Annual Capacity For Second-Life Stationary Energy Storage To Hit 11 GWh by 2035

1 year ago by Eric Loveday 7

EDF Renewable Energy's first commercial storage project in McHenry County Illinois

EDF Renewable Energy’s first commercial storage project in McHenry County Illinois

General Electric Lithium-Ion Energy Storage System

General Electric Lithium-Ion Energy Storage System

Recently, Navigant Research put out a post on its expectations for the plug-in electric car second-life energy storage market.

Navigant predicts that by 2035, this market will reach an impressive size of 11 GWh annually. We do expect this to be a booming market as today’s plug-ins reach their end-of-life status due to battery degradation.

The press release below discusses the prediction in a bit more detail.

Annual Capacity of Lithium Ion Batteries for Plug-In Electric Vehicle Second-Life Stationary Energy Storage Is Expected To Reach 11 GWh by 2035

Residual asset value of lithium ion batteries for vehicles could create a distributed energy resource revenue opportunity for automotive OEMs

A new report from Navigant Research explores the concept of reusing plug-in electric vehicle (PEV) lithium ion (Li-ion) batteries for stationary energy storage system (ESS) applications, focusing on the key issues, market drivers, and challenges related to reusing second-life PEV batteries.

Many traction batteries with Li-ion chemistries used in PEVs are showing less degradation and better performance than initially expected. This is sparking the interest of stationary ESS stakeholders, who believe these batteries may hold value beyond the life of the vehicle. Click to tweet: According to a new report from @NavigantRSRCH, annual global capacity of PEV Li-ion batteries available for second-life stationary ESS applications is expected to reach 11 GWh by 2035.

“Now that we’ve entered into the modern era of mainstream vehicle electrification, today’s question is what will happen to PEV Li-ion that have exhausted their vehicle life, but still have capable batteries?” says William Tokash, senior research analyst with Navigant Research. “The potential reuse of these batteries is of keen interest to both stationary ESS developers looking to reduce costs and automotive original equipment manufacturers (OEMs) interested in new revenue models that capitalize on the residual asset value.”

Reusing end-of-vehicle life PEV Li-ion batteries for stationary energy storage applications could solve the problem of new batteries being too expensive in the mid-term, according to the report. This is because used but capable batteries are likely to be sold at a low price while still capable of providing a useful function.

The report, Alternative Revenue Models for Advanced Batteries, explores the concept of reusing PEV Li-ion batteries for stationary ESS applications. The study examines the issues, including market drivers and challenges, related to second-life batteries and suggests moves for stakeholders to help make the concept become a reality. Global forecasts for the availability and capacity of these batteries, as well as their future price ceilings, are provided. The report also assesses the residual energy storage asset value and alternative revenue streams associated with the reuse of PEV Li-ion batteries. An Executive Summary of the report is available for free download on the Navigant Research website.

Source: Navigant

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7 responses to "Annual Capacity For Second-Life Stationary Energy Storage To Hit 11 GWh by 2035"

  1. Mel4EV says:

    I predict there will be a usable supply in coming years from the first gen end of life batteries, but thereafter it may be a very slow trickle, from the Gen 2 cars where a 50% loss of capacity will still exceed the range of first gen EV’s and most of the owners will find rangwe is still adequate!

    1. jerryd says:

      I already have a Volt pack but I’m using it for a lightweight custom EV.
      Most of the other crashed EV packs are going into older lead, new custom EV’s and rebatterying production GM, Ford, Toyota EV’s from the 2000-01 and others.
      Especially those with NiMh going dead after 15 yrs.
      Other than early Leaf in the south, most EV packs with cooling are lasting quite well with at least 12 yr life and wouldn’t be surprised at 16 yr life.
      As for the 11Gwhr a single NG CCGT unit makes more than that showing that storage will never be a big grid thing.
      It only works at retail power pricing and EV’s, not big grid wholesale.

  2. Dan says:

    That means about 110k cars with 100kwh each.

    1. Stephen Hodges says:

      Well they can count out my car’s battery, at 7% loss/year it will be useless for anything long before the car is. (2011 Leaf)

      1. mr. M says:

        A 70% decrease in battery capacity might lead to a near undrivable Leaf. With 25miles range in normal conditions and 13 miles range at winter conditions.

        But for storage solutions a remaining 7 kWh battery is still usable.

    2. mr. M says:

      Or ~400.000 Leafs with 24kWh Battery. That seems pretty easy, since Leaf global sales are above 200.000 already.

  3. deborah crazy train flower power says:

    I really like this idea !!!!!!!!