The viability of the field of battery second life or battery repurposing/reuse is accelerating the energy transition ecosystem's growth, both in scale and in circularity
SLBs play a pivotal role in supporting the integration of renewable energy sources, such as wind and solar, into the energy mix
These batteries can be around or over 50% cheaper than their first-life counterparts, according to various reports.
In the realm of energy, the transition from a linear ‘take-make-waste’ model to a sustainable circular economy is not merely a shift in perspective; it represents a comprehensive rethinking of how we design, produce, and consume energy resources.
At the heart of this shift lies the concept of second-life batteries (SLBs), a paradigm of value creation that has profound implications for the Energy Transition. SLBs.
Often derived from electric vehicle (EV) batteries that have reached the end of their automotive life, SLBs embody a transformative approach towards enhancing energy storage, promoting circular economy principles, reducing costs, addressing resource scarcity, and influencing policy and regulation.
The viability of the field of battery second life or battery repurposing/reuse is accelerating the energy transition ecosystem’s growth, both in scale and in circularity. The capability to store energy efficiently and economically is paramount to all Net Zero and Industrial Decarbonisation efforts. Second-life batteries offer a compelling solution to this challenge.
These batteries retain approximately 70-80% of their initial capacity even after their use in EVs, according to reports featured on Deloitte. This residual capacity can be harnessed for less demanding applications, making SLBs ideal candidates for a diverse range of stationary energy storage systems (ESS).
Expansion Of Renewables
SLBs play a pivotal role in supporting the integration of renewable energy sources, such as wind and solar, into the energy mix. They function as energy reservoirs, storing excess energy generated during peak production periods and releasing it during periods of high demand or low production.
This ability to smooth out imbalances between supply and demand makes SLBs invaluable in the quest to replace fossil fuel “peaker” plants, which are called upon for a few hours each day when energy demands surge. By doing so, SLBs facilitate the expansion of renewables and expedite the transition to a carbon-free power grid.
Enhanced Battery Lifecycle Management
Battery lifecycle management companies aim to identify second-life applications for these batteries, ensuring that most of the raw materials from used batteries are either recycled or refurbished in alignment with Extended Producer Responsibility guidelines, which are implemented in India through the Battery Waste Management Rules (BWM Rules 2022). The extracted materials are then channelled into the manufacturing of Lithium-ion cells, fostering a circular economy for EV batteries.
Cost Effectiveness And Value Optimisation
Second-life batteries, with their residual capacity and rejuvenated purpose, present significant economic advantages centred around demand easing and value optimisation. These batteries can be around or over 50% cheaper than their first-life counterparts, according to various reports.
This cost-effectiveness extends not only to the individual consumer but also helps accelerate the broader energy storage ecosystem. As the demand for Energy Storage System (ESS) batteries eases due to the integration of SLBs flowing in from repurposed EV batteries, we will see a positive impact on the affordability of both EVs and ESS.
In essence, SLBs offer a practical means to make sustainability, renewables, and energy security more accessible to a wider audience by virtue of lowered costs and abundantly versatile use cases.
Alleviating Supply Concerns
The surging demand for EVs has led to concerns regarding the availability and price volatility of critical metals required for battery production. SLBs provide a strategy to extend the value of these resources, thereby also addressing resource scarcity. By repurposing and reusing these batteries, we alleviate supply concerns, thereby enhancing resource security and mitigating the risk of critical material shortages.
Road Ahead
The rise of SLBs has necessitated the development of appropriate policies and regulations. These include standards for battery handling and disassembly, market structures for SLBs, and measures to prevent mass disposal.
India has significantly promoted energy storage systems through its National Framework for Energy Storage Systems. The Ministry of Power released this framework, which aims to integrate ESS as a fundamental part of the country’s power infrastructure.
In the guidelines, India has included solar projects with ESS within its scope, a notable expansion from the previous version. This inclusion emphasises the importance of energy storage in the context of renewable energy generation.
The framework also encourages the development of round-the-clock energy projects, fostering energy security and grid stability. It enables shorter power purchase agreement (PPA) tenures, reducing the standard term from 25 to 20 years, which can facilitate the tariff landscape in the renewable energy sector. These developments reflect India’s commitment to enhancing energy storage and its role in supporting renewable energy integration.
In Conclusion
The paradigm shift represented by second-life batteries extends to the microcosm of individual choices and resonates in the macrocosmic realm of global energy sustainability. Each battery we extend the life of, and each material we recycle, is a contribution to the grand journey towards a circular economy of clean energy.
Second-life batteries thus embody a luminous example of the benefits of switching from a linear to a circular economy, providing value, sustainability, and a promising pathway to address global energy challenges.
It is imperative that we continue to support and invest in this paradigm of value creation as we strive for a more sustainable future in energy, as exemplified by India’s announcement of the National Framework for Promoting ESS and recent sector partnerships for battery repurposing.
