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Highlights
- The high costs, limited lifespan, and environmental impact of EV batteries have raised the need for second-life solutions to extend battery utility, reduce waste, and make EV ownership more affordable.
- Second-life batteries provide stable energy storage for renewable sources, facilitate dynamic charging systems for EVs, and enable resilient microgrids that power homes, buildings, and communities.
- Reusing and recycling EV batteries reduces reliance on imported materials, thereby supporting a circular economy and fostering a sustainable, self-reliant EV ecosystem.
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EV challenges
EVs face challenges of high ownership costs and limited battery life, creating a stronger need for second-life EV batteries.
As the automotive industry moves towards electrification, one of the significant challenges that persists is the limited lifespan of batteries. While traditional car engines can last over 15 years, even the best EV batteries generally have a life span of around five years. Once an EV battery nears the end of its useful life in a vehicle, it must be replaced with a new one. Hence, the owner faces high replacement costs (around 80% of the original). This short lifespan and high replacement cost raises the total cost of ownership, which deters potential EV buyers. In response, the industry is exploring new approaches to make the most out of these batteries, extending their value through a second life.
Battery technology
Battery innovation promises long-lasting EVs with fast charging and slow discharging cycles.
A future where EV batteries last a decade, or more is on the horizon. EV manufacturers are working to create batteries with longer life cycles and faster charging times, with the goal that one charge will power the car for extended periods. While these advances are exciting, they’re not ready for widespread use. The challenge is to find ways to maximize the utility of EV batteries, specifically by giving batteries a second life before they’re recycled.
Second life for batteries
Second-life applications maximize EV battery utility, reduce waste, and support sustainable energy solutions.
Second life for EV batteries is a sustainable solution that repurposes used batteries in new applications. Second-life initiatives involve reusing these batteries in different roles instead of discarding or dismantling them down to their raw materials. A key goal of this approach is to delay the need for complete disintegration and recycling, thus avoiding unnecessary waste and costs. With second-life solutions, EV batteries that no longer meet the high demands of vehicle use can still contribute effectively to energy needs in stationary applications.
Circular economy
A circular economy for EV batteries minimizes waste, conserves resources, and promotes energy independence by reusing and recycling.
Creating a circular economy around EV batteries presents a significant opportunity for countries like India, which are heavily dependent on imported raw materials like lithium, cobalt, and phosphorus. By reusing and repurposing EV batteries, India could reduce its reliance on imports and minimize environmental impact. Second-life applications help transition from an import-driven economy to a self-sustained ecosystem, supporting energy independence and sustainable growth. In a circular economy, the battery lifecycle extends beyond a single use, creating a pathway toward true electrification independence.
Applications
Even after their use in EVs, batteries retain valuable storage capacity for stationary applications.
An EV battery’s state of health (SOH) indicates its usable capacity. Once the SOH drops below 80%, the battery’s efficiency and range make it less suitable for vehicle use, leading to its replacement. However, these batteries still hold significant energy storage potential until their SOH drops below 30-40% and can be safely used in stationary applications:
- Home and building backup systems: Second-life batteries can power home inverters, uninterruptible power supplies (UPS), and even larger-scale systems like building microgrids. These batteries provide reliable backup energy for households and commercial buildings, helping to reduce electricity costs and maintain energy during outages.
- Energy storage system (ESS) for dynamic charging of EV: Second-life EV batteries can act as a local energy reservoir at public charging stations. During peak demand times, when the number of EVs exceeds the incoming grid capacity, the ESS can supplement the additional needs for fast charging without overloading the grid.
- Supporting renewable energy storage: Solar and wind energy are inherently variable, depending on weather and time of day. Second-life EV batteries offer a stable storage solution for these renewable sources. While charging may happen intermittently based on weather conditions, the stored energy can be discharged steadily, creating a dependable renewable energy source that isn’t limited by natural fluctuations.
Once second-life batteries reach about 30-40% SOH, they can be dismantled, and their materials can be recycled and repurposed to create new batteries. This disintegration process represents the “rebirth” of the battery in a different form, allowing materials to return to the supply chain for future applications.
Sustainable future
Second-life EV batteries are key to lowering ownership costs, promoting renewable energy, and supporting sustainability.
By maximizing the value of EV batteries through second-life applications, we address both economic and environmental challenges associated with electric vehicles. Second-life batteries present a promising opportunity to make EV ownership more affordable, promote renewable energy, and reduce dependence on imported materials. We're moving toward a sustainable, self-reliant energy future through these initiatives, supported by all stakeholders in the EV ecosystem.
