BOULDER, Colo.--(BUSINESS WIRE)--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.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Alternative Revenue Models for Advanced Batteries, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.