The electric vehicle (EV) market is set to grow quickly, but so far, there has been no consensus on the ‘second-life’ of the used EV batteries. In a report from Bloomberg New Energy Finance (BNEF), senior analyst Claire Curry has compiled the first data, showing that low-cost energy storage could be feasible soon.
BNEF forecasts that there will be 29 GWh of used EV batteries coming out of cars in 2025, greatly exceeding the size of the current stationary storage market. According to the report, of this total, almost one-third will get a second life as stationary storage (10 GWh).
Curry explains that today, a new stationary storage system can cost up to $1,000/kWh. In contrast, re-purposing used EV batteries could cost as little as $49/kWh in 2018, with an additional $400/kWh cost to convert to stationary.
The report notes that the auto industry is divided on the issue: Tesla has stated it will not be involved in second-life projects, but BMW, Nissan and Mercedes-Benz already have second-life stationary storage projects in place.