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From cost centre to profit centre: how strategic partnerships are unlocking the full value of EV batteries

The automotive industry faces a growing challenge: batteries that reach end-of-life but still retain 70-80% capacity. Strategic partnerships are transforming these batteries from cost liabilities into revenue-generating assets. We spoke to Alex Charr, COO, about Connected Energy’s partnership model.

09/10/2025

Author: Alex Charr, COO

Every electric vehicle in a fleet carries a hidden value that most operators overlook. When those batteries reach the end of their vehicle life, operators have a critical choice: pay for recycling with little financial return or repurpose those batteries for a profitable second life.

In the EU and UK, manufacturers, whether vehicle OEMs or battery OEMs, bear responsibility for end-of-life batteries. While the traditional route has been costly recycling, second-life applications offer a more attractive alternative. By repurposing these batteries for grid-scale energy storage, operators can turn a balance-sheet liability into an asset that continues delivering value for years to come.

For fleet operators managing multiple vehicles, this isn’t just about individual batteries. It’s about creating a systematic approach to vehicle lifecycle management that fundamentally improves the total cost of ownership

The scale of the opportunity

Two powerful trends are converging to create a window of opportunity. McKinsey & Company forecasts that second-life battery supply could exceed 200 GWh annually by 2030. At the same time, demand for utility-scale energy storage could reach 183 GWh each year.

The implication is clear: second-life batteries could meet a substantial share of global utility-scale battery energy storage demand. Among potential markets, the utility-scale BESS sector is uniquely capable of absorbing the volumes of retired EV batteries that will soon be available. By deploying these packs into grid-scale systems, their remaining capacity can be monetised through energy trading markets – shifting the economics from disposal costs to sustained value.

The financial case

Here’s what the numbers show. By incorporating retired batteries into a utility-scale BESS, even after factoring in all development costs, each pack can generate around €50–60 per kWh, equivalent to about a quarter of its original 2017 value.

On its own, that figure may not seem dramatic. But when viewed through the wider business lens, the impact is significant:

  • Offsetting replacement costs: With today’s battery pack prices much lower than in 2017, the second-life value can meaningfully reduce fleet renewal costs.
  • Factoring value into planning: Fleet operators can integrate second-life value into total cost of ownership calculations from day one, improving business case accuracy and reducing costs for end customers.
  • Creating long-term revenue streams: Repurposed batteries deployed in grid services can continue generating income for 8–10 years, far exceeding the financial return from immediate recycling.

What makes a partnership work

Connected Energy’s experience with OEM collaborations has highlighted two critical ingredients for success:

  • Transparent data sharing: Access to detailed battery specifications, performance data, and operational history is essential to design effective second-life applications. Without this transparency, optimal system design is impossible.
  • Realistic value expectations: Residual capacity does not equal residual value. The real opportunity lies not in maximising upfront payments but in capturing sustained long-term revenue.

A recent partnership example is our collaboration with . Together, we’re co-developing a scalable second life battery energy storage solution using Forsee Power’s battery packs which are deployed in 1,500 electric buses in Europe. Read the full announcement.

What sets Connected Energy apart, according to our partners, is not just technical expertise but full value-chain capability. We don’t just accept batteries; we:

  • design and industrialise products
  • develop utility-scale sites projects for battery deployment
  • oversee revenue generation opportunitieso
  • optimise and monitor battery performance
  • manage batteries through their entire second life to final recycling.

As one partner told us: They’re the only company that can do everything. Other players might handle one piece of the puzzle but Connected Energy manages the entire value chain.”

Future outlook

As EV adoption accelerates worldwide, the need for grid-scale energy storage is also surging. This convergence is creating an unprecedented opportunity but realising it requires foresight. Second-life deployment cannot happen overnight; it demands time, communication, and transparency across the supply chain.

For any manufacturer or fleet operator facing the growing challenge of end-of-life batteries, the message is clear: start the conversation early. By doing so, you can transform a balance-sheet liability into a long-term asset.

Ready to unlock the value of your retired EV batteries?

Contact Connected Energy to begin your technical assessment.

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