Volvo Energy has signed a Letter of Intent with Connected Energy with the ambition to jointly develop a battery energy storage system (BESS). The two companies intend to build BESS with batteries recovered from Volvo electric buses, trucks and machines once they have reached their optimal use in mobile applications. This would create a second life for the batteries, delivering significant environmental and economic benefits.
Matthew Lumsden, CEO of Connected Energy, said: “This is an exciting next step in our existing relationship with Volvo Energy with the potential to enable us to take our technology at scale into the European market. We’re proud to be engaging with Volvo Energy on the development of new second life energy storage solutions.
“In the coming years, the volumes of returning batteries from first life applications will substantially increase. This represents a key opportunity for OEMs like Volvo Group. Together we have the potential to develop and commercialise second life energy storage systems that make electric vehicles (EVs) even more sustainable.”
Battery energy storage systems are increasingly used to store and optimize energy from renewable sources. They are also deployed to provide additional power for both commercial buildings and EV charging hubs in areas where there is not enough grid capacity to support banks of EV chargers. Using second life batteries in these systems substantially reduces their carbon footprint compared to using new batteries, while also transforming EV batteries into longer-term, valuable assets.
Typically, EV batteries still have up to 80% of their original energy storage capacity when they reach the end of their optimal use in a mobile application. Connected Energy has developed technology to harness this remaining capacity and use it effectively in stationary energy storage applications.