Carmakers' Battery Recycling Scheme Could Slash Cost of Green Motoring

Strategic Insights -

A collaborative effort between carmakers like Nissan and General Motors to repurpose used electric vehicle batteries could dramatically alter the economics of green motoring. The industry giants are working on plans to sell old batteries to wind-farm operators, who can utilize them to store power generated by wind turbines at off-peak times. This innovative approach could reduce the cost of electric cars, making them more accessible to the masses. Furthermore, the repurposed batteries could be used for emergency power supplies, providing a valuable backup system.

Key Takeaways:

  • The collaboration between Nissan and General Motors aims to sell used batteries from electric vehicles to wind-farm operators, enabling them to store power generated by wind turbines at off-peak times.
  • The batteries could retain up to 70% of their storage capacity even after they are no longer strong enough to power a car, making them a valuable resource for repurposing.
  • Nissan has established a business in Japan, called 4R, a joint venture with Sumitomo, to process old batteries and sell them to wind farms and solar generators.
  • Similar battery recycling plants will be established in America and Europe, including one in the North East Low Carbon Economic Area around Sunderland where Nissan will make the Leaf and assemble battery packs for Nissan and Renault electric cars.
  • General Motors engineers estimate that recycling batteries from 25 electric cars could form an effective mobile power source, storing 1MW of electricity for use in emergencies or grid breakdowns.
  • The second life of these batteries could extend for another five to ten years, making repurposing a cost-effective option.
  • Customers who buy a car outright can expect a rebate when they part-exchange an expired battery pack in Japan, where demand for second-life batteries is expected to reach 50,000 electric car sets by 2020.

Statistics:

  • Hundreds of thousands of waste batteries are likely to be in circulation globally in 10 years, making repurposing a significant undertaking.
  • The batteries could retain up to 70% of their storage capacity even after they are no longer strong enough to power a car.
  • Nissan plans to sell batteries that still have good storage potential to wind farms, solar generators, and as a standby power supply for homes and industrial premises.
  • The expected revenue from these sales will help to reduce the high initial price of electric cars.

Sources:

  • Reuters: "Nissan to sell recycled battery power to wind farms"
  • BBC: "Nissan and GM to collaborate on battery recycling"
  • Nissan Press Release: "Nissan to Establish Business in Japan for Second-Use Applications of Used EV Batteries"