Volvo Energy has announced an investment of SEK50 million (£4m) in UK-based second-life battery storage specialist Connected Energy.
It will receive a 10% stake in the Newcastle upon Tyne-headquartered company – also operational in Belgium, Germany and the Netherlands – whose technology enables electric vehicle (EV) batteries to have a second-life deployed in commercial scale stationary energy storage systems.
These systems will have lower capital, cycle and environmental costs compared to first-life battery storage systems.
Giving batteries a second life realises more value from the embedded resources, displaces the environmental impact of new battery production, delays recycling until processes are more efficient and cost-effective and increases the residual value and improves the economics of transport electrification.
Joachim Rosenberg, President Volvo Energy said: “There is a great deal of untapped potential in the second-life use of batteries. This forward-leaning investment aims to facilitate the scaling-up of second-life battery energy storage systems and further secure circular business opportunities for the forthcoming ramp-up in Volvo Group’s second-life battery returns.
“Together with Connected Energy, we will minimise the environmental impact of the batteries that has powered Volvo Group vehicles. By repurposing the batteries, we obtain the full value from them – from a climate, environment and business perspective.”