Second life for EV batteries

EV economics strengthened by battery re-use deal

After the prototypes and the pioneers, the practicalities of electric vehicles (EVs) are up for attention. Nissan has found a second life for their lithium-ion batteries, by selling them on to Japanese trading company Sumitomo for use in the renewable energy sector.

With a near 100% performance needed for their in-car role, huge banks of batteries are discarded from EVs as they pass their prime. But their value can be exploited for a further ten or even 20 years, as load-levellers for the grid. They could store wind power at night, for instance, when less of it is needed, and release it at times of peak demand.

The resale deal makes economic sense of the business model which Nissan plans to use, starting with its LEAF ZEV (zero-emission vehicle) - pictured right. The batteries are the most expensive element of the car, but purchasers would lease rather than buy. With the partnership in place, Nissan can afford to keep the monthly lease low in cost, knowing that they’ll get a high residual value for them from Sumitomo at the end of the road.

For Nissan’s Chief Operating Officer, Toshiyuki Shiga, this is “the final piece of the jigsaw for viable mainstream EVs” – and, he claims, a world first.

Nissan is even touting the batteries as “CO2 negative”, with their second life renewables-support role helping to take carbon out of the system. And perhaps EV owners who go in for microgeneration can get this virtuous circuit going with the batteries still in their car.
– Roger East

28 January 2010

Roger East