Why repurposed batteries are a win-win opportunity
The shift of electric vehicles into mainstream use has already disrupted the automotive value chain in substantial ways and is now on the brink of disrupting the energy-storage value chain as well. The need to dispose of millions of EV batteries in the future has already led to the rise of new recycling and reuse industries, creating new value pools with new potential to harness and integrate renewable power into our grids. We at RePack - which is set to become an internationally leading player in repurposed battery systems - believe that there are four main reasons why repurposed batteries are a win-win proposition:
1. Lower cost
Li-ion batteries utilize rare earth minerals which have both limited availability and a very high price. Even though battery prices have been decreasing steadily, they are still above breakeven for many applications. Leveraging the quickly increasing volumes of discarded EV batteries - of which many have more than 80% remaining capacity and 10 years expected lifetime in second life applications - is a sustainable solution to this challenge. RePack has the ambition to reduce storage systems cost by 70% by 2025. This advantage is making RePack battery systems a profitable investment for a whole new range of customers and applications, giving them high-tech, modular energy storage systems at a significant cost advantage compared to systems that use new batteries.
2. Lower carbon footprint
Reducing our carbon footprint is one of the most important challenges facing mankind. Producing a new li-ion battery emits 120 kilograms of CO2 equivalents (CO2e) per kWh produced, meaning a household battery system is responsible for about 1.5 tons of CO2e. By using second-life EV batteries, RePack is able to obtain up to 95% lower carbon footprint compared to new battery systems. At the end of the usable lifetime, RePack hands the batteries over for material recycling, thus maximizing their utility and minimizing the CO2e emissions per kWh delivered. Repurposed EV batteries will not solve all the challenges of getting to zero carbon emissions, but are a leap towards enabling a fully renewable future for everyone.
3. No extraction of rare earth minerals
Producing li-ion batteries requires extensive mining of rare earth minerals like lithium and cobalt, which comes at a cost for both society and consumers. As these metals and minerals are increasing in demand and new regulation mandates the use of recycled materials, battery manufacturers will eventually have to recycle used batteries in order to use the materials for production of new batteries. Even though exact numbers are not available some experts indicate numbers as low as 5% of used EV batteries are recycled to collect valuable metals at the end of their first life, demonstrating that there is still a long way to go for the industry. While recycling will become a key part of the future battery value chain, repurposing usable batteries will be an essential component in maximizing all available value from these scarce resources. RePack is striving to build a profitable circular value chain that enables the repurposing of what can be reused, and recycling of what cannot.
4. Higher quality battery systems
The purity and homogeneity of each step in battery production is key to the performance and longevity of each battery. Due to many years of research and development, we have become great at producing these li-ion batteries. In fact, so good that we only expect a faulty cell for every millionth cell produced.
So how can EV batteries be even better? Car manufacturers are risk-averse companies. They produce products that transport people around in all kinds of harsh environments. Their products - cars - have to withstand heat, cold, water, chemicals, vibration and shocks, and are expected to last for more than 8 years (usual warranty for EV batteries). To do this, car manufacturers have to be extremely diligent in how they design, manufacture and test their products.
Battery manufacturers are different, and even within each battery manufacturer, individual production lines are different. Car manufacturers know this, and after a thorough selection process they reserve only the best production lines satisfying the strict requirements needed to handle the life of a car. This has led to batteries for EV applications being up to 10 times better in quality than regular batteries.
Looking ahead
RePack is building standardized and scalable battery systems based on repurposed EV batteries. By focusing on developing innovative technology, supply chains, partnerships and business models, RePack has the ambition of enabling the reused battery revolution and becoming world-leading in this emerging market.
Become a prototype customer by ordering RePack Off-grid Prototype 2 which is now available for a limited pre-order. Please visit https://www.repack.no/repack-prototype2/ for more information (Norwegian-only).