Around the globe and in India, the environmental and economic challenges of manufacturing car batteries are a hot topic in various communities. In parallel, electric vehicle (EV) battery production has surged in the last decade.
While there is no doubt about the environmental benefits of using EV batteries, there may be doubts over the business case. At this point, many refer to the concept of a circular economy. Let’s bring back the joie de vivre that most Indian cities had forgotten.
The circular economy is one area where EV batteries promise economic growth opportunities to a wide range of stakeholders. In this article, we’ll briefly touch on three of those stakeholders. But first, let’s see how the creator economy ties to economic benefits for these stakeholders.
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Circular Economy
The circular economy concept encompasses all activities and strategies that enable the most efficient use of a resource before it is recycled. It is based on a simple premise: To extend the life cycle of a product, the manufacturer must consider from the beginning of the design process how to collect, reuse, refurbish and recycle the parts and components used in production. Let’s not forget the issue: In India, we are all working to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build world- class manufacturing infrastructure.
Promise of Recycling
Electric car batteries do not have a stellar track record when it comes to recycling. A large proportion of them end up in landfills. While it is true that the quality of recycling will improve with the use of certain means on the market to create closed-loop systems, this is a long road to take. Hence, we opt for the second alternative.
Second Life: An Economical Solution
While recycling focuses on the metal composition of the battery, second-life solutions focus on taking a semi-used battery in a new direction. As mentioned earlier, a battery that has reached 80% of its capacity is no longer suitable for a car.
With a second-life strategy, a battery can be used as a spare EV battery or even in a stationary energy storage system (SES). This is where EV batteries, through second-life solutions, can become of economic interest to multiple stakeholders.
There are a variety of applications for lithium-ion batteries in SES alone, including utility, industrial, and domestic markets. Frequency regulation, off-grid supply, emergency storage, consumption management, and charging infrastructure are examples of these applications.
Technically, EV batteries can be used for most of these conditions. In fact, it could be argued that EV batteries are too advanced for use in comparatively relaxed stationary situations. In contrast, the conditions under which batteries are employed in automobiles are significantly more demanding.
Evolute Cleantech Solutions
Evolute Cleantech Solutions provides excellence, flexibility, and technology that exceeds customer expectations for quality and service. Evolute Cleantech Solutions is one of the leading provider of battery packs and battery management systems. Our batteries include Li-ion (lithium-ion) and Li-Po (lithium-polymer), LiFePO4 (lithium iron
phosphate). Adapting to different requirements, including battery management system and protection circuit module, enables electric vehicles to use green energy.
Who Benefits From EV Batteries?
The advantages of second-life batteries go far beyond creating an energy storage alternative. Second-life solutions provide a distinct and intriguing value proposition to each of the three stakeholder groups: the car OEM that provides the used battery, the hardware provider that changes the battery’s function and sells it to the consumer, and the consumer who uses the second-life battery.
● OEMs. Companies that supply EV batteries generally have a responsibility to recycle, repurpose, or dispose of end-of-life batteries in several countries. We anticipate that almost all countries will adopt an EPR mandate in the coming years. By repurposing the batteries for a second-life solution, an OEM can defer or even pass on the cost of this responsibility to the consumer.
● SES Providers. Due to the scarcity of second-life batteries, companies now primarily provide SES equipment with fresh batteries. But, as more used batteries enter the market, companies can offer more devices that run on half-used batteries. This gives them more freedom to create applications that best meet their customers’ needs regarding price, functionality, and delivery time.
● End Consumers. Customers are looking for a battery storage system that provides a clean, peaceful and self-contained energy source. Second-life batteries will appeal to consumers who want to save money because they can provide these benefits at a lower price.
Finally, maintaining the utility of a battery through a second-life use maximizes the return on the carbon cost incurred in its production—thus benefiting the Earth as well.
We at Evolute Cleantech Solutions provide excellence, flexibility, and technology that exceeds customer expectations for quality and service. Evolute Cleantech Solutions is one of the leading provider of battery packs and battery management systems.
Our batteries include Li-ion (lithium-ion) and Li-Po (lithium-polymer), LiFePO4 (lithium iron
phosphate). Adapting to different requirements, including battery management system and
protection circuit module, enables electric vehicles to use green energy.
Bottom Line
Given these opportunities in India and across the world, benefits provided to different stakeholders, and lower environmental impact, many auto companies are looking for new, effective strategies to get the most out of second-life batteries. Overall, there are many promising signals for the circular economy in EV batteries and a strong public will for EV batteries to do well. The 2020s will be marked by ongoing innovation in batteries. While there is still a long way to go, regulators and industry stakeholders should work together to make EV batteries an excellent solution for a greener future. Please visit our website to read related articles and our unique Cleantech solutions for a better world.