- Second-life EV batteries are still a relatively new concept for many in the energy space. What makes now the right moment for this market to take off, and how do you see demand evolving as EV adoption continues to rise?
If we take a look in the rear-view mirror, what was happening a decade ago tells the whole story. Commercial EV sales were beginning to scale, with the first model available in North America being the Nissan Leaf, followed by the Chevy Bolt and Tesla. In all, hundreds of thousands of units have been sold in the last decade. Now, 10 years later, we’re seeing similar exponential growth as these batteries come to the end of their automotive life. In the United States, there are ~6M EVs on the road with ~1.5 million EVs sold in 2024. Off-spec and recalled batteries add significant capacity to this valuable repurposing opportunity. What started as a trickle of batteries quickly became a steady stream, and it is becoming a flood of batteries that are good candidates for repurposing.
- From both a cost and performance perspective, how does second-life energy storage stack up to new battery energy storage systems and other long-duration storage technologies? What are the top considerations/factors grid operators should be aware of when pursuing projects?
We’re acquiring batteries for a fraction of what new stationary storage batteries sell for, and integrating them into cabinets at well below half the cost of a new battery system. The key is delivering reliable and effective storage solutions at significantly reduced prices. For long-duration storage, there’s no technical limitation. We can easily create 8-hour battery profiles by using whole battery packs, which helps reduce processing expenses. Additionally, the recycling economics for EV batteries aren’t great; recyclers can barely afford to pay anything for a battery without ending up in the negative. Meanwhile, B2U can afford to pay much more for a battery given the value-add of repurposing, while still offering storage solutions at a fraction of the cost of new batteries.
- As more renewable energy sources come online, what role can second-life energy storage play in stabilizing the grid, supporting peak demand, and reducing curtailment? Who are the typical customers?
The lowest cost form of energy on the grid is solar and wind resources, but these require firm power. Repurposed batteries help stabilize intermittent, low-cost renewables by managing the duck curve, storing daytime solar energy, and discharging it during evening peak demand. Initially, our customers were our own grid projects. We wanted to demonstrate the effectiveness and reliability ourselves, rather than just talking about potential. Now, we’re seeing interest from large developers, utilities, and power plant owners who are becoming more comfortable with the bankability of our approach.
- What are the biggest hurdles to scaling second-life battery storage (technical, supply chain, or regulatory), and how is B2U overcoming them?
It’s all about risk management. We focus on two critical areas: ensuring safety through rigorous permitting and certification, and creating investor confidence by demonstrating the risk profile of our deployed solutions. Our unique approach of maintaining whole battery pack integrity and demonstrating consistent performance helps mitigate investor concerns and overcomes traditional barriers in the battery repurposing market. However, our business model is about more than just technology; it’s about proving that we can finance large-scale projects, monetize tax credits, and create a compelling investment opportunity.
- How do you see EV battery repurposing for the large-scale energy storage sector evolving over the next five years? Will we continue to see recyclers, OEMs, and utilities jump on this market opportunity?
The next five years will see a flood of batteries becoming available for repurposing. What started as a trickle with early Nissan Leaf batteries is transforming into a massive opportunity. Implementing these projects is challenging, but that’s our competitive advantage and what makes it difficult for others to compete with us at this stage. We’re not just talking about potential or one-off projects; we’re building the infrastructure to make second-life battery storage a reality.
