ORNL econ analysis of repurposed EV batteries for Stationary Applications
by UCSD-Strategic-Energy on Sep 13, 2011
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The objective of this ORNL study is to explore the various possible markets for the secondary use of Li-ion batteries removed from electric or hybrid electric vehicles (EVs or HEVs) after they can no ...
The objective of this ORNL study is to explore the various possible markets for the secondary use of Li-ion batteries removed from electric or hybrid electric vehicles (EVs or HEVs) after they can no longer conform to vehicle specification but still have substantial functional life. This report is the first phase of the study, and the scope is limited to secondary use of Li-ion batteries in power system applications. The primary focus of this report is the cost competitiveness of these batteries for power grid applications. Original equipment manufacturers such as General Motors, Nissan, and Toyota offer long-term warranties for the battery packs in their vehicles. The expectation is that once battery efficiency (energy or peak power) decreases to 80%, the batteries will be replaced. The rationale is that a 20% reduction in the vehicle range, imposed by the decrease in efficiency, would be unacceptable to consumers. Based on various forecasts for market penetration of plug-in hybrid electric vehicles (PHEVs) and EVs over the next 10 years, it is estimated that a large number of PHEVs and EVs will be approaching the 80% battery efficiency level by 2020. These batteries can be recycled or used in other less demanding applications provided a business case can be made for their secondary use. For this economic analysis, data have been gathered on the projected cost of new batteries in 2020 and the projected supply of HEVs, EVs, and PHEVs over the next decade. These data were then used to determine the potential supply of batteries for secondary use and the acceptable refurbishing costs. Based on this, a proposed sale price for the secondary-use batteries has been developed. This price and the system prices for various grid applications were used to calculate potential benefits. In this analysis, the battery pack was assumed to have a lifetime of either 5 or 10 years because the secondary life is dependent largely on application. The applications that offer the most attractive value proposition for secondary use of EV batteries over the entire range of value and cost assumptions used in this report include area regulation, transmission and distribution (T&D) upgrade deferral, and electric service power quality. Those applications should be targeted for additional in-depth analysis and initial deployment of used EV batteries as they become available in the market. However, these markets will presumably not be enough to absorb the entire volume of secondary-use EV batteries predicted for 2020 and beyond. The cost of the applications is determined by the cost of the used batteries, balance of system cost, refurbishment cost, transportation cost, and operation and maintenance (O&M) costs. The transportation cost will depend on whether used batteries are treated as hazardous materials or hazardous waste. When calculating the cost of a particular application, the peak power requirement and the energy capacity of the storage system were defined based on simi
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