Volvo Energy has signed a â€˜Letter of Intentâ€™ with UK-headquartered Connected Energy with a view to jointly developing a battery energy storage system (BESS).
The two companies intend to build the storage system with batteries recovered from Volvo electric buses, trucks and machines â€œonce they have reached their optimal use in mobile applicationsâ€.
This would create a â€œsecond life for the batteries, delivering significant environmental and economic benefitsâ€, a Connected Energy statement said.
Matthew Lumsden, CEO of Connected Energy, said: â€œThis is an exciting next step in our existing relationship with Volvo Energy with the potential to enable us to take our technology at scale into the European market. In the coming years, the volumes of returning batteries from first life applications will substantially increase. This represents a key opportunity for OEMs like Volvo Group. Together we have the potential to develop and commercialise second life energy storage systems that make electric vehicles (EVs) even more sustainable.â€
Typically, EV batteries still have up to 80% of their original energy storage capacity when they reach the end of their optimal use in a mobile application.
Elisabeth Larsson, senior vice president sales & services from Volvo Energy, said: â€œ The Volvo Group is driven by ensuring that every battery that powers our vehicles is used to its full potential, before being recycled. Repurposing the batteries in line with circular economy principles is good for the environment, good for the consumer, and good for the Volvo Group. Our ambition for a deepened collaboration with Connected Energy announced today will be a key milestone in our mission to move from a linear business model to a circular one by optimizing the batteriesâ€™ full lifecycle whilst creating a product that will enable the transition to a world powered by renewable energy.â€