2nd Life Batteries - global electricity

1 2ndLife BatteriesFebruary 2021A white paper from Storage Technological CommunityA white paperby the GSEP Storage communityThis white paper has been produced with the collaboration of:Pasquale Salza (team leader)EnelHead of Long Duration Storage and Hybrid SystemsKakihiraTakahitoKansaiDeputy Manager -Strategy and Cooperation GroupLahoussineMhaniONEEX iaoning YeSGCCT echnical expert in the area of storagePaul H LoeffelmanAEPD irector, Corporate US External Affairs and Head, Corporate International AffairsCarlos J. CasablancaAEPD irector for Advanced Transmission StudiesPaul R. ThomasAEPS upervisor for Distribution PlanningKamyabAmouzegarCenter of Excellence in Transportation Electrification and Energy Storage (CETEES), Hydro-Qu becSenior Research Development ScientistFran ois LaroucheCenter of Excellence in Transportation Electrification and Energy Storage (CETEES)

2 , Hydro-Qu becPhD CandidateVincent-Michel DuvalHydro-Qu becSenior ManagerDavid-Olivier GouletHydro-Qu becProject EngineerAlice Cl mence Peri Hydro-Qu becProject AnalystLuis CalzadoGlobal Sustainable electricity PartnershipSenior Project AdvisorIntroductionEnablingfactorsand limitsEconomicsSustainabilityand CircularityCross-sectorssynergiesIntrodu ctionWhatwemeanwith 2 life Batteries Approachesto 2 life applicationsGSEP Storage TechCommunity experienceon 2 life projectsIntroductionWhat we mean with 2ndlife Batteries ?WhenanEVbatteryreachestheendof itsusefulfirstlife( ), , , ,torecoverinparticularhighlyvaluedmetals suchascobaltandnickel,especiallythanksto mostinnovativeprocesses, ,reusethebatteriesinstationaryapplicatio ns,wherereducedperformancescapabilitiesa restillvaluableSource.

3 McKinsey1st life EV pack2nd life EV packRemanufacturingRestore an EV pack and to reuse it in a vehicle not in focusRepair/ restoreEV pack1st life EV pack2nd life EV packRepurposing of 2ndlife EV battery packsCollect battery packs, select Batteries with sufficient remaining capacity and combine similar EV battery packsSelect and combine suitable battery packs1st life EV pack2nd life EV packRefurbishingof 2ndlife EV battery packsOpen packs, remove modules for possible refurbishment, cell reconditioning or recycling. Repackage modules into new battery packs. Repair/ restore EV packsStationary energy storageSelect and combine suitable battery packsStationary energy storage2nd life refurbishing2nd life EV packAfterthe firstlife ,acoupleofmainalternativearepossiblebefo rerecyclingtheelectricvehiclebatterypack :repurposing,thatmeans usingthepackasitis ,afteraprocessofselectionandcombinationo fsuitablepacks(accordingtocriterialikere sidualstateofhealth,capacity, ),orrefurbishing, ,ifdesignedwiththisscope, ,aftertheirfirstEVuse,EVpackscouldalsobe ingrefurbishedtobeusedagaininEVapplicati ons(insteadthanonstationaryones).

4 Navigant for EnelIntroductionApproaches to 2nd life applicationsStationary energy storage Itisnecessarytodismantlepacks,collectmod ules,measure/test,sort,repackandcertifyt heusedEVbatteries: an adhoc supplychainhastobesetup increaseofcostofbatteriesre-use Anewmodule(tray)BMShastoberealized Currently,onlyfewsystemintegratorshavere quiredknow-howtoimplementthisoption Moretimerequiredtorealizeandcertifyrepac kagedmodules Oncerealizedtherepackagedmodules,theasse mblyandsystemintegrationofthestationaryB ESS systemrequiresthesameneedsofcommonBESS Warrantiesonbatteryperformancescanbeguar anteedbySystemIntegratorRefurbishingof EV batteriesIt sa readytouse approach:reducedtimeandpriceofbatteriesr epurposing(lesslaborintensiveactivity,le ssinvestmentinrebuildingprocess)Reuseofe xistingnativepackBMSI ntegrationactivitiescanbeprovidedbysever alsystemintegratorsAspecificMasterBMS(fo rthewholesystem) ,ortooversizePCSduetohighcurrents, 'tguaranteethebatteryperformances(lifeex tension,efficiency,C_rate.)

5 Justexpectedresidualcapacitycanbeguarant eedbybatterymanufacturerRepurposing of EV battery packs Source: EnelIntroductionApproaches to 2nd life applications: pros and consSite:Melilla, ,islandmodefedbyEndesaGensetpowerplant(6 0,2MW)Testedsolution:4 (repurposing)ofEVbatterypacks(2MW2ndlife +2 MWnewEVpacks),inparalleltotheexistingGen setpowerplant(frequencyregulation).Timin g:CODby2020 Inisolatedsystem,arelevantfdeviation(for exampleduetoafailureofagenerationasset) ,increasingsystemreliabilitySolutionProj ect highlightsSource: EnelGSEP Tech Community experience on 2 life projectsMelilla project by EnelVerifyperformancesofthe2ndlifebatter iesdeclaredbymanufacturers(measurementan dvalidation,referenceKPIs)Internalizeski llsconcerningsystemintegrationtopicstobe ttertunestorageprojectdesignandproposalp hasesKnow-howacquisitionon2ndO&M(predict maintenance,identifytroubleshootingstrat egies)KeyfindingsonMasterBatteryManageme ntSystem(MBMS)

6 Developmenttoeffectivelyoperateanunevenp ackTechnical RationaleUnderstandpossibleinvestmentred uctioninstorageinstallationsUnderstandth eopportunitytousesecondlifebatteriesassp arepartsofstorageinstallationstoreducema intenancecostsDevelopasustainableinitiat ive,thatimprovessustainabilityimpactofba tterysystems/RESD evelopguidelinesonsustainableEVbatteryre useforstationaryapplicationandsustainapr oactiveapproachtowardsregulationandstand ardizationtofostersecondlifeadoption(*)E stablishchainofsuppliersandintegratorsfo rfutureenergystorageprojectsStrategic RationaleR&D&I,withininternationalplatfo rms(EUBatteryAlliance,BatteriesEU,IPCEI) isfocusingwiththegrowingneedofhavingdesi gnstandardsallowinganeasydisassembly( ),aneffectivelabeling(incaseofbatterypac kdisassemblyandmodulesorting,it simportanttohaveclearindicationsofthemod ulechemistry), ,standardizethebatteryStatusofHealtdefin itionisalsoarelevantongoingdiscussion(as oftodayanybatterymakerusesit sownproprietarydefinition).

7 (*)Source: EnelGSEP Tech Community experience on 2 life projectsMelilla project by Enel10 Source: EnelThe 2ndlife BESS facility during the constructionFactory Acceptance Tests GSEP Tech Community experience on 2 life projectsMelilla project by EnelSource: EnelDetails of the EV battery packs repurposed for stationary applicationGSEP Tech Community experience on 2 life projectsMelilla project by EnelGSEP Tech Community experience on 2 life projectsJiangsu ES with 2LB CaseAppliedtoTelecomTower ,thebasestationbackuppowersupplyusedlead -acidbatteries,whichhadpoorhigh-temperat ureresistance,lowenergydensity,andlowenv ironmentalcompatibility. LastyearJiangsuTowerstoppedpurchasinglea d-acidbatteries,andallthebackuppowersour ceswillbereplacedwithlithiumbatteriescom ingfromelectricvehicles.

8 JiangsuComprehensiveEnergyServiceCompany usesretiredelectricvehiclebatteriestopro videcustomizedmicro-energystoragepowerst ationsforenterprises. Itisequippedwithtwosetsofmicro-batteryca scadeenergystoragesystemswithatotalcapac ityof204kWhandachargeanddischargepowerof 40kW. TheprojectcansaveathirdoftheCompany' 2020, the retired power Batteries in Jiangsu Province of China are expected to be about tons and by 2025 it will reach about tons. GSEP Tech Community experience on 2 life projectsJiangsu ES with 2LB CaseEnablingfactorsand limitsKey barriers for 2 life Batteries integrationTechnical Challengesand DriversApplications for 2 life batteriesComplex and unknown technical procedures to better select, integrate and operate 2ndlife system in safety and economical wayLack of data about battery performancein both first and 2ndlife applicationsEconomic uncertainty about 2ndlife battery value Makeavailablebatterylogdataduringoperati onMelillasystemanddefinitionofadegradati onmodel Implementationofanopenplatformtomonitord atafromfirstlifeusetounderstandthecondit ionofthebatteriesandsetthetimetomoveinse conduse.

9 Incooperationwithcarandbatterymanufactur ers Identifyandpromotetheadoptionoftechnical features/standardssuitableforapplication to2ndlifebatteriesalreadyinthephaseofEVb atteryproduction Developmentofthetechnicalstandardstosele ctsecond-lifebatteries:oDefinitionofTest ProtocolforbettersortingoDefinitionofmin imumacceptanceKPIvaluesbasedonclassifica tionsandthemostpromisingapplications Definitionofguidelinesforsystemintegrati ontoguaranteesafetyoperation(BMSVS masterBMSinteraction) EVsstandardizationforinteroperabilityofd ifferentsystemsKey BarriersSolutions to overcome barriers through Melilla projectSource: EnelEnabling factors and limitsKey barriers identification from first experiencesDuringthefirst2ndlifereal-lif eapplication(seeMellilaProjectabove),the mainkeybarrierstothewiderolloutof2ndlife batteriesprojects,andrelatedpotentialsol utions,havebeenidentified:Source: elaboration of McKinsey + ,electrodechemistry,andformat(cylindrica l,prismatic,andpouch).

10 Estimation:upto250newEVmodelswillexistby 2025, , ,nocommonstandardsforbatterymanagementsy stems(BMS)orstateofhealth(SoH) :it factors and limitsTechnical challengesThetechnicalchallengesareconfi rmedalsobyliterature,andcanbesummarizedi n:lackofstandardization(bothtechnicaland regulatory),guaranties,andstrongcompetit ionfrom firstlife : elaboration of McKinsey + smineralssuchascobalt,lithium, ,EVmakerscantakeadvantageof2ndlifebatter iestechnologybyresellingusedEVbatteriest ocompaniesthatwillintegratethemintonewen ergystoragesystems,industrializingandsca lingprocessestoreducecosts, ,carmakersareincreasingthe dollarperkilowatt-hour , factors and limitsMain drivers to overcome challengesNevertheless,variousdriverscan beidentifiedtovalorize2ndlifebatteriesap plications, factors and limitsMain drivers to overcome challengesHighlightsfromEUOnDecember2020 , ,there sspecificarticlerelatedtoSecondLifeBatte ries,thatcontainsfollowingkeypoints.