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Driving to the future of energy storage: Techno-economic analysis of a novel method to recondition second life electric vehicle batteries

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  • Horesh, Noah
  • Quinn, Casey
  • Wang, Hongjie
  • Zane, Regan
  • Ferry, Mike
  • Tong, Shijie
  • Quinn, Jason C.

Abstract

The transportation sector is trending towards electrification which means a dramatic change to the availability of used Lithium-ion (Li-ion) batteries which can be reused for grid energy storage systems (ESS). However, second life battery modules can have an imbalanced state of health (SOH) between cells which can reduce battery safety, life, and depth of discharge. This work evaluates the economics of a novel Heterogeneous Unifying Battery (HUB) reconditioning system that cycles battery modules to unify cells’ SOH to improve their second life battery performance. The HUB reconditioning cycles can be performed in one of two ways: recondition with grid services or recondition through energy shuffle. The results from this work demonstrate that a simple repurposing process will likely have a lower second life resale price (56 $/kWh) than the HUB system (62 $/kWh) in our baseline scenario; however, in our target scenario the HUB system (34 $/kWh) has a lower resale price than the repurposing system (38 $/kWh). This work also includes an economic analysis for using reconditioned batteries in a grid ESS that was compared to an ESS that is assembled with new Li-ion batteries. Results show that HUB reconditioned ESS require less grid revenue (194 $/kW-year) than new Li-ion ESS (253 $/kW-year). Finally, the HUB reconditioned ESS is shown to be economically feasible in 63% of frequency regulation, 18% of transmission congestion relief, and 16% of demand charge reduction markets but not economically feasible in spin/non-spin reserve, voltage support, and energy arbitrage markets.

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  • Horesh, Noah & Quinn, Casey & Wang, Hongjie & Zane, Regan & Ferry, Mike & Tong, Shijie & Quinn, Jason C., 2021. "Driving to the future of energy storage: Techno-economic analysis of a novel method to recondition second life electric vehicle batteries," Applied Energy, Elsevier, vol. 295(C).
    • Handle: RePEc:eee:appene:v:295:y:2021:i:c:s030626192100475x
    DOI: 10.1016/j.apenergy.2021.117007
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    Cited by:

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    2. Ali, Hayder & Khan, Hassan Abbas & Pecht, Michael, 2022. "Preprocessing of spent lithium-ion batteries for recycling: Need, methods, and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    3. Al-Wreikat, Yazan & Attfield, Emily Kate & Sodré, José Ricardo, 2022. "Model for payback time of using retired electric vehicle batteries in residential energy storage systems," Energy, Elsevier, vol. 259(C).
    4. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    5. Braco, Elisa & San Martín, Idoia & Sanchis, Pablo & Ursúa, Alfredo & Stroe, Daniel-Ioan, 2022. "State of health estimation of second-life lithium-ion batteries under real profile operation," Applied Energy, Elsevier, vol. 326(C).
    6. Aree Wangsupphaphol & Surachai Chaitusaney & Mohamed Salem, 2023. "A Techno-Economic Assessment of a Second-Life Battery and Photovoltaics Hybrid Power Source for Sustainable Electric Vehicle Home Charging," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    7. Jicheng Fang & Yifei Wang & Zhen Lei & Qingshan Xu, 2022. "Control Strategy and Performance Analysis of Electrochemical Energy Storage Station Participating in Power System Frequency Regulation: A Case Study of the Jiangsu Power Grid," Sustainability, MDPI, vol. 14(15), pages 1-31, July.
    8. Fu, Shiyi & Tao, Shengyu & Fan, Hongtao & He, Kun & Liu, Xutao & Tao, Yulin & Zuo, Junxiong & Zhang, Xuan & Wang, Yu & Sun, Yaojie, 2024. "Data-driven capacity estimation for lithium-ion batteries with feature matching based transfer learning method," Applied Energy, Elsevier, vol. 353(PA).
    9. Gaurav Chaudhary & Jacob J. Lamb & Odne S. Burheim & Bjørn Austbø, 2021. "Review of Energy Storage and Energy Management System Control Strategies in Microgrids," Energies, MDPI, vol. 14(16), pages 1-26, August.
    10. Colarullo, Linda & Thakur, Jagruti, 2022. "Second-life EV batteries for stationary storage applications in Local Energy Communities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    11. Pedram Asef & Marzia Milan & Andrew Lapthorn & Sanjeevikumar Padmanaban, 2021. "Future Trends and Aging Analysis of Battery Energy Storage Systems for Electric Vehicles," Sustainability, MDPI, vol. 13(24), pages 1-28, December.
    12. Kang, Hyuna & Jung, Seunghoon & Lee, Minhyun & Hong, Taehoon, 2022. "How to better share energy towards a carbon-neutral city? A review on application strategies of battery energy storage system in city," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).

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