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A Method Based on Circular Economy to Improve the Economic Performance of Second-Life Batteries

Author

Listed:
  • Roberto Álvarez Fernández

    (Department of Industrial Engineering, Universidad Nebrija, Calle Santa Cruz de Marcenado 27, 28015 Madrid, Spain)

  • Oscar Castillo Campo

    (Department of Industrial Engineering, Universidad Nebrija, Calle Santa Cruz de Marcenado 27, 28015 Madrid, Spain)

Abstract

Batteries are essential for the functionality of electric vehicles (EVs), leading to their design with enhanced performance and durability. Consequently, traction batteries are often replaced while they still retain the properties for use in less stressful demanding applications, with lower power and storage requirements. This serves as a notable opportunity for circular economy. The energy management system presented is designed with lithium-ion batteries coming from EVs and repurposed for electricity storage as a smart backup solution for buildings. The system buys and stores energy from the grid during low-cost periods and utilizes the stored electricity to feed the demand, avoiding high electricity prices and smoothing out peak consumptions exceeding a predefined power limit. To illustrate the proposal, a case study is presented based on the Spanish market, analyzing the impact on the electricity savings for end consumers as well as the extended second-life estimation for a pack of batteries. The analysis of the results will help assess if the system is both economically feasible and environmentally sustainable from a circular economy point of view.

Suggested Citation

  • Roberto Álvarez Fernández & Oscar Castillo Campo, 2025. "A Method Based on Circular Economy to Improve the Economic Performance of Second-Life Batteries," Sustainability, MDPI, vol. 17(4), pages 1-24, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:4:p:1765-:d:1595068
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    References listed on IDEAS

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