Dive Brief:

• Nissan and EDF Energy last week announced they have partnered on a project that will combine used electric vehicle (EV) batteries from the car manufacturer with demand response capabilities developed by the U.K. energy company.
• The push to experiment with second-life storage uses comes as the electric sector prepares for a stream of used EV batteries that can have a decade of life left in them, and up to 70% of their capacity, the companies said.
• The agreement also includes provisions for future collaboration on smart charging, distributed resources and grid integration. The current project will test whether the batteries can support on-site generation and demand management, along with additional revenue streams.

Dive Insight:

With millions more EVs expected to hit the road in the next few years, companies are working quickly to find uses for the used batteries that will result. There have been several second-life projects or partnerships announced recently, a sign the industry is well-aware the batteries have plenty of use left in them after they come out of vehicles.

Nissan and EDF are not the first to the scene. Earlier this year, Wärtsilä and Hyundai Motor Group similarly partnered to develop uses for second-life EV batteries. Hyundai estimates that in 2025, there will be 29 GWh of second-life EV batteries available.

Already this year, more lithium-ion batteries are being installed in electric vehicles than into consumer electronics, according to EDF and Nissan. Millions of used electric vehicle batteries are expected to be available for the energy storage market in the coming years.

The transition to electric transportation will create huge opportunities for businesses and consumers, company officials said. But the EVs are "just the start," said F​rancisco Carranza, director of energy services for Nissan Europe. The second-life program ensures batteries will continue to work "long after their life in cars."

While EV adoption remains low in the United States, there is rapidly growing interest. The Edison Electric Institute projects that 7 million of the zero-emission vehicles will be on U.S. roads by 2025.