Volvo Energy has signed an agreement with Connected Energy to build a battery energy storage system (BESS) with batteries from Volvo vehicles once they have reached their optimal use in mobile applications.
The containerised systems will feature batteries from Volvo electric buses, trucks and machines, and development of the first prototype system may begin later this year.
Volvo Energy, which is an investor in Connected Energy, has the ambition to launch the systems on the European market in early 2025.
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.
Connected Energy has developed technology to harness this remaining capacity and use it effectively in stationary energy storage applications.
Matthew Lumsden, CEO of Connected Energy, said, “This 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.
Elisabeth Larsson, Senior Vice President Sales & Services from Volvo Energy said, “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.”
