In a new report for clients, Bloomberg New Energy Finance (BNEF) forecasts that there will be 29 GWh of used EV batteries coming out of cars in 2025. This far exceeds the size of the current stationary storage market. Of this, almost a third will get a second life as stationary storage (10GWh), bringing the cumulative total to 26 GWh.
Senior BNEF analyst Claire Curry notes that today, a new stationary storage system can cost up to $1000/kWh. In contrast, repurposing used EV batteries could cost as little as $49/kWh in 2018, with an additional $400/kWh cost to convert to stationary.
The auto industry is divided on the issue. While Tesla won’t be involved in second life, BMW, Nissan and Mercedes Benz have second-life stationary storage projects in place.