The potential reuse of these batteries is of keen interest to both stationary ESS developers looking to reduce costs and automotive original equipment manufacturers (OEMs) interested in new revenue models that capitalize on the residual asset value.

—William Tokash, senior research analyst with Navigant Research

Reusing end-of-vehicle life PEV Li-ion batteries for stationary energy storage applications could solve the problem of new batteries being too expensive in the mid-term, according to the report. This is because used but capable batteries are likely to be sold at a low price while still capable of providing a useful function.