Next-Life Opportunities for Lithium-Ion Batteries
Earl Bloom, Dow Kokam

While the lifespan of lithium-ion batteries in transportation applications is a critical factor in performance, the fact is that at the end of its “useful” life in a vehicle, a battery still has approximately 80 percent of its capacity remaining and therefore significant value.

This has led to much discussion as battery companies, OEMs, universities and national labs explore the optimal options to ensure a closed-loop lifecycle for lithium-ion batteries that can minimize environmental impact and maximize value.  Looking beyond wasteful disposal solutions to both second-use and recycling of raw materials, components and e-systems, these “next life” opportunities of operationally capable lithium-ion batteries can open new channels of revenue for innovative suppliers that can manage the new rung on the supply chain.

Second-use
After its useful life, while a battery may no longer be effective for powering a vehicle, it can still have enough capacity and power to safely deploy in a “second-use” application.  “Second-use” applications could significantly increase the total lifetime value of the battery, and thus reduce its cost to the automotive user.  Second-life applications include the following:

• Grid-based stationary (e.g. energy time-shifting, renewables support)
• Off-grid stationary (e.g. backup power, remote installations)
• Mobile stationary (e.g. auxiliary systems)

There are currently many factors which must be taken into account as a second-life market is developed including:

• The rate at which a battery degrades after 80 percent capacity
• The cost of refurbishing and integrating batteries
• The quick pace of development of competing technologies for renewable energy storage
• Lack of a clear logistics and distribution channel to collect batteries after their primary life
• Lack of market mechanisms and presence of regulation

Recycling
Battery recycling has been the norm for close to 100 years, and many of the same processes employed in primary battery recycling can be replicated with lithium-ion batteries.  Currently, there are several recycling companies collecting and recycling lithium-ion batteries.  Depending on the metals employed in the battery, the value generated from recycling can exceed the cost of disposal.  While this concept is still in its infancy, the development of regulations and processes related to the recycling of lithium-Ion batteries would facilitate its advancement in the coming years.

In closing, it is clear that there are viable alternatives that can extend the life (and hence the value) of lithium-ion batteries used in xEV applications.  It is evident that this market has the potential to grow exponentially as electric vehicle adoption enters the mainstream further, providing new business opportunities for suppliers throughout the value chain.

Earl Bloom can be contacted at ebloom@dowkokam.com.