Circular Economy-Based Alternatives beyond Second-Life Applications: Maximizing the Electric Vehicle Battery First Life

Abstract

Electric vehicle battery second-life applications are gaining attention as a way to minimize the environmental impact and increase economic profits. However, the demand for stationary energy storage is expected to be saturated in the near future with these second-life batteries. This fact, in addition to the several technical and economic challenges of second-life batteries, promotes exploring other alternatives. This work analyses and compares these possible approaches in terms of battery degradation and economic profit. The results show that for large batteries, intensive Vehicle to Grid does not cause an early retirement of the battery and allows reducing the underuse of the battery. In addition, for the same battery size, Vehicle to Grid provides more economic profit than second-life applications. Nevertheless, only in a few cases does this appear to be more profitable than simply utilizing the battery for driving. Importantly, this study has shown how the assessment of the second-life tends to be too optimistic as a consequence of assuming a fixed End of Life threshold for the batteries.