Can second-use of EV batteries in Energy Storage Systems reduce demand for critical raw materials in Europe more than recycling?

Övrigt konferensbidrag, 2023

Electric Vehicles (EVs) are becoming increasingly popular in Europe due to their perceived environmental friendliness and cost-effectiveness. However, one of the most critical challenges remains to find an efficient way to use EV batteries after they reach their end-of-life (EOL). One solution is using EV batteries in a secondary life as a stationary Battery Energy Storage System (BESS). BESS can help increase battery lifespan and store energy from renewable sources (RS) such as wind and solar. Additionally, the supply of Critical Raw Materials (CRMs) is an imminent challenge for Europe. Second-life to EV batteries has the potential to offset the use of CRMs in new battery manufacturing for BESS. However, using EV batteries in BESS reduces the available quantity of recycled CRM for new EV battery production leading to an increase in primary CRM demand. Therefore, there is a need to assess the dynamics of second-life EV batteries supporting BESS and its effects on CRM demand in Europe.

The study explores to what degree the capacity of batteries from EVs reaching their EOL in Europe may be sufficient to support BESS by 2050 and the subsequent effects on CRM demand. The study is divided into multiple parts. First, a dynamic stock model (DSM) is employed to estimate the number of battery EVs (BEVs) and Plug-in hybrid EVs (PHEVs) in Europe, reaching EOL for each age cohort from 2018 to 2050 across each EU member state. Subsequently, a dynamic battery stock model (DBSM) is developed to assess the stock, degradation of different battery types, and capacity under different rates of recovery for second use from the EVs reaching EOL. This available capacity is compared to the demand for new batteries required in BESS and EVs, which allows for estimating the offset demand in primary CRMs. In scenarios, the effect of different BESS demands, recovery rates for reuse of EV batteries, and recycling efficiency of batteries are explored. The strength of this study resides in the detailed dynamic modeling of EV batteries for use in BESS in Europe, considering spatial and time variabilities. The results show the share of the overall RS electricity generation that second-life EV batteries in BESS can support by 2050 . This study also indicates a possible tension between BESS and EV sectors without supportive actions in increasing CRM availability for the EV sector and the importance of CRM recycling efficiency.