Hyundai Motor Group (HMG) said it had selected Wartsila for a technology and commercial partnership designed to use second-life electric vehicle (EV) batteries in the growing energy storage market.
The global partnership will combine HMG's expansion in electric vehicles with Wartsila's growing energy business, which includes 67GW of installed power plants and energy storage technology and software created through the acquisition of Greensmith Energy.
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The partnership will target energy storage products and platforms that maximise HMG's second-life EV batteries to be commercialised in Wartsila's existing customer and channel networks across 177 countries. Wartsila sold 4GW of power plants in 2017 in both developed and developing regions of the world.
The partnership will create a growing business and market for advanced energy storage systems and target both utility-scale and commercial applications suitable for second-life EV batteries.
The associated business model and collaboration will pursue the establishment of a continuous, global supply chain that uses key OEM relationships to encompass battery manufacturing, EV applications and energy storage redeployments as well as recycling of materials.
"Energy storage is the logical next step in the after-market use of EV batteries," said Youngcho Chi, head of the strategy & technology division and chief innovation officer aty HMG.
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By GlobalData"By repurposing resource-intensive products like EV batteries, we eliminate disposal costs and extend the value of the R&D investment that goes into manufacturing the technology. HMG is strengthening its leadership in clean technology and sustainability by participating in the new energy business."
In 2025, there will be 29GWh of second-life EV batteries available, far exceeding the size of today's stationary storage market, with 10GWh currently available for storage application.
"This presents a blue ocean in the new energy business that the partnership between HMG and Wartsila aims to capitalise on," HMG said.
"Wartsila through the capabilities and integration experience of Greensmith Energy, will develop a cleaner and more powerful approach to second-life battery applications for HMG," said Javier Cavada, president of Wartsila Energy Solutions. "Our strategic partnership represents the life-cycle vision we strive to deliver to our customers and partners around the world. Incorporating second-life-EV batteries into our energy and integration business underscores our deep commitment to building sustainable societies with smart technologies."
HMG is developing a 1MWh-level ESS that uses Hyundai Ioniq and Kia Soul second-life batteries by using its proprietary technology and has implemented a demonstration project in Hyundai Steel's factory.
