Nissan Motor and Sumitomo Corporation have announced joint plans to ‘Reuse, Resell, Refabricate and Recycle’ lithium-ion batteries previously used in electric cars, giving them a ‘second-life’ as energy-storage systems worldwide.
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The ‘4R’ business model is designed to capitalise on the supply of reusable lithium-ion batteries as electric cars achieve widespread acceptance. Today there is no existing supply of large-capacity reusable batteries but, by 2020 in Japan, the demand for ‘second-life’ batteries is expected to reach the equivalent of 50,000 electric cars per year at the minimum, as demand grows for an increasing range of energy storage systems.
“We recognise Nissan’s unique responsibility as the first company in the world to commit to delivering affordable zero emission mobility,” said chief operating officer Toshiyuki Shiga. “Consumers are excited by the promise of all-electric, zero-emission cars, but they also want assurances that lithium-ion batteries can be reused and recycled. In fact, our batteries are not only reusable, they also contribute as a solution to energy storage. We are pleased to have found a business partner in Sumitomo.”
Nissan has committed to bringing electric vehicles to the mass market by fiscal year 2012. As consumers increasingly choose zero-emission cars, demand for second-life batteries is expected to grow as the supply of reusable batteries from electric cars rises. Even after the end of normal vehicle life, the high performance lithium-ion batteries will retain 70 to 80 percent of residual capacity and can be reused and resold to various industries for energy storage.
“As a company that handles initiatives from natural resources and battery materials to building an infrastructure for electric vehicles, we are quite pleased to announce our work with Nissan to create a new market with second-life batteries,” said Sumitomo Corporation executive vice president Kazuo Ohmori. “In coming years, our social commitment is to contribute to the substantial reduction of carbon dioxide. I believe this new potential venture could help us fulfill our social commitment.”
Nissan said the venture would enable it to achieve high residual values for electric car batteries and support its commitment to reducing the environmental impact of automobiles. For Sumitomo, second-life batteries will augment a wide range of its existing businesses, such as raw materials supply, car leasing, logistics and recycling.
Today’s announcement commits both companies to a joint feasibility study to establish a framework for a new joint venture company, which is expected to be operational by late 2010, in Japan and the United States. In Europe, Nissan will explore the 4R business model with alliance partner, Renault. A task force will work to finalise details such as the shareholding structure, capital investment, business structure and other operational concerns for the joint venture.
“This direct management of the battery’s entire value chain is important to ensure that our EV customers do not bear the cost of the battery,” said Hideaki Watanabe, head of Nissan’s zero emission business unit.
“Nissan is exploring several options including battery lease or credit model based on a monthly payment scheme. With this proposition, the total running cost, which equals the monthly battery payment plus the cost to charge the battery, is comparable to the cost to refuel a similar gasoline-powered car. Ultimately, this is a compelling economic proposition for a zero emission car that meets all your driving needs.”
