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Driving to the future of energy storage: Techno-economic analysis of a novel method to recondition second life electric vehicle batteries

Journal Article · · Applied Energy
 [1];  [2];  [3];  [3];  [4];  [4];  [2]
  1. Colorado State University, Fort Collins, CO (United States); University of California, San Diego
  2. Colorado State University, Fort Collins, CO (United States)
  3. Utah State University, Logan, UT (United States)
  4. University of California San Diego, La Jolla, CA (United States)
The transportation sector is trending towards electrification which means a dramatic change to the availability of used Lithium-ion (Li-ion) batteries which can be reused for grid energy storage systems (ESS). However, second life battery modules can have an imbalanced state of health (SOH) between cells which can reduce battery safety, life, and depth of discharge. This work evaluates the economics of a novel Heterogeneous Unifying Battery (HUB) reconditioning system that cycles battery modules to unify cells’ SOH to improve their second life battery performance. The HUB reconditioning cycles can be performed in one of two ways: recondition with grid services or recondition through energy shuffle. The results from this work demonstrate that a simple repurposing process will likely have a lower second life resale price ($$\$$56$ /kWh) than the HUB system ($$\$$62$ /kWh) in our baseline scenario; however, in our target scenario the HUB system ($$\$$34$ /kWh) has a lower resale price than the repurposing system ($$\$$38$ /kWh). This work also includes an economic analysis for using reconditioned batteries in a grid ESS that was compared to an ESS that is assembled with new Li-ion batteries. Results show that HUB reconditioned ESS require less grid revenue ($$\$$194$ /kW-year) than new Li-ion ESS ($$\$$253$ /kW-year). Lastly, the HUB reconditioned ESS is shown to be economically feasible in 63% of frequency regulation, 18% of transmission congestion relief, and 16% of demand charge reduction markets but not economically feasible in spin/non-spin reserve, voltage support, and energy arbitrage markets.
Research Organization:
University of California San Diego, La Jolla, CA (United States)
Sponsoring Organization:
USDOE Advanced Research Projects Agency - Energy (ARPA-E)
Grant/Contract Number:
AR0001045
OSTI ID:
2409204
Alternate ID(s):
OSTI ID: 1848353
OSTI ID: 23187060
Journal Information:
Applied Energy, Journal Name: Applied Energy Vol. 295; ISSN 0306-2619
Publisher:
ElsevierCopyright Statement
Country of Publication:
United States
Language:
English

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