• Niall Riddell, CEO & Co-founder at Paua & co-host Chris Sass speaks to Matthew Lumsden, CEO of Connected Energy, about ‘pioneering the afterlife of EV batteries’.
• Link in blog to full episode

Connected Energy - reusing EV batteries

Connected Energy, a company focused on reusing electric vehicle batteries, takes batteries that have reached the end of their useful life in an EV and repurposes them for stationary energy storage systems. The determining factor for when a battery's life ends is whether it can still provide sufficient utility for driving an EV.

Connected Energy typically takes batteries that are around 15-20% degraded and moves them into their systems. The company uses the entire battery pack, without changing any modules or technology, and builds multiple batteries into a single system. They receive batteries from OEMs or battery manufacturers, who often test the batteries for suitability. The liability for the battery's life cycle typically stays with th

e OEM, although there is a growing trend for OEMs to maximize the value of first life, second life, and end-of-life recycling. While the supply of batteries is expected to ramp up significantly from 2026, Connected Energy is already working with multiple battery manufacturers and investors to secure a steady supply. The company combines used batteries from electric vehicles to create energy storage systems.

The batteries are tested and then integrated into containers, which can be deployed on industrial and commercial sites. The company is also working on larger utility-scale systems. The batteries from different EV manufacturers can be used interchangeably, but different brands may require different container formats. The performance of the batteries is optimised based on their specific use case, whether it's grid stabilisation or backup power.

The company operates and maintains the systems, but also works with third-party specialists for trading and flexibility services. One example of their system is deployed at Cranfield University, where it helps manage PV generation and provide resilience in case of grid failure. The company expects the systems to have a similar lifespan to EV batteries and has a lower carbon impact compared to new lithium-ion systems. They have installations in the UK, Belgium, Germany, the Netherlands, and Sweden.

‍The warranty and performance challenges of second-life batteries

‍The company plans to deploy systems with multi-megawatt capacity next year, using shipping containers to house the batteries. They are working on creating partnerships and a scalable business model to support the growth of the industry.

The challenge lies in providing warranties and performance guarantees for second-life batteries, but they are confident in their ability to provide equivalent functionality and attract investment. They foresee a future where automotive companies partner with them to manage legacy batteries after their vehicle life.

‍Residual values - battery based vehicle financing

‍Matthew is keen to highlight the possibility of reusing batteries that still have residual life in them after being used in electric vehicles for a certain period of time.

The potential for adding a residual value to the battery, can lower the cost of financing for future vehicle buyers. There is also the importance of developing partnerships and supply chain systems to facilitate the reuse of these batteries. Matthew plans to switch from a petrol car to an electric one or rely more on public transport.

‍Full Epiosde of Insiders Guide to Energy EV Series can be found here

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