Last week, a company called B2U Storage Solutions announced that it had started operations at a 25 Megawatt-hour battery facility in California. On its own, that isn’t really news, as California is adding a lot of battery power. But in this case, the source of the batteries was unusual: Many of them had spent an earlier life powering electric vehicles.
The idea of repurposing electric vehicle batteries has been around for a while. To work in a car, the batteries need to be able to meet certain standards in terms of capacity and rate of discharge, but that performance declines with use. Even after a battery no longer meets the needs of a car, however, it can still store enough energy to be useful on the electric grid. So it was suggested that grid storage might be an intermediate destination between vehicles and recycling.
But there are some significant technical and economic challenges to implementing the idea. So we talked with B2U’s CEO, Freeman Hall, to find out why the company decided it was the right time to put the concept into action.
Supply and demand
While the idea may go back a while, implementing it required two things: a steady supply of end-of-life car batteries and a regular excess of cheap power to charge the batteries with. Hall said his company started with solar project installs in California and began to see what’s called the “duck curve,” where solar generation starts to occur in excess in the mid-afternoon. The growth of electric vehicles had also started to ensure there was a steady supply of high-quality batteries to store the power in. “We’re in the early days of the end-of-life EV batteries being available,” Hall said. “But there has been a steady stream of those batteries becoming available.”
Even after heavy usage in cars, the batteries can often hold a significant amount of charge. And, by working with battery OEMs, B2U is getting access to a number of batteries that never spent much time in cars. “They do have some powertrain warranty dynamics where they’re replacing batteries that didn’t meet certain promise specs, and there have been some pack replacement programs for some of the early vehicles like the Leaf,” Hall said. “There are R&D batteries that are out there, they’re going to use for R&D and then becoming available. There are other sort of industry growing pains where you get some batteries that are produced that don’t quite meet specs for automotive use that can still be used for stationary storage.”
The result is a growing collection of batteries that can still hold roughly 65-85 percent of their original capacity but can no longer provide the performance expected for automotive use. While the performance will continue to degrade over time, grid-level power storage doesn’t require the rapid charge or discharge behavior that puts the most stress on the battery’s capacity. So the company expects to get significant use from them before they’re sent on for recycling. “These batteries work very well,” Hall told Ars. “They’re engineered for very demanding use cases, and the use case in stationary storage is far less demanding.”
Come as you are
To save on costs, B2U is using the batteries as intact packs, rather than breaking out the cells and installing them in a new housing. To do so, it has had to build a translation layer that sits between the software that manages the storage facility and the battery management system on the battery. This layer serves several purposes. It controls the battery’s charging and discharging and helps monitor the health of individual batteries, flagging situations where there are potential problems that can affect future performance.
The company is very cautious about how its software responds to any issues. “We’re setting ‘guard rails,’ if you will, that are fairly conservative,” Hall said. “Those are set far inside even the sort of nameplate specs that the OEMs provide. If anything was to ever get to our guard rails, we just shut down the batteries automatically.”
The translation layer also ensures that the general commands issued by the facility-control software get translated into the specific commands needed by batteries from different manufacturers. The California facility is using batteries built for Honda and Nissan vehicles, and B2U says it has tested its software on batteries made for GM and Tesla as well.
Understanding how a battery’s capacity has declined is essential for the facility’s operation. Hall said that, during charging, the company’s software has to recognize when an individual pack has reached its capacity and tell it to disconnect at that point to allow the stronger batteries to continue charging. Conversely, the system must handle batteries with differing amounts of capacity as the system discharges, allowing those that have emptied their capacity to drop out even as the facility as a whole continues to discharge.
All of that has to be handled seamlessly so that the 1,300 individual battery packs, all with distinct performance characteristics, look like a single unit from the grid’s perspective. Right now, the company is primarily focused on storing power generated by solar panels (the battery is located at a solar facility) and selling it in the evening as the Sun is setting.
Even second lives end
While grid-level storage can handle lower performance than cars, performance declines will eventually drop these batteries below the levels that make using them practical. Hall said the company is already working to ensure that end-of-life for the battery doesn’t mean end-of-life for the materials they contain. “We’re definitely working with OEMs and with the recyclers to make sure that that life-cycle management activity is handled properly,” he said. “Reuse needs to be fitting hand in glove with the recycling so that it’s all handled very effectively.”
Beyond that, the company expects that battery availability will only grow and is looking at expanding wherever solar is popular. Right now, that means it’s focused on California and Texas, but Hall doesn’t expect it to stay that way: “Solar is the cheapest form of energy in just about all 50 states, and you’re going to see the storage follow behind it.”