Techno-Economic Analysis of PEV Battery Second Use: Repurposed-Battery Selling Price and Commercial and Industrial End-User Value

Jeremy Neubauer

Research output: Contribution to conferencePaper


Accelerated market penetration of plug-in electric vehicles and deployment of grid-connected energy storage are restricted by the high cost of lithium-ion batteries. Research, development, and manufacturing are underway to lower material costs, enhance process efficiencies, and increase production volumes. A fraction of the battery cost may be recovered after vehicular service by reusing thebattery where it may have sufficient performance for other energy-storage applications. By extracting post-vehicle additional services and revenue from the battery, the total lifetime value of the battery is increased. The overall cost of energy-storage solutions for both primary (automotive) and secondary (grid) customer could be decreased. This techno-economic analysis of battery second useconsiders effects of battery degradation in both automotive and grid service, repurposing costs, balance-of-system costs, the value of aggregated energy-storage to commercial and industrial end users, and competitive technology. Batteries from plug-in electric vehicles can economically be used to serve the power quality and reliability needs of commercial and industrial end users. However, thevalue to the automotive battery owner is small (e.g., $20-$100/kWh) as declining future battery costs and other factors strongly affect salvage value. Repurposed automotive battery prices may range from $38/kWh to $132/kWh.
Original languageAmerican English
Number of pages13
StatePublished - 2012
Event2012 SAE World Congress and Exhibition - Detroit, Michigan
Duration: 24 Apr 201226 Apr 2012


Conference2012 SAE World Congress and Exhibition
CityDetroit, Michigan

Bibliographical note

Posted with permission

NREL Publication Number

  • NREL/CP-5400-53799


  • batteries
  • electric vehicles
  • energy storage
  • Li-ion
  • lithium ion
  • plug-in hybrid
  • repurposing
  • second use


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