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Commercialization of used vehicle batteries - Battery 2nd life business opportunities for the heavy duty vehicle sector

Jonsson Larsson, Fredrik LU (2016) In IIIEE Masters Thesis IMEN41 20162
The International Institute for Industrial Environmental Economics
Abstract
The purpose of this thesis was to determine how a heavy duty vehicle manufacturer can create an economical viable business model for used batteries from electric buses and trucks. Heavy duty vehicles are responsible for 30% of on-road CO2 emissions in the European Union, but could be decreased if this sector would be electrified. One major barrier for this transition is the large cost for the batteries used in this type of vehicles, which deters customer from purchasing them. At the same time, the battery still has a lot of capacity left at its end-of-life. If the electric vehicle manufacturer were to take back these batteries and repurpose them to become suitable in other less demanding applications, new revenue streams could be created.... (More)
The purpose of this thesis was to determine how a heavy duty vehicle manufacturer can create an economical viable business model for used batteries from electric buses and trucks. Heavy duty vehicles are responsible for 30% of on-road CO2 emissions in the European Union, but could be decreased if this sector would be electrified. One major barrier for this transition is the large cost for the batteries used in this type of vehicles, which deters customer from purchasing them. At the same time, the battery still has a lot of capacity left at its end-of-life. If the electric vehicle manufacturer were to take back these batteries and repurpose them to become suitable in other less demanding applications, new revenue streams could be created. This additional value could be used to lower the cost for electric vehicles. The needed steps and activities, as well as associated costs and potential partners in the supply chain was investigated by studying academic literature and company reports, and by interviewing industry experts. The main findings were that used batteries could be repurposed by an electric heavy duty vehicle manufacturer to a cost in general lower than the potential monetary benefit. This indicate the potential to create an economical viable business model. This could be realized by setting up a small repurposing facility, combined with a scheme for collection and transportation. Initially business model would focus on selling repurposed battery packs directly to partners in the supply chain for small scale applications at the residential level. Interesting applications for further research would be mobile fast chargers for electric vehicles and energy storage for retrofitted electric ferries. (Less)
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author
Jonsson Larsson, Fredrik LU
supervisor
organization
alternative title
How the un-dead batteries will power the earth
course
IMEN41 20162
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Electric buses and trucks, 2nd life batteries, battery second use, repurposing costs, energy storage
publication/series
IIIEE Masters Thesis
report number
2016:29
ISSN
1401-9191
language
English
id
8893798
date added to LUP
2016-10-24 09:13:59
date last changed
2016-11-29 12:58:27
@misc{8893798,
  abstract     = {The purpose of this thesis was to determine how a heavy duty vehicle manufacturer can create an economical viable business model for used batteries from electric buses and trucks. Heavy duty vehicles are responsible for 30% of on-road CO2 emissions in the European Union, but could be decreased if this sector would be electrified. One major barrier for this transition is the large cost for the batteries used in this type of vehicles, which deters customer from purchasing them. At the same time, the battery still has a lot of capacity left at its end-of-life. If the electric vehicle manufacturer were to take back these batteries and repurpose them to become suitable in other less demanding applications, new revenue streams could be created. This additional value could be used to lower the cost for electric vehicles. The needed steps and activities, as well as associated costs and potential partners in the supply chain was investigated by studying academic literature and company reports, and by interviewing industry experts. The main findings were that used batteries could be repurposed by an electric heavy duty vehicle manufacturer to a cost in general lower than the potential monetary benefit. This indicate the potential to create an economical viable business model. This could be realized by setting up a small repurposing facility, combined with a scheme for collection and transportation. Initially business model would focus on selling repurposed battery packs directly to partners in the supply chain for small scale applications at the residential level. Interesting applications for further research would be mobile fast chargers for electric vehicles and energy storage for retrofitted electric ferries.},
  author       = {Jonsson Larsson, Fredrik},
  issn         = {1401-9191},
  keyword      = {Electric buses and trucks,2nd life batteries,battery second use,repurposing costs,energy storage},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Masters Thesis},
  title        = {Commercialization of used vehicle batteries - Battery 2nd life business opportunities for the heavy duty vehicle sector},
  year         = {2016},
}