Re-use & Second Use of advanced rechargeable batteries for e-mobility in Europe.

6th. WRBRF - 2015 Berlin, GermanyMarch 23-24, 2015

PPT 8.1.

Follow-up of WRBRF, May 2013

Can it be a realistic option for EV-batteries life cycle extension prior to recycling, to meet the EU

Resource and Energy Efficiency objectives ?

6th. WRBRF - 2015 Berlin, GermanyMarch 23-24, 2015

PPT 8.1.

Follow-up of WRBRF, May 2013

Prior to answering that question...

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• A couple of considerations should be examined:1. What’s the market going to look like ?2. What does the law say ? 3. What’s the availability of batteries ?4. Does it make sense technologically ?5. Does it make sense economically ?

• Show a few business examples• Present our current position

Can it be a realistic option for EV-batteries life cycle extension prior to recycling, to meet the Resource and Energy Efficiency objectives ?

1. The market expectation of industry & government of e-mobility by 2020

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Germany< 30,000 units in 2015(IQPC-de)

2. Legislation: terms used in litterature

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Re-use

Re-purposing

Re-building

Re-manufacturing

Re-conditioning

Second hand

Second use

Re-pairing

Re-labelling

Re-designing

Double use

Each of these ‘actions’ have different legal & economic implications for the seller, the buyer, and the user !

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2. Legislation: terms defined !

No definition

3. Legislation - EU Political context

The Roadmap to a Resource Efficient Europe concludes that if waste is to become a resource to be fed back into the economy as a raw material, then much higher priority needs to be given to re-use and recycling.

The 2020 milestone for the EU should be to achieve a state where waste is managed as a resource.

.

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< EU Commission Fitness Check of the waste regulations - during 2013 - 2014 >

Priority according the Waste hierarchy

Extend product life re-use recycle

Return Rate <<<

Rate of POM

Sales of electric cars started slowly from 2010 onwards and is expected to take-off by 2020

20102010 20202020 2025 ~2025 ~20152015

unitsunits

yearyear

salessales ELV & recyclingELV & recycling

Car Service Life 10-15 years

3. Availability of EV-batteries (schematic view)

gap

gap

Warranty – quality control returns to OEM

4. Does it make sense technologically ?

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(Reference: Batteries2014)

4. Does it make sense technologically ?

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• Stationary battery packs with the latest technology might be more reliable and better than a 12-year old used battery (how used ?)

• This battery was initially designed for an automotive or industrial mobile application

• As an old and used battery, this battery has to be converted to a stationary application (including BMS)

Does it make sense from a technologically point-of-viewto put an old battery technology in a new high-tech device ?

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5. Does it make sense economically ?

Ref. ICBR2014

Also an issue for the

recycling industry !

Prices of battery materials are decreasing

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The constant market price decrease of Li batteries, makes each battery manufactured 10 years ago not very competitive

IERC 2015 - Salzburg – DELL presentation

• Challenges for a circular economy: use resources more effectively

• Sometimes re-use only possible if transfer from customer in one country to refurbishment in another country

• Less valuable materials in the products

• Large volumes are lost out of the formal waste streams

• Basel convention: current proposed guidance does not promote re-use

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These considerations give an indication...

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1. What’s the market going to look like ? Optimistic 6-8 million on the road – big uncertainty

2. What does the law say ? Unclear, need for harmonized definitions, legal gap with (extended)

producer responsibilities

3. What’s the availability of batteries ?Depends on the market availability – big uncertainty

4. Does it make sense technologically ?Old technology (10-12 years old at a time of rapid technical battery

developments) in a new stationary device ? Who would want that ?

5. Does it make sense economically ?With the current material values, not likely

And what about ...

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1. Warranty of the original usage / warranty of the re-use or second use who’s responsible ?

2. Insurance policy issues in case of incident (fire)> Battery in the vehicle – part of the vehicle > Battery in the vehicle, used for energy storage at home, or

being charged in the garage at home • Car insurance ?• Home insurance ?

3. Where’s the consumer protection when different parties are involved in producer responsibility issues, product warranty, insurance matters ?

Business example 1: the Renault model

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1. The industrial battery stays in ownership of Renault.

2. The battery is leased.

3. A practical solution to control the complete value chain.

4. It allows Renault to decide whether a battery should be re-used, go for second use, or be offered for recycling.

Key: there’s no basic change of ownership

Business example 2: BMW – BOSCH - Vattenfall

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ProjectBatteries of the BMW i3 will get a second life as buffer storage for solar or wind facilities.To start by end 2015. BMW expects that aftermarket alternatives or

refurbished batteries will hit the market at some time in the future.

Business example 3: Field study by VW

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From November 2013 onwards, VW will equip 20 households in Berlin with electric cars of E-Up type. The cars will be modified, enabling their batteries to feed electricity into the grid. The batteries will be charged in times when solar panels and wind turbines produce large amounts of energy and the price for electricity is low. In times of acute energy shortages, when the price for electricity is very high, the e-car can feed electricity into the grid, enabling their owners to make money.

Combined energy storage to increase demand for electric carsField-study scientifically supported by Fraunhofer

In a pilot project, VW and LichtBlick (Green energy provider) want to use electric cars as forms of energy storage.

Business example 4: e-mobility industrial batteries

Research initiative in the Netherlands

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Business example 5: Ford of North America

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Our current position - Re-use

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oRECHARGE supports the re-use of batteries for their original applications.

oThis requires that quality, performances and safety standards are observed before placing the battery for a second time on the market  

Our current position - Second Use

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oRECHARGE only supports the second use of batteries when the battery remains under the responsibility of the first producer, acting as the first entity placing the battery on the market.oIn absence of a legal basis and clear minimum requirements , RECHARGE does not support second use of batteries, when there is a transfer of ownership, as there are too many unknown factors that could impact product’s reliability and end users safety.