Rein-CAR-nation: Second-Life Electric Vehicle Batteries as Grid Storage at Princeton University

Abstract

Second-life battery storage technology aggregates end-of-life electric vehicle batteries, leveraging their remaining capacity to provide large scale energy storage for the electric grid. Hundreds of millions of electric vehicle batteries will soon be retired from transportation applications and flood nascent lithium-ion battery waste handling supply chains. Second-life storage postpones entry into energy intensive, inefficient recycling processes, buying time for methods to scale and improve. Concurrently, repurposed batteries significantly reduce energy storage costs, allowing for economically viable grid integration of high latency renewable generators like wind and solar. Literature review and industry outreach found second-life technology reduces battery storage costs by up to 70% and embodied carbon emissions by up to 99.6%. Extending these savings to the projected 680 gigawatts of U.S. battery storage capacity in 2050, second-life storage has potential to save up to $450 billion and 74.5 million metric tons of carbon dioxide equivalent emissions. Second-life storage elegantly tackles two crucial climate issues, yet its capital intensity and limited proven success hinders widespread adoption that would generate the significant aforementioned savings. Princeton University’s strong commitment to sustainability, substantial financial resources, and eminent pedigree, position it perfectly as an emerging technology first mover. Princeton utility expenditure modeling highlighted the significant revenue potential of second-life battery integration on campus. By limiting grid electricity import volatility, Princeton’s investment in second-life storage will generate significant profits –up to $36.5 million– with annualized return rates up to 41%. Second-life storage at Princeton will provide much needed credibility for a pivotal climate crisis mitigation technology. Campus second-life deployment offers Princeton the chance to pioneer important battery research, save millions of dollars, and inspire a sustainable storage revolution.