What will happen to lithium-ion batteries once they have been used in electric cars? Nissan and Sumitomo Corporation believe they can find the answer.
The two companies are planning to initiate a business venture to “Reuse, Resell, Refabricate and Recycle” lithium-ion batteries, in what is known simply as the 4R business model.
The idea is that the batteries will be given a second life as energy storage solutions in markets worldwide. The model has been designed to capitalise on the supply of reusable lithium-ion batteries as electric cars achieve more widespread marketplace acceptance with demand in Japan for second-life batteries expected to reach the equivalent of 50,000 electric cars per year at the minimum by 2020.
By making this announcement, Nissan-Sumitomo are committing to a joint feasibility study to establish a framework for a joint venture company that would be operational by late 2010 in Japan and the United States. As for Europe, Nissan hopes to explore the 4R business model with its Alliance partner Renault.
It is believed that second-life batteries offer an ideal solution for the renewable energy sector as they allow energy to be stored for later use. By applying these batteries on a large scale, there could be a significant net reduction of carbon dioxide (CO2).
According to Nissan and Sumitomo, the 4R battery venture would be a win for each company – for Nissan it will enable high residual values for electric car batteries and support its ongoing efforts to reduce the environmental impact of its cars; while for Sumitomo, the second-life batteries augment a wide range of existing businesses including raw materials supply, logistics, car leasing and recycling.
