Technology group Wärtsilä and automaker Hyundai Motor Group have signed a technology and commercial partnership to use second-life electric vehicle (EV) batteries towards the growing energy storage market.
The global partnership will combine Hyundai’s expansion in EVs, with Wärtsilä’s growing energy business, which includes 67 GW of installed power plants, as well as advanced energy storage technologies and software through the acquisition of Greensmith Energy.
The partnership will target advanced energy storage products and platforms that maximise Hyundai’s second-life EV batteries to be commercialised in Wärtsilä’s existing customer and channel networks across 177 countries.
The long-term partnership is expected to create a growing business and market for advanced energy storage systems and target both utility-scale and commercial applications suitable for second-life EV batteries.
The associated business model and collaboration will pursue the establishment of a continuous, global supply chain that leverages key original-equipment manufacturer relationships to take a holistic approach involving battery manufacturing, EV applications and energy storage redeployments, as well as the recycling of materials.
“Energy storage is the logical next step in the after-market use of EV batteries,” said Hyundai Motor Group strategy and technology executive VP and chief innovation officer Dr Youngcho Chi.
By repurposing resource-intensive products like EV batteries, we eliminate disposal costs and extend the value of the research and development investment that goes into manufacturing the technology.
Hyundai is strengthening its leadership in clean technology and sustainability by participating in the new energy business, he added.
In 2025, there will be 29 GWh of second-life EV batteries available, far exceeding the size of today’s stationary storage market, with 10 GWh currently available for storage application.
This presents a ‘blue ocean’ in the new energy business that the partnership between Hyundai and Wärtsilä aims to capitalise on.
“Wärtsilä, through the capabilities and integration experience of Greensmith Energy, will develop a cleaner and more powerful approach to second-life battery applications for Hyundai,” said Wärtsilä Energy Solutions president Javier Cavada.
He added that the company’s strategic partnership with Hyundai represents the lifecycle vision Wärtsilä strives to deliver to its customers and partners around the world.
“Incorporating second-life EV batteries into our energy and integration business underscores our deep commitment to building sustainable societies with smart technologies.”