Volvo Energy invests in Connected Energy for second life battery business
Volvo Energy is investing about SEK 50 M for 10 percent in the UK-based second-life battery energy storage specialist Connected Energy. The Swedish firm aims to support and secure an attractive and sustainable circular business model for batteries in the coming years.
"There is a great deal of untapped potential in the second-life use of batteries. This forward-leaning investment aims to facilitate the scaling-up of second-life battery energy storage systems and further secure circular business opportunities for the forthcoming ramp-up in Volvo Group's second-life battery returns," said Joachim Rosenberg, President Volvo Energy.
"Together with Connected Energy, we will minimize the environmental impact of the batteries that has powered Volvo Group vehicles. By repurposing the batteries, we obtain the full value from them – from a climate, environment and business perspective", he added.
Volvo Energy is a business area within the Volvo Group dedicated to providing essential support and infrastructure during the first-life, especially when batteries are mounted on vehicles, whilst subsequently securing reliable and sustainable second-life opportunities prior to battery recycling.
Consequently, the company vows to optimize first-life, creates and prolongs the second-life opportunities and thereby expanding the value creation from a climate, environment and business perspective.
Connected Energy is one of few companies in the world to have proven that second life vehicle batteries can be used in commercial battery storage systems. The company has sixteen operational systems across Europe, including the ones located in Belgium, Germany, the Netherlands and the UK with its largest at Cranfield University in Bedfordshire, England.
"We couldn't be more pleased to welcome our new investor Volvo Energy on board and look forward to forging a path to increasing the sustainability of both electric vehicles and grid connected energy storage. Our collaboration will enable us to optimize the potential for battery reusage and ensure that the resources in the batteries are used effectively," said Matthew Lumsden, CEO Connected Energy.
Volvo Energy is one of five new investors including Caterpillar Venture Capital Inc., the Hinduja Group, Mercuria, OurCrowd to join existing investors of Connected Energy - Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund.
