American Electric Power (AEP) and Honda have agreed to explore possible uses for used electric vehicle (EV) batteries, including renewables integration, while also seeking to address “multiple challenges” related to growing electrified transportation.
The companies on May 15 announced Honda will provide used Fit EV batteries to AEP, for research aimed at helping the companies “develop technology and standards for future vehicle grid integration,” as well as new business models surrounding EVs.
With millions of EVs expected to be hitting the roads soon, automakers and the energy industry are preparing for a stream of used batteries. Nissan, Hyundai and BMW all announced partnerships involving used batteries last year.
There are slightly more than 1 million EVs on the road in the United States, but that figure is expected to rise quickly. As it does, a steady stream of used batteries no longer suitable for vehicles will become available for use in a range of energy storage applications at discounted prices.
Experts say a typical EV battery would be replaced after about 10 years, having lost about 10% to 15% of its capacity. But these batteries can still have years of life left in them for other applications, and Honda and AEP say they see opportunities to improve energy security, reduce carbon dioxide emissions and prepare for broad scale electrification of transportation.