On the potential of vehicle-to-grid and second-life batteries to provide energy and material security

Abstract

The global energy transition relies increasingly on lithium-ion batteries for electric transportation and renewable energy integration. Given the highly concentrated supply chain of battery materials, importing regions have a strategic imperative to reduce their reliance on battery material imports through, e.g., battery recycling or reuse. We investigate the potential of vehicle-to-grid and second-life batteries to reduce resource use by displacing new stationary batteries dedicated to grid storage. Based on dynamic material flow analysis, we show that equipping around 50% of electric vehicles with vehicle-to-grid or reusing 40% of electric vehicle batteries for second life each have the potential to fully cover the European Union’s need for stationary storage by 2040. This could reduce total primary material demand from 2020–2050 by up to 7.5% and 1.5%, respectively, which could ease geopolitical risks and increase the European Union’s energy and material security. Any surplus capacity could be used as a strategic reserve to increase resilience in the face of emergencies such as blackouts or adverse geo-political events.