Volvo Energy has acquired a ten percent stake in UK-based, second-life battery energy storage specialist Connected Energy with the aim of establishing a circular business model for returned batteries from Volvo Group electric vehicles.
In announcing the £4M investment Joachim Rosenberg, President Volvo Energy said, “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.”
The aim is to minimise the environmental impact of the batteries that have powered Volvo Group vehicles. By repurposing the batteries, says Rosenberg “we obtain the full value from them – from a climate, environment and business perspective.”
Matthew Lumsden, CEO Connected Energy added, “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 optimise the potential for battery reusage and ensure that the resources in the batteries are used effectively.”
Volvo Energy is one of five new investors, the others being Caterpillar Venture Capital, the Hinduja Group, Mercuria, and OurCrowd to join existing investors Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund.