Volvo Energy invests in second-life battery energy storage specialist
By Becky Schultz17 June 2022
Volvo Energy has invested approximately SEK 50 M (nearly $5 million USD) in UK-based Connected Energy, a second-life battery energy storage specialist, as part of its mission to support and secure an attractive and sustainable circular business model for batteries. Representing a 10% share in the company, the investment is intended to further accelerate Volvo Group’s battery business and sustainability opportunities.
Volvo Energy is a business area within the Volvo Group dedicated to providing support and infrastructure throughout a battery’s first life (i.e., when mounted on vehicles), while securing reliable and sustainable second-life opportunities prior to battery recycling. Connected Energy is one of a limited number of companies globally to have shown that second-life vehicle batteries can be used in commercial battery storage systems.
“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,” stated Joachim Rosenberg, president, Volvo Energy, in the investment announcement. “Together with Connected Energy, we will minimize the environmental impact of the batteries that have powered Volvo Group vehicles. By repurposing the batteries, we obtain the full value from them – from a climate, environment and business perspective.”
“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,” said Matthew Lumsden, CEO, Connected Energy. “Our collaboration will enable us to optimize the potential for battery reusage and ensure that the resources in the batteries are used effectively.”
Volvo Energy is one of five entities to join Engie New Ventures, Macquarie and the Low Carbon Innovation Fund as an investor in Connected Energy. Other new investors include Caterpillar Venture Capital Inc., the Hinduja Group, Mercuria and OurCrowd.