Hyundai Motor Group has selected Wärtsilä for a technology and commercial partnership designed to utilize second-life electric vehicle batteries for the growing energy storage market. The global partnership will combine HMG’s expansion in electric vehicles with Wärtsilä’s growing energy business, which includes 67 GW of installed power plants and advanced energy storage technologies and software created through the acquisition of Greensmith Energy.
The partnership will target advanced energy storage products and platforms that maximize HMG’s second-life EV batteries to be commercialized in Wärtsilä’s existing customer and channel networks across 177 countries globally. Wärtsilä sold close to 4 GW of power plants in 2017 in both developed and developing regions of the world.
The partnership will create a growing business and market for advanced energy storage systems and target both utility-scale and commercial applications suitable for second-life EV batteries. The associated business model and collaboration will pursue the establishment of a continuous, global supply chain that leverages key OEM relationships to take a holistic approach from battery manufacturing, EV applications and energy storage redeployments as well as recycling of materials.
In 2025, there will be 29 GWh of second-life EV batteries available, far exceeding the size of today’s stationary storage market, with 10 GWh currently available for storage application. This presents a blue ocean in the new energy business that the partnership between HMG and Wärtsilä aims to capitalize on.
Hyundai Motor Group is developing a 1MWh-level ESS that utilizes Hyundai IONIQ Electric’s and Kia Soul EV’s second-life battery by using its proprietary technology and has implemented a demonstration project in Hyundai Steel’s factory.
