Wärtsilä and Hyundai have embarked on a new partnership that will use second-life electric vehicle (EV) batteries in the energy storage market.
The two companies have signed a technology and commercial partnership deal that will combine Hyundai’s EV technology expertise with Wärtsilä’s energy business.
The partnership will aim to sell advanced energy storage products and platforms based on Hyundai’s second-life EV batteries through Wärtsilä’s existing global customer channels and networks. It will create a growing market for second-life EV batteries in both utility-scale and commercial applications.
“Energy storage is the logical next step in the after-market use of EV batteries,” said Dr. Youngcho Chi, Executive Vice President of Strategy & Technology Division and Chief Innovation Officer of Hyundai Motor Group. “By repurposing resource-intensive products like EV batteries, we eliminate disposal costs and extend the value of the R&D investment that goes into manufacturing the technology.
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 the two firms hopes to capitalise on.