The partnership will target advanced energy storage products and platforms that maximize Hyundai’s second-life EV batteries to be commercialized in Wärtsilä’s existing customer and channel networks across 177 countries globally.
The long-term partnership will create a 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.
“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 Hyundai Motor Group and Wärtsilä aims to capitalize on.
“Wärtsilä, through the capabilities and integration experience of Greensmith Energy, will develop a cleaner and more powerful approach to second-life battery applications for Hyundai Motor Group,” said Javier Cavada, President of Wärtsilä Energy Solutions.
Hyundai Motor Group is working on development of a 1MWh-level ESS that utilizes Hyundai IONIQ Electric and Kia Soul Electric’s second-life battery by using its proprietary technology and has implemented a demonstration project in Hyundai Steel’s factory.
Image caption: (from left) Javier Cavada, President of Energy Solutions at Wärtsilä, Dr. Youngcho Chi, Executive Vice President of Strategy & Technology Division and Chief Innovation Officer at Hyundai Motor Group, John Jung, President & CEO at Greensmith Energy
