Aiming to initiate second-life business for Electric car batteries

Collaboration with Nissan

Amid growing concerns over threats to the global environment such as global warming and exhaustion of energy resources, people are increasingly looking to eco-cars to help solve our problems. In particular, electric vehicles (EV) offer a radical solution: realizing a zero-emission society by replacing gasoline-powered cars with EV. Accordingly, the EV market has begun to expand, as exemplified by the commercial launch of Nissan LEAF, bringing the first 100% electric-powered vehicle to the mass market.

In order to create and expand the EV market, a number of challenges need to be overcome. One of the major challenges is the cost of the lithium-ion batteries. We thought that an establishment of a new market which effectively utilizes the EV-mounted lithium-ion batteries with high residual values would accelerate the dissemination of EV. This is because second-life business for EV batteries would make it possible to reduce customer’s expenses. Recognizing the tremendous business opportunity presented here, Sumitomo Corporation has launched the 4R* business project in collaboration with Nissan Motor.
* 4R stands for “Reuse,” “Refabricate,” “Resell” and “Recycle.”

Lithium-ion batteries mounted on the Nissan LEAF retain approximately 80% of their initial capacity even after five years of use under normal conditions, sufficient enough for second-life uses. Under the new joint project Sumitomo Corporation endeavors to initiate second-life business for EV batteries with long life cycle and high energy density, by developing a brand-new system that would enable their use for a variety of purposes.

An EV future

The shift to a society based on clean energy generated by the shift from gasoline-fueled vehicles to EV will inevitably entail numerous changes to our everyday life as well as to business and industry. For example, shopping malls and roadside family restaurants might consider installing a charging station in the expectation that EV drivers will spend money on their goods and services while waiting for their batteries to charge. Given the recent move by a major electronics retailer to start selling EV, further expansion of EV sales channels is foreseen. With these and other likely developments, EV may very well drive the future growth of the automotive industry, which has conventionally been supported by a wide range of related industries, drawing in additional support from other sectors. This envisioned evolution is expected to materialize in Japan, a global leader in EV development, ahead of other parts of the world. We anticipate that the shift to EV would significantly elevate Japan’s strength.

Next＞＞＞Every home equipped with a power storage unit / Based on Sumitomo’s business philosophy