Volvo Invests $4.9 million In Connected Energy For Second Life Battery Business

Volvo Energy is investing about 50 million Swedish kronor (SEK) or $4.9 million for 10 percent in the UK-based second-life battery energy storage specialist Connected Energy.

Joachim Rosenberg, President, Volvo Energy, said, “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.” Second life batteries refers to extending the lifespan of EV batteries usually by redeploying them in other uses, including stationary storage, before eventually  sending them for recycling.

Rosenberg further held, “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.”

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Matthew Lumsden, Chief Executive Officer, Connected Energy, stated, “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. Our collaboration will enable us to optimize the potential for battery re-usage and ensure that the resources in the batteries are used effectively.”

Volvo is not the only one investing in Connected Energy. It is joined by Caterpillar Venture Capital, The Hinduja Group, Mercuria and OurCrowd. Connected Energy also has existing investors – Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund.

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Volvo had announced a week ago that the company will be assembling its Volvo CX40 Recharge in the Hosakote plant situated in new Bengaluru, Karnataka. The automaker said that the electric vehicle will be launched in July this year while the commercial deliveries will begin by October.

In a fresh organizational development in Volvo, Lex Kerssemakers who headed the commercial operations of Volvo is stepping down after an association of almost four decades with Volvo. The company will also be appointing Johan Ekdahl as interim CFO and Brnorn Annwall – the current CFO – will be Chief Commercial Officer and Deputy CEO of Volvo.