NEW CUYAMA, Ca. – On a 20-acre parcel outside the tiny Southern California town of New Cuyama, a 1.5-megawatt solar farm uses the sun’s rays to slowly charge nearly 600 batteries in nearby cabinets. At night, when energy demand rises, that electricity is sent to the grid to power homes with clean energy.

To make renewable energy from intermittent sources like solar and wind available when it is most needed, it’s becoming more common to use batteries to store the power as it’s generated and transmit it later. But one thing about the Cuyama facility, which began operations this month, is less common: The batteries sending energy to the grid once powered electric vehicles.

The SEPV Cuyama facility, located about two hours northeast of Santa Barbara, is the second hybrid storage facility opened by B2U Storage Solutions. Its first facility, just outside Los Angeles, uses 1,300 retired batteries from Honda Clarity and Nissan Leaf EVs to store 28 megawatt-hours of power, enough to power about 9,500 homes.

The facilities are meant to prove the feasibility of giving EV batteries a second life as stationary storage before they are recycled. Doing so could increase the sustainability of the technology’s supply chain and reduce the need to mine critical minerals, while providing a cheaper way of building out grid-scale storage.

“This is what’s needed at massive scale,” said Freeman Hall, CEO of the Los Angeles-based large-scale storage system company.

Electric vehicle batteries are typically replaced when they reach 70 to 80 percent of their capacity, largely because the range they provide at that point begins to dwindle. Almost all of the critical materials inside them, including lithium, nickel, and cobalt, are reusable. A growing domestic recycling industry, supported by billions of dollars in loans from the Energy Department and incentives in the Inflation Reduction Act, is being built to prepare for what will one day be tens of millions of retired EV battery packs.

Before they are disassembled, however, studies show that around three-quarters of decommissioned packs are suitable for a second life as stationary storage. (Some packs may not have enough life left in them, are too damaged from a collision, or are otherwise faulty.)

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