Volvo Energy invests $4.9M in Connected Energy for second-life battery business; 10% stake
In its mission to support and secure an attractive and sustainable circular business model for batteries, Volvo Energy is investing approximately SEK 50 million (US$4.9 million) for a 10% stake in the UK-based second-life battery energy storage specialist Connected Energy. The investment came as part of a £15-million (US$18.4-million) round.
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. 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.
—Joachim Rosenberg, President Volvo Energy
Volvo Energy is one of five new investors including Caterpillar Venture Capital Inc.; the Hinduja Group; Mercuria; and OurCrowd to join existing investors of Connected Energy: Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund.
Volvo Energy is a business area within the Volvo Group dedicated to providing essential support and infrastructure during the first-life, i.e. when batteries are mounted on vehicles, while subsequently securing reliable and sustainable second-life opportunities prior to battery recycling.
With its headquarters in Newcastle upon Tyne, Technical Center in Norfolk and systems operational in the UK, Belgium, Germany and Netherlands, Connected Energy has sixteen operational systems across Europe: Belgium, Germany, the Netherlands and the UK with its largest at Cranfield University in Bedfordshire, England.
Here the system allows the site to balance its energy behind the grid, accommodate a newly enlarged solar farm and an air source heat pump on the district heating to reduce reliance on the gas-combined heat and power system (CHP). At other sites such as those in Germany, Connected Energy’s units are helping to balance the energy supply where EV chargers are used on either side of a motorway.