Sweden’s Volvo Energy has announced an investment in the UK-based, second-life battery energy storage specialist Connected Energy in order to further accelerate Volvo Group’s battery business and sustainability opportunities.
It is investing approximately SEK 50 M for 10 percent in the company.
Connected Energy has proven that second life vehicle batteries can be used in commercial battery storage systems. It has sixteen operational systems across Europe: Belgium, Germany, the Netherlands and the UK, with its largest in Bedfordshire, England.
Volvo Energy is one of five new investors including Caterpillar Venture Capital Inc., the Hinduja Group, Mercuria, OurCrowd to join existing investors of Connected Energy; Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund.
Joachim Rosenberg, President Volvo Energy, says: “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 has powered Volvo Group vehicles. By repurposing the batteries, we obtain the full value from them – from a climate, environment and business perspective.”
Matthew Lumsden, CEO Connected Energy, adds: “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 reusage and ensure that the resources in the batteries are used effectively.”
The Volvo Group, based in Gothenburg, offers transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, and financing services.