Low-Cost and Scalable Second Use Battery Demonstration in Central California for Equitable United States Based Manufacturing and Job Growth
Second life battery ESS demonstration projects to aid production of Smartville’s Modular Assembly Battery.
Smartville, Inc.
Recipient
Carlsbad, CA
Recipient Location
38th
Senate District
77th
Assembly District
$1,217,174
Amount Spent
Active
Project Status
Project Update
The project team has completed its first phase of this cost-share agreement with the DOE, which included the development of a 500kWh battery energy storage system (BESS) system as part of the Smartville 360 product design, utilizing a total of 8 second-life electric vehicle (EV) battery packs and a newly designed active venting system to mitigate potential thermal runaway events. The team conducted a detailed Failure Mode and Effects Analysis (FMEA) of the new design and a techno-economic analysis (TEA) for the BESS. The team also conducted a thermal runaway burn test and a preliminary Hazard Mitigation Analysis (HMA) in preparation for the future commercialization of the system and securing key standardization milestones to get the system approved by local agencies. The team worked with several project partners on securing deployment sites in San Diego to install the BESS in order to support EV fast charging and the local community. The team is actively working on securing partnerships to strengthen its supply chain of used batteries and conducting a Thermal Runaway Test. The team is also working on sourcing subcomponents for the first production run with a stakeholder discussion on on-site preparation, construction, and permitting for the newly designated deployment locations. Lastly, the team is focusing on designing a distributed production process with a focus on battery qualification to scale the system effectively in the future.
The Issue
California’s goal of 5 million zero-emission vehicles by 2030 will subsequently increase the number of lithium-ion (Li-ion) electric vehicle (EV) batteries that will be retired from vehicle applications. When retired, most of these batteries will not have reached their end of life but are rather no longer fit for the strenuous application of powering a vehicle. However, these batteries can be well suited to be repurposed for stationary energy storage applications. Therefore, this work under this Agreement aims to support a circular economy for Li-ion EV batteries and providing a second life as energy storage supporting grid reliability and resilience.
Typical State-of-the-Art (SOA) repurposing solutions implement a used battery ‘binning’ approach wherein batteries must be tested individually to grade available capacity and then stored until end-product integration. This approach, however, fails to effectively guarantee long-term battery performance and thus lacks commercial viability and scalability.
The cost-effectiveness of reusing second-life EV batteries is hindered by lengthy and costly processes of logistics and repurposing, compromised system performance, and long-term safety and reliability concerns.
Project Innovation
This project will implement two second life BESS demonstration projects and accomplish low-rate initial production of Smartville’s proprietary second life energy storage building block Modular-Assembly-Battery (MOAB). The first demonstration will deploy 3MWh second life battery ESS at two different sites in San Diego, CA, integrating with EV charging stations, and the second demonstration will deploy 500KWh second life battery ESS at Smartville's facility. Both demonstrations will undergo at least 1 year-long testing and data-backed prognostics study. The project will achieve >30% second life ESS cycle life extension compared to SOA, from a combined benefit of life balancing control, data-backed prognostics, and unique second life battery pack integration hardware design. The productization effort will also achieve $100/kWh integrated ESS cost, and production rate of 1 MOAB per day by the project end, with estimated $2500/MT added-value via repurposing. By the end of the project, the Smartville team will achieve key technology and commercialization advancements, specifically: accomplishing low-rate production of one 250 kW rated MOAB unit per day at <$100/kWh cost with domestic manufacturing and US made sub-components. Through the project demonstrations and data analyses from the two project sites, Smartville will validate its performance claim of >30% life extension and 50% battery pack state of health uniformity improvement, compared to current state-of-art, elevating the technology readiness level to 9.
Project Goals
Project Benefits
The project will develop a low-cost and reliable battery energy storage system that utilizes repurposed EV batteries, which can make the cost of energy storage more affordable and attractive for customers. Using repurposed batteries in an energy storage system adds value to retired EV batteries prior to recycling and provides a sustainable energy product to be implemented at a large scale. The Smartville 360 also provides a modular design that can be integrated with multiple form factors, making it more versatile for different use cases.

Equity
Smartville is coordinating with local environmental justice advocates and educational groups to address and quantify community benefits based on the demonstration and estimate potential impacts resulting from broader future deployments. In addition, Smartville is implementing two 1.5 MWh second life battery energy system demonstrations in San Diego, CA, located in and supporting a disadvantaged community.

Energy Security
The demonstration systems will operate in support of the city of San Diego's Climate Action Plan in pursuit of net zero greenhouse gas emissions and improved air quality. At scale, Smartville's EV battery repurposing technology will bring lasting contributions to California's energy infrastructure and support the growth of a more sustainable, resilient, and equitable energy sector.

Environmental Sustainability
During the project period, the demonstration will achieve an estimated 1,500 tons CO2 reduction from reusing EV batteries and storing carbon natural electricity. At scale, the extension of EV battery life in second use applications can result in over 2.6 million tons of annual CO2 reductions by 2030 due to the reduction of battery and supply chain emissions.
Key Project Members

Megan Lloyd

Stephanie Aretz
