Japanese utility Tokyo Electric Power Co. Holdings (TEPCO) is set to launch a storage business using used electric vehicle batteries from China, just weeks after establishing its wholly owned subsidiary Tepco Ventures to enter new business ventures.
The plan is to assemble up to 30 used EV battery packs into energy storage systems for use at renewable-energy plants, according to reports by news outlet Nikkei Asian review.
TEPCO plans to lower the price of large storage batteries in Japan to around 100,000 yen ($929) per kWh, from the average 150,000 to 200,000 yen ($1,400 to $1,860).
Tepco Power Grid— the transmission and distribution unit of TEPCO — will buy used EV batteries from trading companies in China and elsewhere, which will be sold to renewable-energy plants for 30-50% less than new batteries, reported Nikkei.
TEPCO has teamed up with Tokyo-based battery system developer NExT-e Solutions to develop technology for combining used products.
Trials are due to start in September with plans to deploy the batteries nationwide next year as the Japanese firm looks to turn the venture into a new revenue stream.