Allye and Synetiq to repurpose electric vehicle batteries, creating a sustainable future for UK’s economy

Synetiq, the UK’s largest vehicle salvage company, collaborates with Allye Energy to repurpose salvaged electric vehicle battery packs for a 300 kWh battery storage system. Allye aims to lease these packs, cutting CO2 emissions by 60% and reducing energy bills by 50%. The initiative addresses the challenge of recycling EV battery packs and promotes sustainability in the industry.

Allye and Synetiq to repurpose electric vehicle batteries, creating a sustainable future for UK's economy

Repurposing used EV Battery Packs for Energy Storage: Synetiq and Allye Energy Join Forces

London, January 8 – In a groundbreaking move, Synetiq, the United Kingdom’s premier vehicle salvage company, has forged a strategic partnership with Allye Energy, aiming to repurpose salvaged electric vehicle (EV) battery packs for innovative energy storage systems. This collaboration between Synetiq, a unit of IAA and part of Canada’s RB Global group, and Allye Energy is set to reshape the landscape of energy storage, offering an eco-friendly and cost-effective solution.

Synetiq and Allye Energy jointly announced their collaboration on Monday, showcasing a forward-thinking approach to address the growing concern of salvaged EV battery packs going to waste. Allye Energy, led by CEO Jonathan Carrier, plans to acquire and test EV packs from Synetiq, repurposing them for their 300-kilowatt hour (kWh) battery storage systems. Each system, ingeniously designed to utilize four salvaged EV battery packs, has the capacity to power a factory or 50 homes for an entire day. The unique twist lies in Allye’s intention to lease these salvaged packs to customers, creating a win-win situation for both the salvaging and energy storage sectors.

Tom Rumboll, UK Managing Director for IAA and Chief Executive Officer of SYNETIQ said: “We’re excited to work with Allye to repurpose entire EV battery packs and address a key challenge in our industry. Having a safe, climate-conscious, and affordable solution for EV batteries is crucial to maximising their environmental and economic benefits, in total alignment with SYNETIQ’s core principles. Working together to promote reuse will build strong and sustainable markets, benefiting consumers, the automotive sector, and the planet.”

The Salvaged EV Battery Dilemma

Jonathan Carrier, in a statement to Reuters, shed light on the current predicament of salvaged EV battery packs. He expressed the urgency to transform these neglected assets, stating, “At the moment, these battery packs are sat around in containers, unloved and unwanted. We’re trying to change that.” This partnership with Synetiq aims to breathe new life into these overlooked components, offering a sustainable solution that benefits both the environment and the economy.

One of the challenges in the EV salvage industry has been the lack of access to data for assessing EV battery pack damage post-accidents. This has led insurers to write off low-mileage electric cars, contributing to a significant loss. Synetiq and Allye Energy’s collaboration tackles this challenge head-on, introducing a model that reuses entire EV battery packs, potentially revolutionizing the industry.

Quantifying the Impact

In 2022, an estimated 40,000 nearly new battery packs from salvaged EVs were recorded, and this number is anticipated to surge as EV sales continue to rise. Synetiq’s CEO, Tom Rumboll, emphasized the significance of reusing entire EV battery packs, noting that it “will address a key challenge in our industry.” The impact is not only environmental but extends to cost savings and efficiency improvements.

Eco-Friendly and Cost-Effective Storage Solutions

Allye Energy’s approach to energy storage using salvaged EV battery packs boasts environmental and economic benefits. Reusing existing battery packs results in a 60% reduction in CO2 emissions compared to manufacturing new ones. Additionally, customers stand to benefit from a 50% reduction in energy bills, achieved by drawing energy from the grid during off-peak hours for use during peak demand. Jonathan Carrier highlighted the dual advantage, stating, “Using existing battery packs cuts CO2 emissions for the storage systems by 60% versus new ones and can cut customers’ energy bills 50%.”

As Allye Energy gears up for expansion, the company envisions using 5,000 packs annually in the UK and has aspirations to venture into other markets. The potential for widespread adoption of this innovative approach is considerable, promising a significant contribution to sustainability and energy efficiency.

Financial Backing for the Future

Despite the promising prospects, Allye Energy has thus far raised just under a million pounds ($1.3 million) and is actively seeking additional funds to fuel its ambitious vision. The call for investment underscores the belief in the viability and potential impact of their pioneering approach to salvaging and repurposing EV battery packs.

The collaboration between Synetiq and Allye Energy marks a crucial step towards transforming salvaged EV battery packs from dormant liabilities into valuable assets. The implications are far-reaching, addressing environmental concerns, tackling industry challenges, and offering a cost-effective solution for both businesses and consumers. As the partnership navigates financial backing and looks towards expansion, the future of energy storage appears poised for a greener and more sustainable trajectory.

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Source(s): Reuters

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