The largest vehicle salvage company in the UK, Synetiq, has teamed up with Allye Energy to supply the startup with salvaged electric vehicle battery packs for energy storage systems, the two companies announced on Monday.
To employ its 300 kWh battery storage system, Allye will test and purchase electric vehicle (EV) packs from Synetiq, an IAA subsidiary and a division of Canada's RB Global Group. Each kWh battery pack is made up of four recovered EV battery packs, which is sufficient to power 50 households or a factory for a day. Customers will rent those packets from Allye.
Insurance companies have been forced to write off low-mileage electric cars because they lack the data necessary to evaluate EV battery pack damage following accidents.
A growing amount of salvaged EV battery packs have to be housed in containers by salvage businesses like Synetiq because the EV battery recycling market is still in its infancy outside of China. An estimated 40,000 virtually new battery packs from reclaimed electric vehicles were in use in 2022. As EV sales increase, that figure will rise.
Reusing complete electric vehicle battery packs, according to Synetiq CEO Tom Rumboll, would solve a significant issue facing the sector. According to Allye's Carrier, using old battery packs reduces CO2 emissions for storage systems by 60% when compared to new ones. It can also reduce customers' energy bills by 50% when energy is taken from the grid during off-peak hours and used during peak demand.
Allye intends to use 5,000 packets annually in the UK as it ramps up and to extend into other regions, he continued. Allye has raised just under a million pounds ($1.3 million) so far and is looking for further money.
