The Volvo Group, through Volvo Energy, is investing in Connected Energy in the UK, which specializes in the second-life battery business. With this, the Swedish commercial vehicle manufacturer wants to boost and sustain its battery business.
Volvo Energy buys 10 percent of Connected Energy
Volvo Energy is a newly formed division of the Volvo Group to drive electricity and sustainability. According to a statement, Volvo Energy is investing around £4 million in Connected Energy for a 10% stake in the company.
Circular economy of batteries
Together, the Volvo Group wants to secure an attractive and sustainable battery economy model. It relates to the expected increase in the return of old batteries from Volvo commercial vehicles. The company said there is significant untapped potential in the secondary use of batteries. The goal of the investment is to facilitate the deployment of second life energy storage systems and thus secure circular business opportunities.
“Together with Connected Energy, we will reduce the environmental impact of the batteries that power Volvo Group cars. By reusing batteries we are getting the full benefit of them – from a climate, environmental and business perspective,” said Joachim Rosenberg, President of Volvo Energy.
Connected power already powers 16 battery systems with a lifespan of up to 16 seconds
Connected Energy is headquartered in Newcastle upon Tyne in Norfolk County. It is one of the few companies in the world that actually uses second life vehicle batteries in commercial battery storage systems. Sixteen systems across Europe are currently in operation. Located in Belgium, Germany, the Netherlands and the United Kingdom, it is the largest at Cranfield University in Bedfordshire.
The company received a total of £15 million in the latest investment round. In addition to the Volvo Group, Caterpillar Venture Capital Inc, Hinduja Group, Mercuria and OurCrowd also participated in the financing round.
“We are very excited to welcome our new investor, Volvo Energy, on board,” said Connected Energy CEO Matthew Lumsden. “We look forward to embarking on a journey to make both electric vehicles and grid-connected energy storage more sustainable. Working together will allow us to improve the reusability of batteries and ensure that the resources in the batteries are used efficiently.”
The Volvo Group manufactures trucks, buses and construction machinery, and provides marine and industrial energy, finance and services solutions.
Sources / Read more
Volvo Energy invests in connected energy for second life battery business | Volvo
Volvo Group invests in connected energy | elective.net
Image source: © Volvo
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