Mercedes-Benz Energy signed a contract with battery recycler Lohum Cleantech to supply used batteries. Lohum has agreed to lift a minimum of 50 MegaWatt Hertz (MWh) per year from Mercedes-Benz Energy across multiple second-use modules under the terms of the agreement.

When these used modules reach the end of their useful life, Lohum offers a buy-back guarantee to recycle them through its hydromet plant.

The agreement will allow Lohum to obtain large quantities of second-use battery modules from Mercedes-Benz Energy.

For Mercedes-Benz Energy in Asia, Lohum will be the first partner in repurposing EV batteries. For the time being, Lohum primarily adapts battery applications for the Indian stationary and non-automotive storage markets. Its stationary applications range from small 6-KWh batteries to larger 1-MWh storage systems, and its mobility applications include low-power ones like the electric rickshaw.

The uncertainty of feedstock supply and composition, according to Gordon Gassman, CEO of Mercedes-Benz Energy, who made the announcement about the deal, is the biggest challenge for second-life batteries.

“Lohum is developing expertise and applications across multiple module variants to create a long-term supply funnel,” Gassman said.

On their partnership with Mercedes-Benz Energy, Justin Lemmon, co-founder and head of international operations, Lohum said, “second life remains very nascent and Mercedes-Benz Energy’s creativity, process and commitment to safety has helped us expand our business significantly.”

See also:
New safety norms for EV batteries to take effect on 1 Oct
Global demand for EV batteries to rise over 10 times by 2030