BatteryLoop in Sweden is to use new and second life batteries from Mercedes-Benz Energy for large scale energy storage systems (ESS).

The deal also includes DC systems and engineering for the BLESS range, which is housed in shipping containers for easy installation.

Using second life batteries that have already been used in electric vehicles provides lower cost energy storage to even out the supply of electricity for renewable sources. The vehicle battery packs are replaced when they fall to 80% capacity, leaving plenty of capacity for stationary storage applications. This also significantly extends the use of the batteries before they need to be recycled. 

The first delivery will be during 2022 of a 2 MWh system with the power of 3-megawatt installed in Sweden by Gothenberg-based BatteryLoop to support the electricity grid.

“We are very happy and proud to have signed this agreement. This means that we can offer our state-of-the-art energy storage solutions BLESS built on Mercedes-Benz Energy’s high-quality products. The market for large energy storage systems is increasing with the change to renewable energy production. Meeting this business opportunity, together with Mercedes-Benz Energy, is very encouraging,” said Rasmus Bergström, CEO of BatteryLoop, which is part of the Stena Meals group.

The contract will secure high volumes of new and second use battery modules from Mercedes-Benz Energy to BatteryLoop. This could enable BatteryLoop to roll out 40 MWh within the next 18 months using Mercedes-Benz Energy’s modules.

“With second-use batteries and a power-optimizing system we can also, based on the Swedish environmental research institute lifecycle analysis, save 1 000-ton CO2 emissions per 3-megawatt energy storage system from the production and at the same time generate the same benefits for the grid. Additionally, we see that these systems can generate a 7-10 million SEK net income per year for the customer,” said Rasmus. 

“With BatteryLoop we have a partner that has showed deep knowledge in the ESS market, and we are convinced that our products will be an important role for the markets BatteryLoop have. The long-term engagement we see in BatteryLoop and its owner is a key for our decision to have a partner with the long-term engagement in the field of ESS,” said Gordon Gassmann, CEO of Mercedes-Benz Energy.