
Final Up to date on: thirtieth Might 2025, 12:29 am
“Saying that EV batteries will find yourself in landfill is a lie. Even when somebody took an electrical automobile battery to the tip, another person would seize it and promote it. They’re too precious and helpful to enter landfill.” So says engineer Francisco Shi. You would possibly bear in mind him from this article. Or this one. “Simply through the use of batteries for vitality storage you’ll be able to flip each grid connection into passive revenue.”

So, when he contacted me about his newest mission, I popped out to his workshop to test it out. Francisco has constructed a mini energy plant utilizing batteries from wrecked Teslas and BYDs. He says he prefers the BYD batteries as a result of they’re simply stackable. BYD batteries are simpler to make use of. For the Tesla batteries, he has to construct a body as a result of the sting is thinner and so they have a hump. In addition to proving that the batteries-to-landfill FUD is a lie, Francisco is demonstrating that they’re protected in a crash and have a sensible second life use. He’s being profitable, supporting the grid.
It began when the federal government contacted a waste administration firm, and so they in flip subcontracted to Francisco. He was tasked with growing a system that may allow the batteries to be totally discharged so that they may very well be shredded safely. The mission developed when all involved realised that the batteries have been much more precious left entire.

Francisco’s manufacturing unit is in a post-industrialised space with plenty of empty rooftop house and underutilised transformers. “One good thing about doing that is there is no such thing as a want for infrastructure spending. Simply set up the batteries in industrial buildings with huge grid connections. Simply in our avenue there are 3 transformers which might be underutilised. The factories are closed. If on high of that we coated all of the roofs with photo voltaic panels, we in all probability gained’t want too many photo voltaic farms or grid upgrades. The one disadvantage is energy firms don’t become profitable,” he tells me. How will they get on when this turns into an Aussie yard pattern? “My finest to this point is AU$1400 in a single evening. My month-to-month common is round $1000.”
I requested about return on funding. “Relies on how a lot you pay for the battery. In case you purchase a wrecked automobile and promote all of the helpful components, the battery is near free. In the mean time I’m doing arbitrage on the manufacturing unit. Our photo voltaic doesn’t make sufficient to cowl the consumption, so I would like to purchase through the day, however then I get excess of what I pay once I promote it again throughout peak demand.” Francisco began with 20 kW of photo voltaic on the roof. So, he was initially shopping for energy in the course of the day when costs went detrimental.

Francisco now has 60 kW on the roof, with plans to double it. He needs to exhibit the potential of batteries from wrecked EVs as a cash maker. We talked amongst pallets of EV components and automobiles in numerous levels of deconstruction. He identified a pallet of BYD drivetrains. “These are nice for conversions and can promote on.” There’s an rising and rising marketplace for EV components.
Francisco is utilizing a hybrid inverter to get the batteries to speak to the grid. He’s utilizing an off-the-shelf inverter which has been authorized for connection to the grid. Any inverter that you simply purchase “off the shelf” has been authorized — it doesn’t matter what batteries you utilize. The battery system has been boxed up.
He’s now engaged on certification. His vitality retailer was involved in regards to the exercise in his workshop — not utilizing any energy through the day and but exporting giant quantities throughout peak hour. They ship technicians round to examine the meters — certainly there was a glitch. The technicians inspected the premises and declared that every one was okay. AGL could also be in bother.
The battery expenses through the day from his rooftop photo voltaic, then discharges at peak within the night. “Costs at peak might begin at 22 cents however can get as excessive as $7 a kWh.” He says he’s making a killing. My ideas: as extra folks do that, there gained’t be a peak hour anymore and the enterprise case will decline. Nevertheless, this seems to be a few years off. If sufficient photo voltaic is soaked up through the day signifies that the costs gained’t go detrimental, then promote into the height when one of the best value is accessible.
Australia has just lately had an election and voted in a authorities that has promised to subsidise residence batteries. If as many individuals set up a house battery as have photo voltaic on their roofs, it is going to make a major distinction to grid utilization. Francisco feedback: “In the mean time, battery ROI signifies that they solely break even over the lifetime of the battery. Ten years. This can rely upon battery value reductions — possible over the following 5 years. The one purpose to be on the grid will likely be to become profitable by promoting your photo voltaic.”
Getting again to the batteries, I used to be shocked at how simple it was for Francisco to acquire them and requested what number of wrecks have been occurring. He informed me 4 or 5 every week all through Australia. I used to be shocked. I couldn’t discover any stats from Google, however here’s a view from The Guardian: “Electrical automobiles are routinely being written off after minor accidents, as a scarcity of expert mechanics and components, in addition to outdated legal guidelines, leads Australian insurers to scrap EVs prematurely as an alternative of repairing them.” Some can nonetheless drive, as Francisco demonstrates right here. And it isn’t simply EVs — many petrol automobiles are written off as a result of it was the cheaper possibility. Francisco identified that if an insurance coverage firm has to offer a rental automobile for a size of time, it’s cheaper to put in writing off the broken automobile and transfer on.

Of the 15–20 automobiles Francisco has bought, solely two had broken batteries. The accidents had not precipitated any fires. One had been pushed over a visitors island and cracked the coolant manifold when it hit backside. The coolant leaked out; the automobile received written off. Francisco pulled the battery pack aside and cleaned it up. When reassembled, the battery nonetheless works.
Francisco provides: “If something goes incorrect along with your EV battery, you should buy a battery from a wrecker and swap it over — faster than doing a clutch. And costs are nonetheless coming down.” I might warning that you actually need to know what you’re doing. Ignorance is a killer.
Francisco tells me: “Some automobiles are written off as a result of assessors don’t know they’re repairable. The blue BYD may have been repaired for AU$2000–3,000 however it’s a statutory write-off.” Ignorance can be costly. Francisco is seeing extra statutory write-offs of all sorts of automobiles. “Some are even being despatched abroad.”
The waste administration firm referred to above began with Li-ion batteries from cell phones, laptops, backyard tools, and many others. However they discovered these have been loss making. As they moved to electrical automobile batteries, they anticipated to make a revenue. With an EV battery, the labour price is much less per kilogram, plus the case can be recyclable, in contrast to plastic-encased smaller equipment batteries. EV batteries are roughly 400 kg.
The EV batteries wanted to be totally discharged earlier than they may very well be recycled. Franciso was contracted to provide you with a system to discharge them. Through the testing course of, they found that they may make more cash by retaining the battery entire. There’s nonetheless a scarcity of EV batteries, with small numbers of EVs on the highway. Francisco postulates that the “batteries might outlast the automobile (say ten years) after which perform successfully in second use functions for one more ten years. Not a lot level constructing a manufacturing unit to recycle batteries that gained’t get a lot use for 20 years. Even batteries presupposed to be shredded can get reused.”
Francisco is okay tuning his arbitrage exercise. There are a number of components to think about. Even when costs go detrimental through the noon photo voltaic duck, he has to pay community expenses. Therefore the purpose to double his photo voltaic. When importing energy, even when the value is detrimental, for instance minus 2c a kWh, he nonetheless has to pay an 8 cents community cost, so the facility prices 6 cents a kWh. The community cost is what pays for the poles and wires.
He tells me that yesterday he offered an excessive amount of energy from his battery setup and right this moment being very cloudy, with a contact of rain, he has to import energy from the grid. I observed that he now has two extra EV batteries so as to add to his mini energy station, one Tesla and one BYD. He believes that the system utilized by Amber would be the future. However that is perhaps one other article.
As I used to be leaving his workshop, Francisco factors out a wrecked gray BYD. It had been concerned in a head on collision however you’ll be able to nonetheless drive it. The automobile was labelled a statutory write off – even when repaired, it can’t be registered. “In case you had this accident in a petroleum automobile you’ll be strolling residence. EVs are extra dependable,” he tells me.

And, sure, Francisco continues to be eager on changing EVs to one-pedal driving. His newest mission is retrofitting a BYD Shark — keep tuned. EV batteries are making their method into second-life use and dispelling myths about battery longevity and hearth security. For these with the imaginative and prescient and expertise, the longer term is vibrant, electrical, and worthwhile.
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