Volvo Energy invests £4m in Newcastle based battery energy storage specialist

Volvo Energy has announced its investment in Newcastle based, second-life battery energy storage specialist Connected Energy in order to further accelerate Volvo Group’s battery business and sustainability opportunities.

In its mission to support and secure an “attractive and sustainable” circular business model for batteries, Volvo Energy is investing approximately SEK 50m (£4m) for 10 percent in the second-life battery energy storage specialist Connected Energy.

Joachim Rosenberg, President Volvo Energy, commented: “There is a great deal of untapped potential in the second-life use of batteries.

“This forward-leaning investment aims to facilitate the scaling-up of second-life battery energy storage systems and further secure circular business opportunities for the forthcoming ramp-up in Volvo Group’s second-life battery returns.

“Together with Connected Energy, we will minimise the environmental impact of the batteries that have powered Volvo Group vehicles. By repurposing the batteries, we obtain the full value from them, from a climate, environment and business perspective.”

Matthew Lumsden, CEO Connected Energy, added: “We couldn’t be more pleased to welcome our new investor Volvo Energy on board and look forward to forging a path to increasing the sustainability of both electric vehicles and grid connected energy storage.

“Our collaboration will enable us to optimise the potential for battery reuse and ensure that the resources in the batteries are used effectively.”

Volvo Energy is one of five new investors including Caterpillar Venture Capital Inc., the Hinduja Group, Mercuria, OurCrowd to join existing investors of Connected Energy; Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund.