Hyundai Motor Group and Hanwha Q Cells are going to jointly develop an ESS (Energy Storage System) that is linked to solar energy. It is a method of reusing electric vehicle batteries that have reached their end of life.
ESS refers to a device that stores electricity produced through solar and wind power plants or cheap late-night electricity in batteries for use when needed.
Hyundai Motor Group and Hanwha Q Cells announced on May 31 that they signed a memorandum of understanding (MOU) at Hanwha Group's headquarters in Janggyo-dong, Seoul on May 29 for joint development and business cooperation of ESS linked to solar energy. Hyundai Motor Group CEO Ji Young-jo and Hanwha Q Cells CEO Kim Hee-chul attended the signing ceremony.
The agreement calls for cooperation in new businesses linking batteries recovered from electric vehicles with solar energy systems.
Major contents include joint development of ESS products for home and power based on electric vehicle reusable batteries, demonstration by using solar power plant in Hanwha Q Cells' German research institute, pilot sales using customers and infrastructure owned by both companies, and joint discovery and implementation of large-scale ESS projects linked to solar energy.
As the share of renewable energy such as solar energy increases worldwide, demand for ESS to help efficient use of renewable energy is also increasing.
Bloomberg New Energy Finance (BNEF) predicted that the global ESS market, which was 3 gigawatt hour (GWh) in 2017 will also grow 128 times to 379 gigawatt hour in 2040, as the share of renewable energy generation will expand to 40% in 2040.
ESS, jointly developed by the two companies, is a solution that can supply ESS on a large scale by significantly lowering the cost of building systems by reusing electric vehicle batteries. It is expected that this cooperation will contribute to the supply of renewable energy in the future by launching systems with price competitiveness in the market.
Hyundai Motor Group has secured a stable market for solar energy-linked ESS through cooperation with Hanwha Q Cells, a leading global solar energy company, and Hanwha Q Cells expects to leap forward as a total energy solution company covering the entire renewable energy industry by supplying solar power facilities and price-competitive ESS package products.
"Through this cooperation, we will effectively minimize the volatility of the supply of renewable energy and complete the eco-friendly value chain of electric vehicles by maximizing the reuse of electric vehicle batteries," said Ji, head of Hyundai Motor Group's strategic technology division.
Meanwhile, Hanwha Q Cells CEO Kim said, “This cooperation will strengthen our position in the global energy market as a total energy solution company that provides solar modules and ESS through the development of competitive products."
