Allye Energy, a clean-tech startup known for its smart battery technology platform, has signed a strategic supply agreement with SYNETIQ, an integrated salvage, dismantling, and recycling company in the UK, for repurposed electric vehicle (EV) battery packs.
Under this agreement, Allye will purchase a range of healthy EV batteries from a variety of different plug-in vehicle car brands and models from SYNETIQ and install them in the company’s MAX Battery Energy Storage System (BESS).
The Allye MAX is a 300 kWh intelligent energy-storage-as-a-service device for commercial and industrial customers to help reduce energy bills by up to 50% and provide flexible services to the grid to accelerate the decarbonization of the electricity network.
“Our unique approach to repurposing the whole EV battery pack is the most sustainable way to deliver energy storage at scale, making the best use of the finite resources available and helping ensure every EV battery has another chance to deliver what it was designed to do,” said Jack Levy, COO and Co-Founder of Allye.
Through this partnership, the companies will significantly reduce waste and CO2 impact by repurposing usable EV battery packs to store and discharge energy. Every repurposed pack directly reduces overall CO2 emissions by eliminating the production of a new battery pack – more than 7 tons of CO2 for each standard 75 kWh pack, according to McKinsey & Company.
The batteries supplied by SYNETIQ will come from vehicles, typically under five years old, that have been prematurely written off for being beyond economical repair. Together, the companies expect to repurpose over 4,000 EV battery packs over the next five years and experience a net savings of 28,000 tons of CO2.
In the future, Allye will also work with SYNETIQ to gain access to EV batteries with different chemistries, including solid-state and lithium-free batteries, as they enter the automotive supply chain in the UK.
“Having a safe, climate-conscious, and affordable solution for EV batteries is crucial to maximizing their environmental and economic benefits, in total alignment with SYNETIQ’s core principles,” said Tom Rumboll, Chief Executive Officer of SYNETIQ. “Working together to promote reuse will build strong and sustainable markets, benefitting consumers, the automotive sector, and the planet.”