Low-Cost and Scalable Second Use Battery Demonstration in Central California for Equitable United States Based Manufacturing and Job Growth
Second life battery ESS demonstration projects to aid production of Smartville’s Modular Assembly Battery.
Smartville, Inc.
Recipient
Carlsbad, CA
Recipient Location
38th
Senate District
77th
Assembly District
$1,217,174
Amount Spent
Active
Project Status
Project Update
The project team has completed the first phase of this cost-share agreement with the DOE, which included developing a 500kWh battery energy storage system (BESS) system as part of the Smartville 360 product design. Smartville’s product uses eight second-life electric vehicle (EV) battery packs and a newly designed active venting system to mitigate potential thermal runaway events. The team conducted a detailed Failure Mode and Effects Analysis (FMEA), techno-economic analysis (TEA), thermal runaway burn test, and preliminary Hazard Mitigation Analysis (HMA) for the new system. The project was on hold for much of 2025 due to delays related to its federal cost-share agreement but work recently resumed in Q1 2026.
The Issue
California’s goal of 5 million zero-emission vehicles by 2030 will subsequently increase the number of lithium-ion (Li-ion) electric vehicle (EV) batteries that will be retired from vehicle applications. When retired, most of these batteries will not have reached their end of life but are no longer fit for the strenuous application of powering a vehicle. These batteries can be repurposed for stationary energy storage applications. Therefore, this project aims to support a circular economy for Li-ion EV batteries, providing a second life as energy storage to support grid reliability and resilience.
Typical State-of-the-Art (SOA) repurposing solutions implement a used battery ‘binning’ approach wherein batteries must be tested individually to grade available capacity and then stored until end-product integration. This approach, however, fails to effectively guarantee long-term battery performance and thus lacks commercial viability and scalability. The cost-effectiveness of reusing second-life EV batteries is hindered by lengthy and costly logistics and repurposing processes, compromised system performance, and long-term safety and reliability concerns.
Project Innovation
This project will implement two second life BESS demonstrations and accomplish low-rate initial production of Smartville’s proprietary second life energy storage building block Modular-Assembly-Battery (MOAB). The first demonstration will deploy a 3MWh second life battery ESS in California, integrated with distributed power sources and load demand. The second demonstration will deploy a 500KWh second life battery ESS at Smartville's facility in San Diego, CA. Both demonstrations will undergo at least 1 year-long testing and data-backed prognostics study. The project will achieve >30% second life ESS cycle life extension compared to SOA, from a combined benefit of life balancing control, data-backed prognostics, and unique second life battery pack integration hardware design. The productization effort will also achieve $100/kWh integrated ESS cost, and production rate of 1 MOAB per day by the project end, with estimated $2500/MT added value via repurposing. By the end of the project, the Smartville team will achieve key technology and commercialization advancements, specifically: accomplishing low-rate production of one 250 kW rated MOAB unit per day at 30% life extension and 50% battery pack state of health uniformity improvement, compared to current state-of-art, elevating the technology readiness level to 9.
Project Goals
Improve battery uniformity through life balancing controls.
Reduce manufacturing time and costs for second-use EV battery energy storage system (MOAB).
Reduce levelized cost of storage and scale up production.
Increase community engagement with the project.
Analyze community benefits of the second life battery ESS systems.
Project Benefits
The project will develop a low-cost and reliable battery energy storage system that utilizes repurposed EV batteries, which can make the cost of energy storage more affordable. Using repurposed batteries in an energy storage system adds value to retired EV batteries prior to recycling and provides a sustainable energy product that can be implemented at a large scale. The Smartville 360 also provides a modular design that can be integrated with multiple form factors, making it more versatile for different use cases.
Equity
Equity
Smartville is coordinating with local environmental justice advocates and educational groups to address and quantify community benefits based on the demonstration and estimate potential impacts resulting from broader future deployments. In addition, Smartville is implementing two 1.5 MWh second life battery energy system demonstrations in San Diego, CA, located in and supporting a disadvantaged community.
Energy Security
Energy Security
The demonstration systems will operate in support of the city of San Diego's Climate Action Plan in pursuit of net zero greenhouse gas emissions and improved air quality. At scale, Smartville's EV battery repurposing technology will bring lasting contributions to California's energy infrastructure and support the growth of a more sustainable, resilient, and equitable energy sector.
Environmental Sustainability
Environmental Sustainability
During the project period, the demonstration will achieve an estimated 1,500 tons CO2 reduction from reusing EV batteries and the integration with renewable electricity. At scale, the extension of EV battery life in second use applications can result in over 2.6 million tons of annual CO2 reductions by 2030 due to the reduction of battery and supply chain emissions.
Consumer Appeal
Consumer Appeal
Smartville’s 2nd-life BESS solution appeals to consumers by delivering a sustainable and cost-effective energy storage option using repurposed EV batteries. It supports energy independence, backup power reliability, and integration with renewable sources like solar, making it especially attractive for environmentally conscious users and those seeking resilience against outages.
Affordability
Affordability
By utilizing second-life batteries, the Smartville’s solution significantly reduces upfront capital costs compared to new battery systems. Additional savings are achieved through extended asset life, lower material costs, and reduced waste, resulting in a more economical energy storage solution over its lifecycle.
Key Project Members
Megan Lloyd
Senior Program Manager
Smartville, Inc.
Stephanie Aretz
COO
Smartville, Inc.
Antoni Tong
CEO
Smartville, Inc.
