Nissan plans "second life" for Leaf Lithium-ion batteries

Japan's Nissan Motor has announced plans to resell used Lithium-ion batteries from its forthcoming all-electric Leaf car in a scheme designed to bring down ownership costs for green motorists.

The automaker said yesterday it will form a joint venture with Tokyo-based conglomerate Sumitomo Corp that would sell or lease second-hand Leaf batteries in Japan and the US for domestic or commercial use as energy storage devices. The company is expected to be operational by late 2010.

Nissan said it would team up with Renault, its French sister firm, to establish a similar joint venture that would serve the European market.

The scheme builds on Nissan's plan to have purchasers of the Leaf pay for the car minus the battery – the most expensive component at $10,000 (£6,000) – and lease the battery.

The battery would be paid for in monthly installments which, when added to the costs of recharging it, would be comparable to the petrol expenses for a conventional car, according to Nissan.

The Leaf's high-performance, 24kW/h batteries will retain 70 to 80 per cent of residual capacity after the end of the vehicle's normal 10-year lifespan, Nissan said. This makes it useful for alternative energy applications, such as providing backup power supply for buildings, energy storage for solar panels, and load levelling for power grids, solar and wind projects.

The automaker predicts that demand for so-called "second-life" batteries will reach 50,000 units a year in Japan alone. Nissan, which did not have estimates for the US and European markets, plans to build 200,000 Leafs annually for the global market starting in 2012.

"Consumers are excited by the promise of all-electric, zero-emission cars, but they also want assurances that Lithium-ion batteries can be reused and recycled," said Toshiyuki Shiga, Nissan chief operating officer. "Our batteries are not only reusable, they also contribute as a solution to energy storage."

The scheme mirrors a similar initiative announced last month by India-based electric car giant Reva. The firm signed a partnership with battery servicing firm Zem Energy that will see it identify " second-life" applications for old batteries.