LG Energy Solution teams with B2U to repurpose used EV packs for US grid

LG Energy Solution finalized a strategic alliance with B2U Storage Solutions on Sept. 28, 2026, granting the developer priority access to retired electric vehicle batteries for American stationary grid projects.

The agreement allows B2U to repurpose automotive battery packs for commercial storage before recycling them. B2U operates over 100 megawatt-hours of storage projects and holds a pipeline exceeding four gigawatt-hours across the United States.

The partners aim to deploy gigawatt-hours of repurposed storage capacity to American power buyers. The program targets electric utilities, independent storage developers and large commercial electricity consumers seeking lower equipment expenses.

Rapid load growth from artificial intelligence data centers has tightened regional transmission networks. Repurposed vehicle batteries offer those server facilities dedicated backup electricity while avoiding long procurement backlogs for newly manufactured utility cells.

B2U deploys its patented EV Pack Storage technology to connect battery packs directly into stationary enclosures. The platform operates without dismantling packs into individual cells, avoiding labor-intensive disassembly costs and preserving factory safety casings.

Automotive battery packs typically retire from passenger vehicles once usable energy storage capacity declines below 80%. Those retired units retain ample cycling capability to shift solar power and shave evening consumption peaks on electric grids.

For LG Energy Solution, the partnership defers end-of-life handling and capital-intensive hydrometallurgical recycling. The secondary off-take channel generates revenue from vehicle batteries that have reached the end of their automotive warranty periods.

Repurposing batteries for grid storage lengthens their useful lifespan and creates growth opportunities that deliver long-term economic returns, Seung Tak Joo said. Joo leads the Energy as a Service business department at LG Energy Solution.

The alliance unites proven repurposing technology with a reliable battery supply, Freeman Hall said. Hall, the founder and chief executive officer of B2U Storage Solutions, added that access to secondary packs makes storage projects more bankable.

B2U built its commercial footprint around a 28-megawatt-hour operating facility in Lancaster, California. The developer expanded its operating capacity this month by deploying 500 retired vehicle batteries in Bexar County near San Antonio, Texas.

Stationary storage assets in Texas supply flexible reserve electricity to the Electric Reliability Council of Texas. The Texas grid operator faces sharp electricity demand spikes during extreme weather and heavy industrial load growth.

Deploying second-life storage systems within the United States helps project sponsors meet federal energy guidelines. B2U designs its stationary enclosures to qualify for domestic content tax bonus provisions under clean energy manufacturing statutes.

The partnership deepens LG Energy Solution's operational ties to the American utility sector. The South Korean manufacturer also supplies grid-scale system enclosures and software through its integration subsidiary, LG Energy Solution Vertech.

Cell manufacturers face mounting pressure to establish comprehensive battery lifecycle management networks in North America. Extending battery service life by six to eight years delays the volume of spent cells heading into shredding facilities.

Direct reuse lowers the immediate demand for primary critical minerals including lithium, nickel and cobalt. Postponing hydrometallurgical processing allows regional recycling facilities more time to expand commercial refining capacity.

The arrangement also shields battery manufacturers from immediate environmental compliance liabilities tied to industrial battery waste. Retaining packs in operating grid assets allows companies to book recurring service revenue through Energy as a Service contracts.

Neither company submitted regulatory disclosure filings to the Korea Exchange or South Korea's Financial Supervisory Service. The supply alliance did not cross mandatory disclosure thresholds for material capital investment or binding financial liabilities.

The companies have not published the dollar value of the contract, per-kilowatt-hour pricing terms, delivery schedules or the exact capacity volume committed under the priority access agreement.

The released documents also do not specify which vehicle manufacturers originally installed the repurposed packs, or how warranty liabilities are shared between the cell producer and the system integrator.

Rival battery producers in China and Japan are testing similar secondary deployment models across domestic markets. However, high labor costs for pack testing and certification have slowed large-scale second-life commercialization in Western markets.

B2U circumvents manual testing bottlenecks by using proprietary algorithms that continuously balance charging speeds across disparate battery packs. Software controls isolate degraded battery strings automatically without taking the entire storage enclosure offline.

B2U plans to integrate the newly secured battery supply into utility interconnection queues and private data center microgrid projects through the first quarter of 2027.