Does leasing batteries reduce environmental impacts?

Despite the advantages mentioned in the literature, such as improved lifetime management, the promotion of repurposing and recycling, and centralized maintenance, the results suggest that leasing batteries does not significantly reduce environmental impacts.

How are batteries allocated in a leasing scenario?

In the leasing scenario with a random distribution, the allocation of batteries follows a randomized approach. Initially, in the first year, batteries are assigned based on the distribution of driver profiles, similar to the previous cases.

Are liquid cooled battery energy storage systems better than air cooled?

Liquid-cooled battery energy storage systems provide better protection against thermal runaway than air-cooled systems. “If you have a thermal runaway of a cell, you’ve got this massive heat sink for the energy be sucked away into. The liquid is an extra layer of protection,” Bradshaw says.

Is leasing a battery profitable?

The findings demonstrate that leasing batteries can be equally as profitable as selling them, with a positive NPV of €6.4 million with a confidence interval of ±5.5% at 90% certainty for a fleet of 10,000 BEVs. However, companies that lease batteries may require higher revenues and face increased tax obligations to obtain the same NPV as selling.

What is battery leasing?

Battery leasing is a business model where instead of purchasing batteries outright, customers can lease them for a specific period and pay a fee to use them. This approach helps to reduce the upfront cost of EVs, making them more affordable for customers ( Li and Ouyang, 2011; Huang et al., 2021 ).

How does a battery leasing business model work?

In the case of the battery leasing business model, where batteries are utilized by multiple users over their lifespan, a distinct methodology is adopted to ensure efficient allocation. Specifically, for the leasing scenario employing a smart distribution, the allocation process follows the following guidelines.