An increasing number of major car manufacturers are developing solutions in a space that at first glance may seem like a strange choice: energy storage.
BMW recently signed a contract that adds 500 of its i3 battery packs to the UK national energy grid. Audi is running a pilot project. Renault is turning some of its Zoe batteries into a home energy storage solution, and in Japan, both Toyota and Nissan have announced that they will offer battery energy storage.
A closer look reveals many good reasons for car companies to pursue energy storage. Here are five of the biggest.
Electric Is the Future
The strangeness of adding energy storage to the mix fades a bit when considering how much money car companies are investing in batteries. Volkswagen recently announced it plans to spend a whopping $48 billion on batteries in the coming years.
The future of transportation is a subject dear to the hearts of car companies. Their view seems to increasingly be that transportation is going to be a) self-driving and b) electric.
The question for companies becomes: why stop at cars? If you are going to be making batteries anyway, why not explore other markets that need batteries?
Tesla
Tesla has been doing exactly that, with big success in both large-scale projects in Latin America and Australia and in general with its Powerpack and Powerwall systems for homes and companies. Last year, it sent heads spinning in top offices of major car manufacturers by briefly overtaking them to become the most valuable American car company.
Tesla’s goal is to be much more than a car company, though. As Elon Musk explained to Fast Company, “This is the integrated future. You’ve got an electric car, a Powerwall, and a Solar Roof. It’s pretty straightforward, really.”
Other car companies seem to be thinking along the lines of “well, if Tesla can do it, so can we—and we better get going before they corner the market.”
The Future Is Smart (and Bundled)
Another important point from the Musk quote is that we are heading towards an integrated future. One of a smart grid consisting of not just stand-alone energy storage units, but also things we attach and detach from the grid. Like electric cars, for example. Our four-wheeled friends can be of use for much more than the short periods of time they ferry us around. Using them as energy storage during stand-still hours makes excellent sense.
Finding ways to link cars and energy storage will be increasingly valuable, as will the ability to offer complete packages. The logic goes that if you have a Tesla or a Powerwall, you are much more likely to buy a product from the same manufacturer than from a competitor.
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