Voltfang’s repurposed EV batteries to back German grid via $295m partnership

German battery developer Voltfang has entered a €250 million ($295 million) deal with compatriot infrastructure investor Palladio Partners that will run through 2029.

The first of several-hundred megawatt-hours of energy storage capacity could be strengthening the German grid “early next year” thanks to the deal, in an announcement made by Voltfang and Palladio Partners.

The deal, announced on Monday, will see Frankfurt-based Palladio finance and commercialize utility scale batteries developed and operated by Voltfang.

A spokesperson for the latter told ESS News about the hoped-for scale of the partnership which will run through 2029. A spokesperson said “we cannot provide an exact figure at this stage,” but that the company expects the total capacity to “reach several hundred megawatt-hours.” When asked about the application, the company said the systems are “designed specifically for grid services.”

A press release issued by Aachen-based Voltfang to announce the partnership stated the projects commissioned would “include” battery modules originally intended for electric vehicle (EV) deployment but which have never been used.

The Palladio fund which will finance the partnership is aimed at institutional investors such as pension funds.

Palladio Partner Oliver Sauer, quoted in the press release, said, “With the growing demand for electricity storage and the continued decline in technology costs, this is a particularly attractive time to be investing in the expansion of battery storage. Voltfang offers a sustainable range of solutions that align very well with our transformation fund and therefore with what our investors are seeking.”

Voltfang cited predictions made by German research body the Fraunhofer Institute for Solar Energy Systems that the country will need 100 GWh of electrical energy storage capacity by 2030, and 180 GWh by 2045. Germany currently has just 3 GWh of battery energy storage capacity, according to Voltfang.