Lucid Motors' Dual-Life Battery Strategy

Lucid Motors is engineering its battery packs for longevity, anticipating a minimum of two operational lifespans. Beyond its focus on luxury electric vehicles, the company is actively exploring energy storage solutions for both commercial and residential applications.

Planning for Battery Repurposing

Although large-scale battery reclamation is still some years away – with the Lucid Air sedan’s market arrival slated for the latter half of 2021 – Lucid is proactively developing strategies for a second-life application of its EV batteries.

The modular design of Lucid’s battery cells, identical for both vehicle power and energy storage, makes them ideally suited for repurposing. A 300-kilowatt hour stationary storage prototype has already been constructed at Lucid’s engineering facility, as confirmed by Eric Bach, Chief Engineer and Senior VP of Product, to TechCrunch.

Second-Life Potential and Industry Trends

Used EV batteries typically retain approximately 70% of their original charging capacity, representing a substantial reserve of usable energy. Several automakers, including General Motors, Ford Motor, and Audi AG, have already initiated pilot programs to capitalize on this remaining value.

Lucid anticipates recovering used battery packs from its EVs through its service centers and customer trade-ins. Upon return, the packs will undergo module harvesting and rigorous quality assessments. The vehicles’ integrated sensors will provide detailed data on battery health, facilitating accurate module evaluation.

Energy Storage System Components

While the core battery modules will remain consistent across Lucid’s products, complete storage systems will incorporate additional components. These may include DC-to-AC inverters, cooling mechanisms, and essential safety features.

The allocation of second-life batteries between residential and industrial uses remains to be determined. Bach suggests industrial applications may be prioritized due to a focus on cost-effectiveness, measured in dollars per kilowatt hour.

Leveraging Dismantlers and Future Recycling

Lucid is considering incentivizing automotive dismantlers to return battery packs to the company. Even without such incentives, the increasing value of EV battery raw materials is expected to drive dismantler-led battery pack sales to recyclers or other companies.

Currently, Lucid is not directly involved in material recycling, relying instead on its battery cell suppliers, such as LG Chem. However, Bach envisions a future expansion into cell manufacturing and a comprehensive value chain encompassing raw material recovery.

Bidirectional Charging and Near-Term Solutions

While a dedicated Lucid home battery system is still several years away, the Lucid Air will feature bidirectional charging capabilities. This will allow customers to utilize their vehicle’s battery to power their homes, effectively serving as an initial home energy storage solution.

Investment and Expansion Plans

Details regarding resource allocation for the energy storage business remain limited, pending the completion of Lucid’s transition to a publicly traded company. In March, Lucid Motors announced a merger agreement with Churchill Capital IV Corp., valued at $11.75 billion in transaction equity.

The resulting company, with Saudi Arabia’s sovereign fund as the largest shareholder, boasts a pro-forma equity value of $24 billion. These funds will support the launch of the Lucid Air and an upcoming SUV, as well as the expansion of Lucid’s manufacturing facility in Arizona.

The Arizona factory is planned for three additional phases, ultimately achieving a production capacity of 365,000 units annually. The initial phase, completed late last year, can produce 30,000 vehicles per year.