Nissan Motor Co. has begun powering portions of its Melbourne casting and assembly plant with a stationary energy storage system built from second-life EV batteries, marking what the company says is the first commercial-scale deployment of repurposed Nissan Leaf batteries in the Asia-Pacific region. The system, installed in partnership with Australian energy storage firm Relectrify, uses 148 retired Leaf battery modules to provide peak-shaving, load management, and backup power for the facility’s paint shop and component testing operations.
The installation, which became operational in November 2025, has a total energy capacity of 3 megawatt-hours (MWh) and a peak output of 1.5 megawatts (MW). Nissan estimates the system will reduce the plant’s grid electricity costs by 15–18% during peak demand periods, while also serving as emergency backup during grid outages—a growing concern in Victoria’s summer months when extreme heat events strain transmission infrastructure.
From Road to Factory Floor
The batteries powering the Melbourne system were sourced from first-generation Nissan Leaf vehicles retired from fleet operations across Australia, New Zealand, and Japan. These 24-kWh and 30-kWh packs, originally manufactured between 2013 and 2017, retain between 65% and 78% of their original capacity—below the threshold for reliable automotive use but well within the performance range needed for stationary storage applications where weight and space constraints are less demanding.
Relectrify’s technology plays a critical role in the deployment. The Melbourne-based company has developed battery management and inverter systems specifically designed for second-life battery applications. Its BMS technology can manage modules with varying states of health within a single system, addressing one of the persistent technical challenges of repurposing batteries that have degraded unevenly during their automotive service life.
“A battery that is no longer optimal for driving still has enormous utility in stationary applications. The energy stored in these retired Leaf batteries will power our manufacturing operations for another 8–10 years before they need to be recycled. That is a significant extension of the value chain.” — Stephen Lester, Managing Director, Nissan Australia
Economics of Second-Life Deployment
Nissan has not disclosed the total project cost, but industry benchmarks confirm that second-life battery storage systems can be deployed at 40–60% of the cost of equivalent new lithium-ion storage installations. For the Melbourne project, Nissan reported a projected payback period of under five years, driven primarily by savings on demand charges from the Victorian electricity grid.
The project also addresses a growing logistical challenge for automakers in Australia. With more than 10,000 first-generation Nissan Leaf vehicles on Australian roads, the number of batteries reaching end-of-automotive-life is expected to increase substantially over the next three to five years. Without domestic second-life or recycling pathways, these batteries would face limited options: long-term warehousing, export to overseas recyclers, or landfill disposal—the last of which is prohibited under several Australian state environmental regulations.
- Battery sourcing: Retired Leaf packs from Australia, New Zealand, and Japan, tested and graded at Nissan’s Dandenong South logistics center
- System integration: Relectrify’s BMS and inverter technology, designed for mixed-health battery modules
- Grid interface: Connected to the plant’s internal electrical system with capability to participate in Victoria’s demand response programs
- End-of-second-life plan: Batteries will be sent to a certified recycler once they fall below 40% residual capacity
Implications for Australia’s EV Ecosystem
Australia’s EV market has grown rapidly since the introduction of the National Electric Vehicle Strategy in 2023 and the removal of the luxury car tax on EVs. New EV sales reached over 190,000 units in 2025, more than doubling the 2023 figure. Yet the country has limited domestic battery recycling infrastructure, with Envirostream (owned by Lithium Australia) operating the only significant lithium-ion battery recycling facility, located in Melbourne’s western suburbs.
The Nissan-Relectrify project demonstrates a viable intermediary step: extending battery utility through second-life applications before eventual recycling. Several other automakers are watching the deployment closely. Hyundai Australia has indicated it is evaluating similar second-life projects for its Ioniq 5 battery packs, and the Australian Renewable Energy Agency (ARENA) has flagged second-life battery storage as a priority area for future grant rounds.
For Nissan, the Melbourne installation represents both a sustainability initiative and a proof of concept. If the system performs as projected over the next several years, the model could be replicated at Nissan facilities and dealer networks across the Asia-Pacific region—creating a scalable pathway for retired EV batteries that generates value rather than waste.
