The explosive growth of electric vehicles (EVs) is leading to a surge in retired EV batteries, which are typically recycled despite having nearly 80% available capacity. Repurposing automotive batteries for second-use battery energy storage systems (2-BESS) has both economical and environmental benefits. The challenge with second-use batteries is the heterogeneity in their state of health. This paper introduces a new strategy to optimize 2-BESS performance despite the heterogeneity of individual batteries while reducing the cost of power conversion. In this paper, the statistical distribution of the power heterogeneity in the supply of batteries is used to optimize the choice of power converters and design the power flow within the battery energy storage system (BESS) to optimize power capability. By leveraging a new lite-sparse hierarchical partial power processing (LS-HiPPP) approach, we study how a hierarchy in partial power processing (PPP) partitions power converters to significantly reduce converter ratings, process less power to achieve high system efficiency with lower cost (lower efficiency) converters, and take advantage of economies of scale by requiring only a minimal number of sets of identical converters. Our results demonstrate that LS-HiPPP architectures offer the best tradeoff between battery utilization and converter cost and have higher system efficiency than conventional partial power processing (C-PPP) in all cases.
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