Samsung, Hyundai Motor, SK, LG to form battery waste recycling alliance
LG Energy Solution employees hold battery pouches at the company's Ochang electric vehicle battery plant. / Courtesy of LG Energy Solution
By Kim Hyun-bin
Major conglomerates are working to form a battery waste recycling alliance, as the electric vehicle (EV) market is set to grow exponentially in the coming years, according to company officials, Tuesday.
The alliance consists of Samsung SDI, Hyundai Motor Company, SK On and LG Energy Solution (LGES), as well as seven small and medium-sized enterprises (SMEs) related to batteries and waste resources, including Woojin Industrial Systems, Wonkwang Electric Power and Sungil Hitech.
The group plans to build the country's first all-in-one battery reuse-remanufacturing-recycling business at the the EV/ESS Battery Recycling Industrialization Center located in Naju, South Jeolla Province.
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The alliance aims to develop equipment related to battery reuse and remanufacturing, secure post-use battery test evaluation methods and dismantling processes and secure institutional and industrialization foundations for battery reuse and remanufacturing.
Carmakers and battery makers have already been collaborating on the reuse of battery waste, but this alliance is the first time for all four leading conglomerates to work in sync.
They decided to start the full-scale battery waste recycling business next month after conducting the last-minute recruitment of additional alliance partners this month.
Battery waste can be recycled in several ways depending on the remaining capacity of the used batteries. The reuse segment of the business aims to reuse old batteries for other purposes. In general, EV batteries are replaced when their capacity drops to between 70 and 80 percent of its initial level, and they can be reused in energy storage systems (ESS).
Remanufacturing is a method of repairing used batteries or parts and returning them to new product-level performance. Recycling means collecting key components and materials from battery waste for reuse.
The alliance comes as the rapid growth of EVs is anticipated. According to the vehicle registration statistics of the Ministry of Land, Infrastructure and Transport, as of the end of February, around 25 million vehicles were registered in Korea, of which 241,182 were EVs. EVs accounted for 0.96 of a percent of all registered vehicles but have been increasing gradually each year.
With the rapid spread of EVs, the number of used batteries is also increasing rapidly. According to the Korea Energy Economics Institute, the number of used batteries for EVs in Korea is expected to increase from 440 last year to 8,321 in 2025 and 78,981 in 2029.
The global battery waste market is also growing rapidly. According to Samjong KPMG's report, the battery waste recycling market will grow at an average annual rate of 33 percent from 2025.
Currently, the United States and Japan are competing at the national level to set the international technical standard for battery recycling. Korea also formed a consultative body with the European Union and started to secure battery waste recycling technologies.
“The alliance is in its initial stages and nothing concrete has been set, but the four conglomerates working together to better handle battery waste is meaningful,” an official from a major conglomerate said.