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| Workers move used electric vehicle batteries for recycling. Korea Times file |
By Lee Kyung-min
The government has launched the K-Recycling Alliance, a public-private cooperation initiative whereby recycling of key minerals will be promoted and strategized to stabilize the supply chain, the energy ministry said.
Propelling the initiative are the growing uncertainties in the global supply chain, brought on by Russia's invasion of Ukraine and the drawn-out hegemony-oriented U.S.-China trade feud. Many local manufacturers have long stressed the need to fortify self-reliance in the procurement of key materials to limit blowback from global geopolitical volatilities, a key factor that can disrupt the Korean economy which isn't resource rich.
The government-led drive is the latest in a series of industrial waste recycling efforts spearheaded by local conglomerates. Hyundai Motor Group and Samsung SDI, SK On, LG Energy Solution ― three battery manufacturing affiliates of Samsung, SK and LG Groups ― formed a private alliance to foster battery recycling in May.
According to the Korea Energy Economics Institute (KEEI), the number of used electric vehicle (EV) batteries is expected to spike to 8,321 by 2025, a 19-fold increase from 440 last year. The figure will rocket further to 78,981 by 2029.
The used EV battery business is a lucrative growth industry, as evidenced by an average annual growth of 33 percent from 2025 through 2040, exceeding $57.3 billion (76.8 trillion won) in market size, according to a report by Samjeong KPMG, a local accounting and advisory service provider.
Forum
The Ministry of Trade, Industry and Energy said it held a forum attended by officials of seven state-run and private organizations at Glad Hotel in Yeouido, Seoul.
Included were research institutes and business interest groups representing non-ferrous metals, referring to alloys or metals that do not contain any appreciable amounts of iron.
They signed an agreement to foster cooperation to nurture human resources, outline policy assistance and provide technological support and financing opportunities.
"The need to fortify the local supply of key mineral and other core materials is all the more critical, a longstanding task for Korea which relies on imports for most of them to power manufacturing," Second Vice Minister of Trade, Industry and Energy Park Il-joon said at the forum.
Used EV batteries can be recycled depending on their remaining capacity. Some are used as energy storage systems (ESS). Others are refurbished to give like-new performance.
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