The second-life battery industry represents a futuristic and economically valuable sector. (Image courtesy of Korea Bizwire)
SEOUL, Nov. 20 (Korea Bizwire) – South Korea’s battery industry is intensifying efforts to establish a systematic foundation to dominate the rapidly growing second-life battery market, driven by the widespread adoption of electric vehicles.
The second-life battery industry represents a futuristic and economically valuable sector. It also has the potential to contribute to waste reduction and stabilize the raw material supply network through the recycling of essential minerals used in batteries.
As countries worldwide compete for dominance in the second-life battery market, South Korea’s battery recycling technology lags behind major players. The local industry is advocating for the creation of an environment conducive to the development of these crucial technologies.
According to industry sources on Sunday, the ‘Battery Alliance,’ a consortium comprising 24 private companies and public institutions involved in battery production, recycling, electric vehicle production, distribution, and logistics, submitted an industry proposal on an integrated second-life battery management system. This proposal includes recommendations on promoting battery recycling and a corresponding legislative proposal reflecting these suggestions.
After a year of discussions, with the Korea Battery Industry Association serving as an administrative secretary, the Battery Alliance reached an agreement on key initiatives. These include establishing a private-centered second-life battery transaction system, creating an integrated history management system for the entire battery lifecycle, formulating market transaction rules for a fair trading market, introducing a renewable material usage obligation system, and securing government support for the cultivation of the second-life battery industry.
A crucial request from the industry is the standardization of the terms ‘second-life battery’ and ‘waste battery,’ which have been used interchangeably, into ‘second-life battery.’
The industry emphasizes the need to raise awareness that a battery is not waste containing heavy metals but a safe resource that is recyclable. Specifically, the industry urges that, whether batteries are reused, remade, or recycled, they should be recognized not as simple waste but as circular resources exempt from various waste-related regulations.
Remaking involves separating battery cells from second-life batteries, reassembling them, and reusing them in electric vehicles. Reuse refers to using batteries for other purposes, including energy storage systems (ESS). Recycling entails completely dismantling battery compositions through demolition or melting with high-temperature heat and extracting raw material metals for reuse.
According to market research firm SNE Research, the number of scrapped EVs globally is expected to grow to 4.11 million units in 2030 and 42.27 million units in 2050. Accordingly, the size of the second-life battery market is likely to jump from 70 trillion won in 2030 to 230 trillion won in 2040 and 600 trillion won in 2050.
Kevin Lee (kevinlee@koreabizwire.com)
