The South Korean government will monitor electric vehicle (EV) battery life cycles to share information on the lifespan, performance and accident history of batteries to promote their recycling.
In a ministerial meeting on economic affairs on Wednesday, the government decided to establish an EV battery full life cycle history management system by 2027 and open an internet portal where EV manufacturers can share the history of their batteries.
The system will include evaluating waste battery performance before scrapping a car, certifying recycled raw materials used for batteries and undertaking safety inspections for EVs powered by recycled batteries.
It will iron out policy details and bring the relevant bill to the parliament this year.
The government expects EV battery recycling to help domestic EV makers cope with higher trade barriers in their top export markets such as the US and Europe, where they are pushed to source raw materials or assemble cars in their regions to qualify for state subsidies.
The average lifespan of EV batteries currently on the market is estimated to exceed 10 years. Considering that EVs began catching on in the mid-2010s, the battery market will be flooded with waste batteries in the next few years.
The global waste battery market is expected to grow to $208.9 billion by 2024 from $8 billion in 2022, according to SNE Research.
There are two ways to recycle waste batteries. If its energy storage capacity remains at 90% of a new battery, it can be reused in a new car after a minor repair.
If the capacity falls to about 80%, it can be used as electric storage devices. When the lifespan of the energy storage system (ESS) is over, it can be melted down, turned to powder and its key minerals such as lithium and nickel extracted.
Until now, waste batteries have been recycled mainly for ESS devices and mineral extraction.
Meanwhile, a battery industry official said the battery life cycle management system may not work unless automakers share with battery cell manufacturers EV battery performance, which could vary depending on driving habits.
Battery manufacturers have little knowledge of their products' performance in EVs and their lifespan.
