Establishment of Domestic Joint Venture in 2023
Target to Operate Commercial Factory in 2025
[Asia Economy Reporter Choi Seoyoon] SK Innovation and secondary battery recycling specialist Seongil Hightech have joined forces to secure a leading position in the waste battery metal recycling market.
On the 13th, at the SK Seorin Building in Jongno-gu, Seoul, SK Innovation’s Portfolio Division Head Kang Dongsu, Seongil Hightech CEO Lee Gangmyeong, and other officials from both companies attended a ceremony where they agreed to jointly undertake the business of extracting lithium, nickel, cobalt, and manganese?the cathode metals of waste batteries?and signed a memorandum of understanding (MOU) to establish a joint venture.
Based on this collaboration, the two companies plan to establish a domestic joint venture next year that combines SK Innovation’s independently developed lithium hydroxide recovery technology with Seongil Hightech’s nickel, cobalt, and manganese recovery technologies. Their goal is to secure differentiated competitiveness in the rapidly growing market.
Since 2017, SK Innovation has been developing technology to recover lithium contained in end-of-life lithium-ion batteries in the form of lithium hydroxide. In December last year, they completed a demonstration plant within the Daejeon Environmental Science and Technology Institute to verify commercial feasibility, which is currently operational. Building on this, SK Innovation and Seongil Hightech plan to construct the first commercial plant in Korea, aiming for operation in 2025.
The lithium hydroxide recovered using SK Innovation’s technology boasts a high purity level suitable for use in electric vehicle batteries. The recovery rate is also known to be among the highest in the industry. Considering the current investment environment, SK Innovation plans to build the first plant in Korea and later expand overseas plants in the United States, Europe, and other regions at an appropriate time.
Seongil Hightech, which attracted strong investor interest during its initial public offering (IPO) in July, is a specialized secondary battery waste recycling company. It is the only company in Korea that recovers cobalt, nickel, manganese, copper, lithium carbonate, and other materials from lithium-ion batteries through a large-scale wet smelting plant. Based on its cooperation with SK Innovation, Seongil Hightech expects to generate additional profits by recovering lithium, which has seen the largest price increase due to supply-demand imbalances among battery metals.
Portfolio Division Head Kang said, “Waste battery metal recycling is a key new business for SK Innovation’s ‘Carbon to Green’ financial story execution and expansion of its eco-friendly business portfolio. Through cooperation with Seongil Hightech, we will rapidly establish a circular economy model that recycles battery raw materials and flexibly respond to global regulations based on differentiated recycling technology competitiveness.”
CEO Lee stated, “In line with the rapidly growing electric vehicle market, we are promoting the strengthening of global eco-friendly technology leadership, advancement of battery recycling technology, and significant expansion of material production scale. Based on this cooperation, we will enhance lithium technology and leap forward as a global top-tier recycling specialist.”
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