[Reading Science] "Metal worth $80,000 per ton inside... A 68 trillion won recycling market opens"

How Far Has Used Battery Recycling Come?
By 2030, 100,000 Used Electric Vehicle Batteries Annually in Korea
Capturing Three Benefits: Environment, Resources, and Cost

"It is possible to catch three rabbits at once: 'environment, cost, and resources.'" This refers to the technology for recycling spent batteries. Batteries have become the mainstream energy storage and supply devices in the era of the Fourth Industrial Revolution. For South Korea, which ranks first in battery technology, to fully capitalize on this opportunity, it must also secure superiority in spent battery recycling technology. While researching, developing (R&D), and selling new batteries is important, a virtuous cycle can be achieved and even stronger competitiveness secured if supported by the recycling technology for the increasing volume of spent batteries over time.

Image of a used battery.

Spent Battery Recycling is ‘Essential’

Efforts to reduce carbon emissions due to climate change and the restructuring of supply chains driven by technological hegemony competition are key factors promoting spent battery recycling. During the battery manufacturing process, carbon dioxide emissions occur 20% at the cell stage and 80% at the major raw material and component stages such as cathode and anode materials. Using Chinese raw materials like cobalt and nickel results in even higher carbon dioxide emissions. Particularly in Europe, under this rationale, there is an attempt to rebuild the battery value chain by linking raw material supply and recycling. European cathode material companies Umicore and BASF are representative examples. They are conducting R&D, including operating dry recycling pilots, to replace cathode material suppliers centered in South Korea and China.

Moreover, the increasing prices and depletion of rare metals used in batteries emphasize the need for recycling to secure stable materials. Rare metals such as lithium, cobalt, nickel, and manganese are concentrated in deposits and production in a few countries. This is especially why South Korea urgently needs to dismantle, crush, and incinerate spent batteries to recover and reuse these materials. South Korea has no lithium deposits and imports over 10,000 tons annually at 100% reliance. Globally, supply is predicted to fall short of demand. The international price of lithium carbonate soared 511% from $9,000 per ton in February 2021 to $55,000 in February last year. Lithium hydroxide also surged 380% during the same period. Nickel demand for batteries grew from 40,000 tons in 2018 to 287,000 tons this year, an average annual growth of 50%, making stable supply essential. The recent export ban on raw ore by Indonesia, the largest exporter, has made this even more urgent. Cobalt prices also surged to $80,000 per ton in 2022 due to supply instability caused by political unrest in the Democratic Republic of Congo, the largest producer, with prices expected to continue rising. Additionally, the U.S. Inflation Reduction Act (IRA), which effectively restricts the use of Chinese battery materials, has had a significant impact. Furthermore, recycling can help resolve environmental destruction and human rights issues arising from battery material mining and refining processes.

Scale of Electric Vehicle Waste Battery Generation

100,000 Units Disposed Annually

The main sources of spent batteries are electric vehicle (EV) batteries, energy storage systems (ESS), and IT devices, with EVs accounting for the largest share. EV batteries, which began to increase significantly in the late 2010s, typically have a lifespan of about 5 to 10 years. As the number of EVs grows, the supply of spent batteries is rapidly increasing. In South Korea, the volume of spent EV batteries is expected to surge from 275 units in 2020 to 107,520 units in 2030. This trend is similar worldwide. Global battery shipments were 221 GWh in 2020 and are predicted to grow at an average annual rate of 32%, reaching 3,670 GWh by 2030. The share of EV batteries is expected to increase from 65% in 2020 to 89% in 2030, indicating that EV demand is driving battery market growth. In 2020, SNE Research forecasted that the global spent battery recycling market would grow at an average annual rate of 33%, reaching approximately 68 trillion KRW in the 2040s.

Accordingly, major countries and companies are actively engaging in R&D and industrialization of spent battery recycling. The U.S. aims to increase battery recycling rates from the current 5% to 90%, implementing incentive policies. Europe plans to mandate the use of a certain percentage of recycled materials by 2030. China is pursuing goals to recover 98% of nickel, cobalt, and manganese, and 85% of lithium.

Overview of Waste Battery Recycling Technology.

Over 90% Recovery Required

Globally, companies that have commercialized rare metal recovery through spent battery recycling include South Korea’s Sungil HiTech, Germany’s Umicore, and China’s Brump and GEM. Wet or combined dry-wet methods are used. The wet method involves pre-treatment such as discharge, then sinking the batteries in water to separate iron and aluminum, followed by dissolving in sulfuric acid solution to extract metals. The combined dry-wet method melts spent batteries at high temperatures, separates them into matte and slag, and extracts metals from the matte. Intense global competition exists in technology development. In South Korea, besides Sungil HiTech, the three major battery companies Samsung SDI, SK Innovation, and LG Energy Solution, as well as EcoPro and Doosan Heavy Industries, are actively developing processes and technologies. Globally, companies like Tesla, CATL, and specialized battery manufacturers are competing. South Korea’s technology level is estimated to be about 81.1% of the U.S. level (as of 2020), lagging by approximately 3.7 years.

To gain leadership in the spent battery recycling market, it is necessary to further refine large-capacity EV spent battery recycling technology. Jeongsoo Son, a senior researcher at the Korea Institute of Geoscience and Mineral Resources, explained, "To secure recycling economics, variables such as the type of raw materials, recovery status, supply volume, government subsidies, and recovery technology level are factors. Many variables remain fluid, making it difficult to discuss the economics of EV spent battery recycling at this time." EV spent batteries, weighing around 500 kg, incur high costs and explosion risks during discharge, dismantling, and crushing processes. Another major challenge is resource recovery from components such as cases, cooling devices, and cables, which account for 40% of the total pack weight.

Senior researcher Son added, "Lithium recovery rates need to exceed 95%, but the process is complex and difficult to achieve. Until now, research has focused only on cells and modules, and research on recycling entire packs has just begun." He emphasized, "With eco-friendly vehicles becoming mainstream, the volume of EV spent batteries will increase tremendously, and supply of Chinese materials may become unstable. Therefore, spent battery recycling has become an essential task." [