Government to Promote Used Battery Industry Development
Mandatory 'Battery Inspection' for Electric Vehicle Scrapping
Top-Grade Batteries Can Be Used for Remanufacturing
Vehicle Owners Benefit from Fair Battery Pricing at Scrapping
The government is laying the groundwork to foster the ‘used battery’ industry. Until now, replacing electric vehicle batteries required purchasing expensive new batteries, but going forward, consumers will be able to choose affordable remanufactured batteries. Additionally, electric vehicle owners will receive fair prices for their batteries at the time of vehicle scrappage based on graded evaluations.
On the 10th, the government announced the ‘Legal, Institutional, and Infrastructure Establishment Plan for Fostering the Used Battery Industry’ at the Economic Ministers’ Meeting held at the Government Seoul Office. This plan is a follow-up measure to the ‘Comprehensive Plan to Strengthen the Competitiveness of the Secondary Battery Industry’ released last year.
The plan includes the introduction of a ‘pre-removal performance evaluation’ for electric vehicle batteries. Vehicle owners, insurance companies, and vehicle manufacturers must have the battery performance evaluated at an automobile inspection center before removing the battery from an electric vehicle. The evaluator, designated by the Minister of Land, Infrastructure and Transport, will assess the battery’s grade by checking its performance, safety, and various maintenance, inspection, and recall histories.
Batteries that receive the highest ‘top grade’ can be used for remanufacturing. This means that parts of the electric vehicle battery can be replaced or repaired and then recycled back into electric vehicle batteries. Until now, there were no remanufacturing regulations, so consumers had to purchase new batteries costing about half the price of the vehicle even for minor issues. With performance evaluations in place, consumers will be able to choose between expensive new batteries and affordable remanufactured batteries.
Receiving Fair Prices for Batteries When Scrapping Electric Vehicles
If a battery receives a ‘mid-grade’ evaluation, it is classified as a reused battery. Like top-grade batteries, mid-grade batteries can be reassembled and reused in areas requiring batteries, such as energy storage systems (ESS). However, they cannot be reused as electric vehicle batteries. Batteries rated as ‘low-grade’ are considered waste and are subjected to crushing and shredding. This process extracts key minerals such as lithium, cobalt, and nickel.
Vehicle owners will benefit from receiving appropriate battery prices when scrapping their vehicles. Currently, when scrapping an electric vehicle, owners receive minimal compensation because the battery’s performance is unknown. However, with mandatory performance evaluations, the battery’s condition can be accurately assessed, allowing for precise calculation of scrappage costs and compensation.
The government will also support battery manufacturers in using recycled raw materials. According to the European Union (EU) battery regulations, battery manufacturers must use a certain percentage of recycled raw materials starting in 2031, making the utilization of low-grade batteries essential. Furthermore, manufacturers must obtain costly separate certifications overseas, but the government plans to operate related certification systems to reduce the burden on domestic companies.
The government expects active use of used batteries. An official from the Ministry of Environment stated, “Until now, removed batteries were automatically considered waste batteries subject to the Waste Management Act, making their utilization difficult. With performance evaluations, they will be regarded as a kind of new component, opening the way for private companies to freely utilize used batteries.”
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