The first pre-processing facility in Korea capable of recycling LFP (Lithium Iron Phosphate) lithium secondary batteries has been completed. The used battery recycling industry, expected to grow rapidly alongside the expansion of electric vehicle adoption, is anticipated to enter full-scale development.
Battery Solutions, a specialized battery recycling company, announced on the 8th that it held a ‘LFP Battery Recycling Pre-processing Facility Completion Ceremony’ at its headquarters on Ogyegongdan-gil, Geumho-eup, Yeongcheon-si, Gyeongsangbuk-do at 3 p.m. on the 7th. The event was graced by the presence of Choi Ki-moon, Mayor of Yeongcheon, and Kim Hong-in, Director of the Circular Resources Research Center at the Korea Institute of Geoscience and Mineral Resources.
This is the first pre-processing plant related to LFP battery recycling established in Korea. Battery Solutions has been developing pre- and post-processing procedures for electric vehicle battery recycling in collaboration with the Korea Institute of Geoscience and Mineral Resources, a government-affiliated institution. The completion of this pre-processing facility marks the first achievement of this effort.
Recycling used batteries from electric vehicles is divided into pre-processing and post-processing stages. In the pre-processing stage, batteries undergo sorting, discharging, crushing, and drying to produce a black powder known as black powder. The post-processing stage involves extracting valuable metals from this black powder.
The pre-processing facility completed by Battery Solutions can produce up to 7,000 tons of black powder annually. According to the company, this amount corresponds to recovering lithium from approximately 40,000 electric vehicles (based on a 500kg battery pack). Battery Solutions also announced plans for expansion to transition to a large-scale mass production line in the future.
The global market for recycling used electric vehicle batteries is a promising industry expected to grow to a scale of 305 trillion KRW by 2040. According to market research firm SNE Research, the number of global electric vehicle scrappages will increase nearly eightfold from 560,000 units in 2025 to 4.11 million units in 2030. It is expected to surge further to 42.27 million units by 2040.
Kim Min-hong, CEO of Battery Solutions, stated, “Starting this year, when the batteries of previously distributed electric vehicles reach the end of their lifespan, used batteries will gradually flood the market. Scarce metals such as lithium, which have limited reserves, must ultimately be recycled 100%, and this will present a great opportunity for companies equipped with the relevant technology.”
In March last year, Battery Solutions partnered with Suny Group, a Chinese battery recycling equipment specialist, signing a contract for the design and installation of a lithium battery recycling plant, and began full-scale equipment construction in the second half of the year. Simultaneously, starting in 2023, Battery Solutions began technology transfer related to NCM (Nickel-Cobalt-Manganese) battery post-processing with the Korea Institute of Geoscience and Mineral Resources and, through a joint research and development memorandum of understanding (MOU) on LFP battery recycling, emerged as the nation’s first LFP recycling national R&D partner.
Battery Solutions is a solid company that generates profits annually in its core business of lead-acid battery recycling. This year, through facility expansion including increasing the rotary kiln capacity, it plans to increase production capacity of its main products, pure lead and alloy lead, by 1.8 times. Once capacity expansion is completed in the first half of this year, sales in the second half are expected to exceed 100 billion KRW.
CEO Kim Min-hong emphasized, “Following the LFP battery pre-processing facility, the blueprint for new business areas is becoming concrete through collaboration with the Korea Institute of Geoscience and Mineral Resources on post-processing technology for NCM lithium batteries. We will leverage our accumulated know-how in handling non-ferrous metals to optimize production yield in the upcoming post-processing stages.”
Battery Solutions is a subsidiary of the listed company KPS. Battery Solutions has signed a lead underwriting agreement with KB Securities aiming to enter the KOSDAQ market this year, with Kiwoom Securities serving as a joint underwriter. According to the securities industry in Yeouido, Battery Solutions is the only comprehensive battery recycling company capable of securing market leadership not only in the NCM battery sector but also in the LFP battery market.
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