CEO Minhong Kim of Battery Solutions (right) and CEO Myeongheon Kwak of Inseon Motors (left) signed an MOU related to electric vehicle battery recycling at Inseon Motors headquarters in Goyang-si, Gyeonggi-do on the 11th and are taking a commemorative photo. Photo by KPS
Battery Solutions, a subsidiary of KPS (CEO Kim Min-hong), announced on the 12th that it has signed a memorandum of understanding (MOU) on electric vehicle battery recycling with Inseon Motors (CEO Kwak Myung-heon), the No. 1 company in the domestic automobile dismantling industry. Recently, Battery Solutions, which completed the first pre-processing facility for LFP (Lithium Iron Phosphate) battery recycling in Korea, is expanding its supply sources of used batteries as raw materials one by one, laying a favorable foundation for market dominance.
Battery Solutions and Inseon Motors held an MOU signing ceremony on the 11th at Inseon Motors headquarters in Goyang-si, Gyeonggi-do, attended by the CEOs of both companies. The core content is that Inseon Motors will supply LFP batteries from end-of-life electric vehicles, and Battery Solutions will receive them to promote recycling business such as sorting, crushing, and black powder production.
Inseon Motors is a specialized dismantling company with the largest automobile dismantling facility in Korea. Recently, it has established a dedicated dismantling facility for electric vehicles and built a used electric vehicle battery recovery system, leading the creation of the related ecosystem.
With the stable supply of used batteries becoming visible through this business agreement, Battery Solutions is expected to improve its performance in the short term, such as increased sales, and in the long term, to secure a leading position in the domestic electric vehicle battery recycling market, which is expected to grow to 12 trillion won by 2030.
Battery Solutions previously held a completion ceremony for the first pre-processing facility capable of recycling LFP batteries in Korea on the 7th of last month. The annual black powder production capacity is up to 7,000 tons (t), which can recover lithium equivalent to about 40,000 electric vehicles.
Battery Solutions has also been in behind-the-scenes talks since last year to sign a partnership contract with BYD, a Chinese electric vehicle company that entered the domestic market this year. Since most BYD electric vehicles use LFP batteries, companies that already have related recycling facilities in Korea are expected to attract attention.
Kim Min-hong, CEO of Battery Solutions, said, “If we secure investment funds through a stock market listing this year, we will be able to accelerate the infrastructure construction for electric vehicle battery recycling. We will speed up planned investments and new business ventures to lead the market not only in our core business of lead-acid battery recycling but also in the electric vehicle end-of-life battery recycling industry, which will become a major trend in the future.”
Meanwhile, Battery Solutions plans to enter the KOSDAQ market this year through an initial public offering (IPO) process. KB Securities was selected as the lead underwriter, and Kiwoom Securities as the co-underwriter. The company will soon submit the preliminary listing examination application to the Korea Exchange and proceed with related follow-up procedures.
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