Kia signs multilateral business agreement to revitalize electric vehicle battery ecosystem

Kia is establishing the first public-private partnership in Korea to create a circulation ecosystem for electric vehicle batteries.

Kia and five electric vehicle battery-related companies and local governments, including Hyundai Glovis, Eva Cycle, EcoPro, Gyeongbuk Provincial Office, and Gyeongbuk Techno Park, held the ‘2023 International Secondary Battery Forum for Entering the Global Market’ held at the Hilton Hotel in Gyeongju on the 6th (Friday). A ‘MOU to establish an alliance to revitalize the battery ecosystem’ was signed.

This business agreement was made to implement a pilot project to create a battery ecosystem based on cooperation between companies and local governments as the need for verification of the overall battery recycling process is emerging to utilize the increasing amount of waste electric vehicle batteries.

One of the important factors in examining the economic feasibility of recycling waste batteries and the feasibility of pursuing a new business is establishing ‘battery residual value evaluation standards’, and the purpose of this pilot project is to analyze the value in detail and realistically.

In particular, this project is a new type of project that is carried out by establishing a cooperation system across the entire battery industry, from automobile manufacturers to battery recycling companies, secondary battery material manufacturers, and local governments, based on Korea’s first public-private cooperation.

In the pilot project, ▲Kia oversees the pilot project including the supply of waste batteries ▲Hyundai Glovis reviews the business feasibility of recycling waste batteries ▲Eva Cycle dismantles/dismantles batteries and manufactures black powder[1] ▲EcoPro extracts raw materials and produces positive electrodes Remanufacturing ▲Gyeongbuk Provincial Office and Gyeongbuk Techno Park are responsible for improving regulations related to battery recycling and creating an environment for new business technology development.

[1: Black powder selected after crushing lithium-ion batteries, intermediate process raw material containing nickel, lithium, cobalt, manganese, etc.]

During the pilot project, participating companies and local governments plan to implement the entire process related to battery recycling by inputting actual waste batteries.

Through this, we plan to obtain detailed data at all stages of the battery cycle process, from raw material extraction to battery production and installation in electric vehicles, quantify it, and review economic feasibility.

In addition, we will closely analyze the empirical results and use them as a stepping stone for forming a full-fledged battery recycling industry ecosystem, and also examine the possibility of utilizing them to promote new businesses.

Based on the empirical results of the pilot project, Kia created a battery circulation ecosystem by improving the residual value of electric vehicle batteries, and further launched ‘BaaS’, a battery life cycle linked service such as ‘battery subscription service’ and ‘battery refurbishment service'[2]. (Battery as a Service)'[3] The policy is to take the lead in commercialization.

A Kia official said, “If we measure the value of raw materials extracted through the actual battery recycling process through this business agreement and derive results by collecting and analyzing data for each process, it will become a reference point in creating a battery circulation ecosystem in the future.” “Through this project, we will increase the value of batteries and further link with the BaaS business, ultimately contributing greatly to the expansion of electric vehicle adoption.”