Public-private consultative body launched to boost EV battery service sector

[Photo by MK DB]

In a concerted effort to expand the electric vehicle (EV) battery service market, major South Korean companies, including Hyundai Motor Co. and LG Energy Solution Ltd., have joined forces with the government.

The Korea Battery Industry Association (KBIA) announced on Tuesday the launch of a public-private joint consultative body dedicated to EV battery services. This initiative aims to foster cooperation between government bodies and leading companies in the EV sector.

The launch event, held in Seoul, saw participation from the Ministry of Trade, Industry, and Energy, the Ministry of Land, Infrastructure, and Transport, and the Ministry of Environment, along with companies including Hyundai Motor, Kia Corp., Hyundai Glovis Co., LG Energy Solution, SK on Co., and PM Grow Co.

EV battery services encompass a wide range of lifecycle management activities from charging and maintenance to replacement and recycling of batteries after they are installed in vehicles.

With the anticipated increase in EV adoption, the EV battery service market is expected to grow significantly.

According to SNE Research, global demand for EVs is projected to reach 59.01 million units by 2030, with used battery generation expected to hit 338 GWh.

The Korea Chamber of Commerce and Industry hosted a forum on the same day to discuss the development of the EV battery service industry.

During the forum, eight promising service models were presented, which were identified by the industry as key areas of growth. These models include battery performance diagnostics, battery subscription and replacement services, carbon credit trading, diagnostics and evaluation of remanufactured batteries, mobile charging services, power trading platforms, battery collection, transportation, storage, and financial services.

Prior to the event, the KBIA and the Korea Automobile Manufacturers Association (KAMA) co-hosted a business forum focused on fostering the EV battery service industry.

The forum addressed major consumer concerns, such as charging infrastructure and EV safety, by highlighting solutions like battery performance diagnostics, battery subscription and replacement, and mobile charging services.

Hyundai Capital introduced financial services to incentivize EV purchases. These include financial services, which provides buyer incentives based on the residual value of the battery. PM Grow showcased its greenhouse gas reduction credit issuance business.