Gov't outlines policy for installation of used batteries in EVs

채사라 2024. 7. 10. 17:52
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The government outlined its policy for the used battery market, which classifies them according to suitability for installation in EVs, other battery products or mineral extraction.
An EV charges at a charging station in central Soul on May 9. [YONHAP]

Korean consumers who wish to purchase electric vehicles equipped with quality-guaranteed used batteries will be able to do so, likely at a discount, starting from 2027.

The government on Wednesday outlined detailed policies for the activation of the used battery market, which requires owners, car manufacturers and insurers to conduct performance evaluations of EVs before offloading them. The plan comes in anticipation of the retirement of 100,000 batteries in the country by 2030.

The used batteries will be evaluated for various criteria, including performance and safety, and rated into three classifications: remanufacture, reuse and recycle.

"Remanufacture" refers to batteries that maintain good enough quality to be reassembled into EVs after only replacing some components, according to the Ministry of Strategy and Finance.

"Reuse" applies to batteries that cannot be re-installed in EVs but are suitable for other battery products like energy storage systems, while "recycle" refers to those that cannot be reused but have extractable raw materials like nickel, cobalt and lithium.

Car manufacturers will be able to purchase "remanufactured" batteries for installation in EVs, which must be marked as made with "remanufactured batteries" when going on sale.

"The government will set a retail system for reusable batteries to secure transparency and safety," the Finance Ministry said in a statement.

The government on Wednesday also announced that it will launch a certification system for raw battery materials by 2025 in a bid to respond to the strengthened regulations of the European Union (EU) that require battery makers to maintain a certain threshold of recycled materials in their batteries.

The EU's rules clarify that new batteries must contain at least 16 percent recycled cobalt, 85 percent recycled lead and 6 percent recycled lithium and nickel from 2031.

Korean firms are currently paying heavy costs for certifications like the Global Recycled Standard (GRS) and Underwriters Laboratories (UL), and Korea aims to establish its own to offer the process more cheaply.

"Getting a GRS or UL certification generally costs up to 10 million won ($7,230) for each product, and also comes with a risk of leaking the firm's trade secrets," the Finance Ministry said. "Korea will provide a certification system that can be used globally to ease the burden on companies and to stabilize supply chain."

BY SARAH CHEA [chea.sarah@joongang.co.kr]

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