LG Energy Solution is seeking new business opportunities in the battery recycling and reuse market while establishing a resource circulation system from the production of battery materials and supplies to consumption and disposal.
On 19th, LG Energy Solution announced a partnership with Toyota Tsusho Corp., a trading company of the Toyota Group in Japan, to establish a recycling joint venture named 'GMBI' in North Carolina, USA. The annual processing capacity will be up to 13,500 tons, capable of handling over 40,000 used electric vehicle batteries and scraps annually.
The new joint venture is a pre-processing specialized factory that safely crushes and processes used batteries and manufacturing process scraps to produce 'Black Mass.' The Black Mass produced through the joint venture will be reproduced into key minerals such as lithium, cobalt, and nickel through a separate post-processing process and be recycled for battery production.
In April, LG Energy Solution also announced the establishment of a battery recycling joint venture with the leading French metal recycling corporation Derichebourg (DBG) in the Val-d'Oise region of France, with an annual capacity of 20,000 tons. LG Energy Solution aims to intensify its recycling business in France, one of the largest electric vehicle consumption areas in Europe, proactively responding to European regulations and establishing a sustainable battery ecosystem.
LG Energy Solution is also active in the reuse business of used batteries. Used battery reuse involves collecting batteries that have reached the end of their lifespan or can no longer be used in electric vehicles, followed by an initial diagnosis to select batteries suitable for reuse. After a condition check, batteries deemed safe for reuse are commercialized according to their intended use.
LG Energy Solution is installing and operating a 'Reuse Energy Storage System (ESS)' for electric vehicle charging at the Ochang Energy Plant 1 using reused batteries. This ESS system was created using batteries extracted from electric taxis that have traveled over 100,000 km. In addition, various attempts are being made using used batteries for the reuse ESS business in North America, uninterruptible power supply (UPS), and the recycling of ESS systems for backup power.
Additionally, LG Energy Solution is working to achieve 'landfill zero' at all business sites. The factory in Nanjing, China, received a 100% resource circulation rate recognition from the global certification body Underwriters Laboratories (UL) and obtained the highest platinum rating. The Ochang Energy Plant 1 was recognized for a resource circulation rate of over 90% and received a gold rating. The U.S. operations also obtained landfill zero certification from the National Sanitation Foundation (NSF), having been recognized for less than 1% of landfill waste in total waste.
A representative from LG Energy Solution said, 'We will take the lead in establishing a resource circulation system for battery resources to realize a sustainable future and customer value.'