The government will begin to establish a 'battery recycling ecosystem.' A registration system for businesses that distribute or reuse used batteries is expected to be introduced. Safety management standards based on the purpose of battery use and a system for managing battery history will also be prepared. The industry expects that as a legal framework has been established for the previously unregulated used battery industry, the creation of a new market will accelerate.
According to the political sector on the 31st, the government plans to introduce a legislative proposal titled 'Act on fostering the used battery industry and supporting the stabilization of supply chains' through member legislation as early as April. The main proponent is Park Hyung-soo, a member of the National Assembly from the People Power Party, who is affiliated with the National Assembly's Committee on Trade, Industry, Energy, Small and Medium Enterprises.
Initially, the government announced that it would establish the law by the end of last year. However, discussions with various related ministries delayed the preparation of the bill beyond the target. Park noted, "I have included the standards overseen by various ministries such as the Ministry of Economy and Finance, Ministry of Trade, Industry and Energy, Ministry of Environment, and Ministry of Land, Infrastructure and Transport in one bill" and added, "The process of refining the punishment regulations for violations of the law, such as serious and minor offenses, has also further delayed the preparation of the bill."
Song Jae-bong, a member of the Democratic Party, also introduced a similar bill on the 12th of last month. This proposal was created based on a suggestion submitted to the government by the battery industry at the end of 2023. Park’s proposal included improvements based on consultations with the government, using this initial proposal as a foundation.
According to Park, the core of the bill is to establish standards for cases of 'reuse of used batteries.' It distinguishes between 'battery remanufacturing' for reused batteries in electric vehicles, 'battery repurposing' for batteries repurposed for other uses such as energy storage systems (ESS), and 'battery recycling' for extracting valuable metals such as lithium and cobalt from used batteries.
Once the bill is established, the government will prepare usage regulations based on criteria such as the State of Health (SOH) of the batteries through subordinate legislation. For example, if the remaining lifespan is more than 70%, remanufacturing, repurposing, and recycling will be allowed; if it is more than 50%, repurposing and recycling will be permitted; and if it is more than 40%, only recycling will be possible.
Additionally, since there are currently no regulations related to used batteries, the bill will also include provisions to establish a legal framework. It will establish a registration system for businesses, safety management systems, an integrated history management system, and a renewable resource certification system.
The registration system classifies businesses handling used batteries into specific categories. In detail, it distinguishes between 'distribution businesses' that sell, broker, or mediate used batteries and 'utilization businesses' that wish to reuse used batteries.
While Song’s proposal included the definition of 'acquisition businesses' that can transfer ownership from the original owner of a battery after separating it from an electric vehicle, this content was removed from the government's proposal. Furthermore, Song's proposal established a single utilization business registration criterion that covers all remanufacturing, repurposing, and recycling businesses, while the government's proposal differentiates the business criteria based on their intended purposes.
The safety management system stipulates ▲performance evaluation before the removal of used batteries ▲safety inspections before distribution ▲regular inspection afterward. While the government's proposal and Song’s seem largely similar, the government’s proposal requires a safety management system to be established that distinguishes between remanufactured and repurposed products.
In addition, both the government’s proposal and Song’s include provisions for an 'integrated history management system' that tracks used batteries throughout their lifecycle and certification systems for the production and use of valuable metals (renewable resources) extracted from batteries.
With the new legal framework established, the used battery market is expected to be newly created. The Korea Environment Institute (KEI) and the Ministry of Environment predict that the number of used batteries discharged will surge from 8,321 this year to 107,500 by 2030 due to the increase in electric vehicle production.
When the bill is introduced, it is expected that discussions about the bill will begin in the National Assembly's standing committee. As the contents of the bills proposed by both parties do not differ significantly, it is anticipated that the law will be passed quickly.
An aide to Representative Park Hyung-soo stated, "The bill is currently fully prepared" and noted, "We plan to ensure that the agenda can be presented at the next meeting of the standing committee after it is introduced."