“With our own recycling technology, we have been able to recover 92% of waste battery materials.”
Tesla declared this in its annual strategic report ‘2020 Tesla Impact Report’ released on the 9th (local time). The industry predicts that it will take some time for Tesla to achieve a 92% recovery rate in the actual process, but it is believed that it has already secured the related technology in the R&D stage. Tesla also stated that “as of last year, 1300 tons of nickel, 400 tons of copper, and 80 tons of cobalt were recycled.”
Investments by companies to discover the waste battery market as a ‘new vein’ are accelerating. It is because if it is possible to make a new battery by extracting materials from the exhausted and discarded electric vehicle battery, it is possible to catch both rabbits of eco-friendliness and the stability of securing resources.
Battery industry experts predict that this year will be a watershed in which electric vehicle waste batteries begin to pour out around the world. This is because the global electric vehicle market has grown rapidly, centered on China, since 2012, and in general, electric vehicle batteries run out of life after driving 150,000 to 200,000 km for 5 to 10 years. In addition, the battle to secure key battery materials such as lithium, nickel, and cobalt is intensifying. The global lithium transaction price recorded an average of $85,50 per ton in July, more than double that of July last year ($34,138). For nickel and cobalt, supply has not kept pace with demand. That is why Tesla noted in its report that “the bulk recovery of battery material is expected to result in significant cost savings in the long run.” The Korean government and companies are also aware of the importance of the waste battery industry and are actively developing the market. At the end of last year, the Ministry of Environment revised the Air Environment Conservation Act to abolish the obligation to return waste batteries to local governments, while also allowing the private sale of waste batteries from 2022. Unlike the early days of electric vehicle dissemination, the importance of using waste batteries has increased, thus opening up the relevant market.
The strategic directions of the three domestic battery companies are different. SK Innovation is active in extracting materials from waste batteries. SK Innovation is building a pilot plant in the Daejeon Environmental Science and Technology Institute after completing the test of its self-developed lithium recovery technology. When performance verification is completed at the pilot plant, the company plans to consider constructing commercial plants near its battery plants in Europe, China, and the United States. An SK Innovation official said, “Chairman Tae-won Chey is emphasizing the competitiveness of not only finished battery products but also the materials market, especially in accordance with the recent movement in battery development by the automakers.”
On the other hand, LG Energy Solutions is paying attention to the ‘reuse’ of waste batteries. It has made a preemptive investment in technology to reuse waste batteries as rechargeable energy storage systems (ESSs). Recently, a ‘charging ESS system for electric vehicles’ made by reusing waste batteries was installed at the Ochang Plant in North Chungcheong Province. It is an electric vehicle charging system created over a one-year development period using batteries removed from electric taxis that have traveled more than 100,000 km.
Samsung SDI has not yet started developing its own technology for using waste batteries. Instead, it is entering indirectly through collaboration and equity investment with Sungil Hi-Tech and PM Grow, which are domestic companies with waste battery recycling technology.
According to Guidehouse Insight, a market research company, the global battery production capacity that can be created from waste batteries is growing at a CAGR of from 531 megawatt hours (MWh) last year to 1.2 gigawatt hours (GWh) this year, 11.8 GWh in 2025, and 136 GWh in 2030. This figure is estimated to be close to 74%. An official from the battery industry predicted, “After 2040, more minerals obtained through recycling will be used to manufacture batteries than minerals extracted from mines.”
Reporter Doyoung Kwak now@donga.com Go to reporter page>
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