Unified Management System for Used Batteries: Trade and Climate Ministries Break Down Barriers

Building a "Battery Transaction and History Management Platform"
by Linking Information Systems Across Ministries

Integration of Recycled Material Certification and Legal Frameworks;
Joint R&D Initiatives Also Planned

Moon Sunghak, Vice Minister of Trade, Industry and Energy (left), and Keum Hansung, First Vice Minister of the Ministry of Climate, Energy and Environment, are posing for a commemorative photo after signing a memorandum of understanding to strengthen mutual cooperation in the used battery policy sector on the 7th at the Korea Productivity Center conference room in Jongno-gu, Seoul. Ministry of Trade, Industry and Energy.

The Ministry of Trade, Industry and Energy and the Ministry of Climate, Energy and Environment are breaking down inter-ministerial barriers to foster the used battery industry. They will link the information systems and certification systems previously managed separately by each ministry for the distribution, reuse, and recycling of used batteries. Additionally, they plan to revise relevant regulations and pursue joint research and development (R&D) projects.

The two ministries announced on August 7 at the Korea Productivity Center in Jongno-gu, Seoul, that they had signed a "Memorandum of Understanding to Strengthen Mutual Cooperation in the Field of Used Battery Policies." The signing ceremony was attended by Moon Sunghak, Deputy Minister of Trade, Industry and Energy, and Geum Hanseung, First Vice Minister of the Ministry of Climate, Energy and Environment.

A used battery refers to batteries previously installed in vehicles, such as electric cars, that have reached the end of their lifecycle and contain critical minerals including lithium, nickel, and cobalt. Rather than simply being waste, they are regarded as strategic resources that can be reused or from which core minerals can be recovered and reintegrated into battery production. Building an ecosystem that encompasses the collection, distribution, reuse, and recycling of used batteries is becoming essential as a way to reduce dependence on imported minerals and enhance supply chain stability.

Until now, related policies have been implemented separately by each ministry. The Ministry of Trade, Industry and Energy has been responsible for the distribution and reuse of used batteries, while the Ministry of Climate, Energy and Environment has overseen life cycle assessments (LCA) of greenhouse gas emissions and the recycling sector. With this memorandum, the two ministries have agreed to strengthen the integration of their individually managed policies and systems.

First, they will establish a "battery transaction and history management platform" that integrates the management of histories and supply chains of used batteries. By linking the information systems that are currently being developed separately by both ministries, all data regarding the distribution, reuse, and recycling of used batteries will be centrally managed. The aim is to consolidate the information that is scattered across ministries and offer an integrated public service.

They will also link the certification systems for recycled materials. Currently, the Ministry of Climate, Energy and Environment is in charge of certifying the production of recycled materials, while the Ministry of Trade, Industry and Energy manages the certification of recycled material use and content. In the future, the two ministries will align the certification targets and revise the system to allow the documents submitted for production certification within the Ministry of Climate, Energy and Environment to be used for the use certification within the Ministry of Trade, Industry and Energy. The intention is to reduce the burden on companies that currently undergo similar certification processes at both the production and use stages.

Relevant legislation regarding used batteries will also be revised jointly. Regulations will be devised so that distribution businesses can safely transport and store used batteries, and management standards applied to recycling businesses will be improved. The plan is to keep the quality of used batteries and recycled materials above a certain standard and thereby enhance the safety and reliability of the industry.

The government will also supplement regulations so that the Special Collection Centers, which are responsible for the collection and distribution of used batteries in the public sector, can continue their work. Currently, under the "Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles," the centers collect and auction batteries returned from electric vehicles registered up to December 31, 2020.

Even after the "Act on the Management and Promotion of the Used Battery Industry" comes into effect, the government plans to provide a legal basis in subordinate regulations for these centers to continue their existing collection and auction work within a specified scope. This is intended to prevent any gaps arising in the collection and distribution of used batteries during the transition period.

The two ministries will also promote joint R&D projects. The research scope will extend beyond just reuse and recycling of used batteries, to include manufacturing new batteries using recovered recycled materials. They will work to develop related technologies such as the utilization of energy storage systems (ESS) and extraction and quality management of recycled materials, alongside improving the necessary systems for technology commercialization.

A working-level consultation body will be set up to facilitate ongoing policy cooperation. This will be jointly managed by the Director General for Advanced Industrial Policy at the Ministry of Trade, Industry and Energy and the Director General of Resource Circulation Policy at the Ministry of Climate, Energy and Environment. The task force will monitor the progress of initiatives included in the memorandum and seek additional areas for collaboration.

Deputy Minister Moon stated, "In order to nurture the battery industry as a sustainable future industry, establishing a robust ecosystem for used batteries is imperative. This memorandum of understanding will break down barriers between ministries and serve as an important milestone for securing a sustainable future for Korea's battery industry."

First Vice Minister Geum also remarked, "While the adoption of electric vehicles is rapidly expanding, establishing a circular system for used batteries is a core task for realizing a sustainable circular economy. Through close cooperation between both ministries, we will build a circular system that ensures both environmental benefits and industrial competitiveness without disruption."

This content was produced with the assistance of AI translation services.