[Heavy Industry ON]Retired EV Batteries Find New Jobs in ESS...K-Battery Searches for a 'Second Life'

LG Energy Solution Launches ESS Demonstration Using Used Batteries
Over 100,000 Units to Be Disposed of in 2030
The Big Three Battery Makers Expand Reuse and Recycling Efforts

The battery industry is accelerating its efforts to find a "second life" for batteries that have reached the end of their initial service in electric vehicles (EVs). Batteries recovered from EVs undergo a performance assessment. If their remaining capacity is sufficient, they are reused for purposes such as energy storage systems (ESS). If reuse is not feasible, core minerals such as lithium, nickel, and cobalt are recovered.

On the 10th of last month, at the Wonik P&E Dongtan Plant in Hwaseong, Gyeonggi Province, a commemorative event was held in front of the demonstration facility during the 'EV Used Battery-based UBESS Demonstration' event. Representatives from Hyundai Motor Company, Kia Corporation, LG Energy Solution, Hyundai Engineering, and Wonik P&E participated. Hyundai Motor Group.

According to industry sources on October 4, LG Energy Solution, in collaboration with Hyundai Motor Company, Kia, Hyundai Engineering, and Wonik P&E, launched an ESS demonstration project utilizing used EV batteries on the 10th of last month. This is the first domestic demonstration case using batteries retired from vehicles built on the dedicated E-GMP EV platform.

The demonstration facility, established at the Wonik P&E Dongtan plant in Hwaseong, Gyeonggi Province, has a capacity of 200 kWh. The system stores electricity during off-peak hours when rates are low and uses it for fast charging of EVs during peak pricing hours. It also helps distribute the spike in power demand that occurs during rapid charging.

Hyundai Motor Company and Kia oversee technical verification and development of business models. LG Energy Solution manufactures ESS units using used battery packs provided by Hyundai Motor Company and Kia, and supports battery diagnostics as well as system performance and safety verification. The participating companies plan to comprehensively verify charge/discharge control algorithms, system safety and reliability, battery performance maintenance characteristics, charging service quality, and operational efficiency to evaluate the project's commercialization potential.

The industry is focusing on used batteries because the number being returned is growing rapidly in line with increasing EV adoption. According to estimates cited by the Ministry of Trade, Industry and Energy from the Korea Environment Institute (KEI) and the Ministry of Environment, the volume of used batteries disposed of domestically increased from 2,355 in 2023 to 8,321 in 2025. Projections indicate it will reach 78,981 in 2029 and 107,500 in 2030.

There are two main ways to handle used batteries: reuse and recycling. If the battery retains sufficient capacity, it can be repurposed for applications such as ESS, even if it no longer meets the performance standards required for vehicles. Batteries unsuitable for reuse are disassembled to recover core minerals like lithium, nickel, and cobalt, which are then reused as battery materials.

Samsung SDI is also expanding its closed-loop recycling system, which recovers critical minerals from used batteries and manufacturing scrap and then reintroduces them into the battery manufacturing process. Its in-house Recycling Research Lab is working on technologies to improve mineral recovery rates. Samsung SDI has participated in research and demonstration projects related to used battery reuse and is evaluating the technical requirements and business feasibility based on these projects.

SK On previously installed a 300 kWh-class ESS in 2022, utilizing six used batteries from the Kia Niro EV. The company has verified the feasibility of battery reuse by demonstrating this ESS at an SK Ecoplant apartment construction site in Anyang, Gyeonggi Province.

The government is also shifting its policies to manage used batteries as strategic resources rather than waste. The Used Battery Act passed the National Assembly's plenary session in April and was promulgated on May 26, 2026. With few exceptions, most provisions will go into effect from May 27, 2027. The law includes guidelines for performance assessment, safety inspections, lifecycle traceability and transaction systems for batteries, and the promotion of recycled materials usage. The Ministry of Trade, Industry and Energy and the Ministry of Climate and Environment agreed in August to cooperate on establishing a platform for used battery transactions and traceability, and to link it with a recycled materials certification program.

As EV adoption grows and regulations regarding recycled materials are established, the battery industry's business scope is expanding beyond production itself. Batteries can be re-employed in ESS and, after their service life ends, have their core minerals recovered and converted back into raw materials for new batteries. If this circular economy model is established, it will help secure raw materials and reduce waste at the same time.

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