Gwangyang-si Establishes 'Eco-friendly Secondary Battery Recycling Technology Development Demonstration Center'

Securing 2 Billion Won in National Funding for Next Year's Development of Next-Generation Food Industry

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City announced that it has secured 2 billion KRW in national funding for the establishment of an eco-friendly secondary battery recycling technology development and demonstration center, which it has continuously proposed to the Ministry of Trade, Industry and Energy in preparation for the rapidly increasing global demand in the secondary battery recycling market.

This project will be promoted over four years from next year until 2024 with a total budget of 23.3 billion KRW (10 billion KRW national funds, 11.3 billion KRW local funds, 2 billion KRW private investment) at Myeongdang 3 Industrial Complex. The project includes the construction of automated disassembly and separation equipment for EV and ESS used battery packs and modules, establishment of eco-friendly recycling process standards and certification, and a performance evaluation base for recycled materials.

Globally, the market for used batteries is expected to reach 12.2 billion USD (approximately 15 trillion KRW) in the lithium-ion battery recycling market by 2025.

Until now, lithium secondary battery recycling has lacked standardized evaluation and recycling criteria, so companies and research institutes attempting recycling have been using different methods.

Recently, POSCO Chemical is expected to increase the production capacity of its Gwangyang cathode material plant from 30,000 tons annually to 60,000 tons after the completion of phases 3 and 4. Along with this, it is anticipated that the ‘Eco-friendly Recycling Technology Development Demonstration Center’ will contribute to establishing a virtuous cycle ecosystem for lithium secondary battery cathode material production.

Furthermore, in the mid to long term, by attracting global conferences and seminars related to lithium secondary battery recycling, Gwangyang City is expected to emerge as a central region for lithium secondary battery cathode material technology development, demonstration, and eco-friendly recycling technology.

In particular, it is expected that a system integrating reuse and recycling for the first time in Korea will be completed in connection with Naju’s EV and ESS reuse centers.

Considering the market growth potential of lithium secondary batteries and the market share of domestic companies, it is projected that by 2030, 100 companies will be attracted and about 1,000 jobs will be created in the region through the growth of related local industries.

Jung Hyun-bok, Mayor of Gwangyang City, stated, “As the demand for the electric vehicle market is explosively increasing, and secondary battery recycling technology is at a basic stage, we will foster it as a next-generation growth industry opening the future of Gwangyang through the establishment of the ‘Eco-friendly Secondary Battery Recycling Technology Development Demonstration Center.’”

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