[Asia Exclusive] "Carbon Neutrality Trend & Growing EV Demand in Developing Countries... Increasing Attempts at Battery Reuse"

Used Battery Market Grows Alongside Electric Vehicles
Ministry of Trade Calls for Dedicated 'Battery Division' to Oversee Battery Industry

[Asia Economy Interview = Eunjeong Lee, Head of Industry Department, Summary = Yoonju Hwang, Reporter] The Korea Battery Industry Association has recently been focusing on the battery reuse business. Considering the electric vehicle market in developing countries and the carbon neutrality trend, the battery reuse business is expected to grow into a major industry.

Jung Soon-nam, Vice Chairman of the Korea Battery Industry Association, said, "40% of the association's projects are in the battery reuse sector," adding, "We are working on establishing standards for reused batteries, performance inspections, and safety tests for reused batteries." She explained, "Southeast Asian countries do not have the purchasing power for electric vehicles without subsidies. To enter the electric vehicle market early, strategies to lower prices, such as electric vehicles equipped with reused batteries and small e-mobility, are important."

According to EV Volumes, the global demand for electric vehicle batteries is expected to reach 2740 GWh by 2030. Currently, the main electric vehicle markets are the United States, China, and Europe, but developing countries such as Indonesia and India are also aggressively adopting electric vehicles. The global carbon neutrality trend is also cited as a factor driving the battery reuse market. Europe has effectively banned the sale of new gasoline and diesel vehicles starting in 2035. The United States, since the Biden administration took office, has announced plans to convert more than half of vehicles sold domestically to eco-friendly vehicles by 2030.

Vice Chairman Jung pointed out, "The expected electric vehicle sales volume is estimated at 20 million units in 2025 and 50 million units in 2030," adding, "The current global registered vehicle fleet is 1.6 billion units, and if electric vehicles grow to match internal combustion engine vehicles, the annual battery supply capacity (5 million units) will be insufficient."

The average battery lifespan is 6 to 10 years. As electric vehicle sales increase, battery demand will explode, and large amounts of waste batteries from battery replacements are inevitable. The Battery Industry Association's analysis is that demand cannot be met by new battery production alone.

Vice Chairman Jung emphasized that effective government support is necessary for domestic battery companies to maintain their leadership. The Ministry of Trade, Industry and Energy established the Future Automobile Industry Division last year for hydrogen and electric vehicle policies and created a second vice minister position in the energy sector aligned with the '2050 Carbon Neutrality' plan. However, there is no dedicated department for the battery industry, which is one of the nation's core strategic industries. Jung said, "Currently, the battery industry is handled by the Electronics and Electrical Division," and added, "A dedicated 'Battery Division' should be established."

◆Career of Jung Soon-nam, Full-time Vice Chairman of the Korea Battery Industry Association

△Born in 1961 in Naju, Jeonnam △Bachelor's in Public Administration from Chonnam National University, Master's in Policy Studies from University of Wisconsin, Ph.D. in Business Administration from Chung-Ang University △Passed the 26th Administrative Examination in 1983 and joined the Ministry of Knowledge Economy △July 2011, Vice Governor of Jeonnam Province for Economic Affairs △May 2015, Appointed Full-time Vice Chairman of the Korea City Gas Association △May 2017, Appointed Full-time Vice Chairman of the Korea Battery Industry Association

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