Hyundai Motor, Kia, LG Energy Solution, and SK On Unite for 'Electric Vehicle Battery Service Consortium'

Industry, Land, and Environment Ministries and Private Companies
Electric Vehicle Battery Service Industry Development Meeting
Introduction of 8 Promising Services
Public-Private Joint Consultative Body Launched

On the 18th, at the EC Room of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, Kang Kyung-sung, 1st Vice Minister of the Ministry of Trade, Industry and Energy, Baek Won-guk, 2nd Vice Minister of the Ministry of Land, Infrastructure and Transport, Lim Sang-jun, Vice Minister of the Ministry of Environment, along with related government departments, the Korea Battery Industry Association, the Korea Automobile Mobility Industry Association, Hyundai Motor Company, LG Energy Solution, and other representatives from electric vehicle battery-related associations and companies held the "Public-Private Joint Consultative Body Launch Ceremony" and discussed measures to revitalize the battery service industry.

It is expected that electric vehicle (EV) batteries will be available for use through a leasing model in the future. Financial services that deduct the price of used EV batteries (post-use batteries) in advance are also emerging. Since batteries account for 40% of the cost of an electric vehicle, utilizing such services can significantly reduce the price of EVs.

On the afternoon of the 18th, the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, and the Ministry of Environment held a "Electric Vehicle Battery Service Industry Promotion Meeting" at the Korea Chamber of Commerce and Industry in Seoul, introducing eight promising service models and launching a public-private joint consultative body to foster the EV battery service industry.

The meeting was attended by private sector companies including LG Energy Solution, Hyundai Motor Company, SK On, Kia Motors, PM Grow, Mintec, TVU, KG Mobility, Hyundai Glovis, Hyundai Capital, Poen, VPP Lab, Fitin, EMPS, the Korea Automobile Mobility Industry Association, and the Korea Battery Industry Association.

Electric vehicle battery services refer to various value-added services throughout the battery's lifecycle, from installation in the EV to charging, maintenance and replacement, removal and transportation, remanufacturing, reuse, and recycling. Although the related industry is not yet in full growth, it is gaining attention as a promising future industry alongside the global expansion of EV adoption.

In this regard, the meeting presented eight promising service models directly selected by the industry. These include subscription services and financial services that can reduce the burden of purchasing EVs, performance diagnostic services that help use batteries more safely and for longer periods, and carbon credit trading services and power trading services that generate additional revenue from EV batteries.

The subscription service allows users to lease batteries for EVs and other devices, paying a monthly usage fee. Leased batteries can be replaced as needed. The financial service deducts the future value of used batteries in advance when purchasing an EV, which also reduces the consumer's purchase burden.

A promising business model introduced is the issuance of carbon credits to transportation businesses that have converted from internal combustion engine vehicles to EVs, allowing them to trade credits in the voluntary carbon market.

At the meeting, a "public-private joint consultative body" involving the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, the Ministry of Environment, and industry was officially launched. This joint consultative body will serve as a permanent communication channel to identify and resolve difficulties encountered by the industry during business promotion.

The government and industry plan to promote pilot projects for promising service models such as performance evaluation, common standards for transportation and storage, battery replacement, and mobile charging through the consultative body to revitalize the industry.

Kang Kyung-sung, First Vice Minister of the Ministry of Trade, Industry and Energy, stated, "The battery service industry could become a new growth opportunity for the EV and battery industries, which are currently facing difficulties due to the recent EV chasm (temporary slowdown in demand growth). We will spare no effort to support necessary measures such as promoting collaboration between the automotive and battery industries, focusing on nurturing killer service models, and improving related systems in cooperation with relevant ministries."

As a preliminary event to the meeting, a business forum co-hosted by the Korea Battery Industry Association and the Korea Automobile Mobility Industry Association was held, where companies directly introduced their service business models.

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