Battery Solutions Signs LFP Waste Battery Recycling Contract with BYD... Begins Full-Scale Entry into 20 Trillion Won Market

Battery Solutions, a company specializing in battery recycling, has officially entered the domestic LFP (lithium iron phosphate) waste battery recycling market through cooperation with BYD, the world's number one electric vehicle manufacturer by sales.

Keeps Biopharma (Keeps Pharma) announced on April 21 that its subsidiary Battery Solutions has signed an annual contract with BYD Korea for the recycling of electric vehicle waste batteries. This contract was secured through a competitive bidding process against major domestic companies and is regarded as recognition of Battery Solutions' technological capabilities and business competitiveness.

Until now, the domestic battery recycling market has mainly focused on NCM (nickel, cobalt, manganese) batteries, and the recycling of LFP batteries is a field that has not yet been fully developed. In particular, securing a stable supply of waste batteries has been considered a key challenge for the business, making reliable volume acquisition an important competitive factor.

Through this contract, Battery Solutions will be able to stably secure LFP waste batteries from BYD commercial vehicles, such as electric buses and electric trucks distributed in Korea since 2016, in line with their replacement cycle (about 10 years). In addition, based on its strategic partnership with BYD, the company is now more likely to secure waste batteries from passenger vehicles in the future. In fact, after BYD entered the domestic passenger car market in April last year, it surpassed cumulative sales of 10,000 units within just 11 months, demonstrating rapid growth.

LFP batteries are increasingly replacing conventional NCM batteries due to their safety, long lifespan, and price competitiveness. In particular, the LFP battery is becoming the mainstay in the fast-growing energy storage system (ESS) market, and the demand for related recycling is also expected to increase significantly.

At the same time, as global environmental regulations are tightened, the LFP waste battery recycling market is also rapidly expanding. Industry experts estimate that by 2035, the size of this market will reach approximately 20 trillion won.

Battery Solutions has also secured competitiveness on an institutional basis. In November last year, it was selected as a participant in the government's "Circular Economy Regulatory Sandbox" and is officially collaborating with the Ministry of Environment to establish resource recovery standards. As a result, the company is eligible for regulatory exemptions that allow recycling regardless of waste codes for at least two years.

The infrastructure is already in place. In January last year, the company completed Korea's first LFP waste battery pretreatment facility at its headquarters site in Yeongcheon, North Gyeongsang Province, finalizing preparations for market leadership.

Kim Minhong, CEO of Battery Solutions, stated, "Our proactive investment in facilities and technological capabilities has translated into tangible contracts, proving our competitiveness. We aim to become a leading company in the rapidly growing global LFP recycling market."

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