Batteries Now Regarded as 'Strategic Resources'... Used Battery Act Passes Cabinet Meeting

Introduction of Performance Evaluation, Lifecycle Tracking, and Recycled Material Certification
Full-Scale Launch of the Battery Circular Economy

Yonhap News Agency

A legal framework has been established to manage the rapidly increasing number of used batteries, driven by the widespread adoption of electric vehicles and energy storage systems (ESS), as a national strategic resource. The government aims to systematically manage and utilize used batteries, which were previously treated as mere waste, to simultaneously promote supply chain stability and resource circulation.

The Ministry of Trade, Industry and Energy announced on May 20 that the 'Act on the Management and Promotion of the Used Battery Industry (Used Battery Act)' has been approved by the Cabinet.

This legislation provides an institutional foundation to safely manage the used batteries expected to surge with the expansion of electric vehicles and ESS, while fostering the related industry. The Ministry expects that, through this enactment, the response system to global eco-friendly trade regulations such as the EU Battery Regulation will be further strengthened.

In fact, the number of used batteries generated domestically is projected to increase from 2,355 units in 2023 to 8,321 units in 2025, 78,981 units in 2029, and 107,500 units in 2030.

The core of the bill is the establishment of a safety management system for used batteries. First, batteries will be graded through performance evaluations before removal, and safety inspections will be conducted both before and after distribution for products equipped with used batteries. The objective is to minimize the risk of safety accidents such as fires and enhance market credibility.

A comprehensive lifecycle tracking and transaction system for batteries will also be established. This system will integrate all data from manufacturing, usage, collection, and recycling into a public platform to support transactions. The government expects this to vitalize the market, improve response to trade regulations, and address gaps in oversight.

Systems to expand the use of recycled materials will be introduced as well. The bill includes a target system for recycled material content and a certification system for production and usage. The intention is to promote the recycling of key minerals such as lithium, nickel, and cobalt extracted from waste batteries to enhance supply chain stability.

Additionally, the government will recommend priority purchasing of products equipped with used batteries, and will simultaneously implement industrial promotion policies such as support for supply chain stabilization and technology development.

The Ministry plans to implement the system one year after the law is promulgated. To this end, it will proceed with securing subordinate legislation and budgets through consultations with relevant ministries, experts, and industry stakeholders.

Minister of Trade, Industry and Energy Kim Jeonggwan stated, "This legislation is the result of years of consultation between industry and relevant ministries," adding, "It will lay the foundation for a complete domestic battery resource circulation system and also promote the growth of new industries."

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