Samsung C&T and Sungeel Hitech cancels plans to set up plant in Thuringia, Germany

Sungeel Hitech and Samsung C&T which formed a joint venture to set up a recycling facility in Germany has cancelled its plans to do so. The companies refer to the slowing EV market and local protests as the main reason for its decision.

The €45M plant which was planned to be built in the town of Gera in Eastern Germany was intended to comprise discharging, pre-processing and thermal treatment of 20,000 tpa of production scrap and end-of-life batteries. The location was already the second option for the Korean companies after they had scrapped the plans to build a plant in Rudolstadt, also in Thuringia.

Sungeel Hitech and Samsung C&T remain interested in finding a solution in Germany but has currently not communicated when or where a plant could be built.

Local opposition has previously stopped Sungeel Hitech to open a plant in Poland and, five years ago, also in Endicott, New York. The company had to close one of its pre-processing plant in Hungary after several violations to environmental and health and safety laws. Protests are however not only connected to Sungeel. The Slovenian recycler Andrada was forced to cancel its plans to set up a plant in Alsozcolci in Hungary and Finnish recycler Fortum has met similar opposition in Thuringia as Sungeel, trying to set up a plant in Artern.

As a part of the Critical Raw Materials Act the EU Commission can award recycling projects the status "Strategic Projects" which will help to fast track financing and permitting. However the project will still remain subject to environmental assessments and public consultations requirments and will still need to get public acceptance and demonstrate their engagement with the local population.