South Korea to establish legal framework for used EV batteries

The South Korean government is moving to establish a legal framework for the used battery industry, aiming to support the development of a circular battery ecosystem. A legislative bill is set to be proposed in April to create systems for battery remanufacturing, reuse, and recycling, alongside comprehensive safety and history management measures.

The proposed law, titled the Act on Supporting the Promotion of the Used Battery Industry and Stabilization of the Supply Chain, will introduce a business registration system, safety standards based on the intended reuse of batteries and an integrated life-cycle tracking system. The government also plans to set clear criteria for evaluating battery conditions using state-of-health (SOH) metrics to determine if a battery can be remanufactured, reused, or recycled.

The bill categorises business entities into distributors and utilisers, each subject to specific regulations and oversight. It also introduces certification for recycled raw materials and requirements for regular safety inspections.

While a similar bill was proposed earlier by the opposition party, the government's version refines the classification of business operators and outlines more detailed safety protocols. With broad agreement across party lines, the legislation is expected to pass swiftly once submitted to the National Assembly.

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Despite being a leading country in battery recycling, second only to China, South Korea has for a long time been focused on reuse of EV batteries. The country's "K Battery Development Strategy" launched in 2021 focused equally on circular steps in the value chain such as leasing of batteries, remanufacturing and repurposing. The government has also established four state-owned reuse and refurbishment centers for EV batteries. The EV adoption is however still lagging other modern markets with an EV share of only 6.1% in 2024, not reaching a full 100,000 vehicles. The previous sales target of 1.6M EVs in 2030 was recently slashed to 1.26M.