Hyundai Glovis to nurture recycled EV battery business into main growth engine

By Park Sae-jin Posted : January 23, 2024, 16:59 Updated : January 23, 2024, 16:59
Courtesy of Hyundai Glovis
[Courtesy of Hyundai Glovis]

SEOUL -- In a strategic move to foster the recycled electric vehicle (EV) battery business as the primary driver of growth, Hyundai Glovis, the logistics solution arm of South Korea's Hyundai auto group, has entered into a share subscription agreement with a domestic battery recycling company.

A Share Subscription Agreement (SSA) is a legal document that delineates the terms and conditions under which a party agrees to subscribe for and purchase newly issued shares in a company. Typically used in capital-raising or equity financing, this agreement is instrumental when a company aims to issue new shares to investors or existing shareholders.

Anticipating a significant surge in the growth rate of discarded high-performance batteries in the global market, particularly as cells extracted from first-generation EVs are set to enter the market between 2024 and 2025, Hyundai Glovis is strategically positioning itself in the evolving landscape. According to global market research firm SNE Research, the global market for discarded EV batteries is expected to reach 600 trillion won ($450.1 billion) by 2050.

Despite not being in their original 100 percent state, recycled EV batteries offer substantial utility, particularly in energy storage systems (ESSs) for renewable energy sources such as wind farms and micro-hydro power plants. This positions them as valuable contributors to sustainable energy solutions.

Hyundai Glovis said that the company signed an SSA with Environment Recycling (ER) to acquire a portfolio that covers the entire process of EV battery recycling. The Hyundai logistics wing will also develop pre-processing techniques to retrieve high-performance batteries through offices located in Europe, North America, and Southeast Asian countries.

"We will establish a full business system through a single-line process that includes the retrieval and pre-processing of discarded batteries," a Hyundai Glovis official said in a statement on January 23.
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