Advancements in Battery Materials Recovery Technologies in South Korea

Introduction

Recovery of battery materials has become a key requirement in the battery recycling value chain of South Korea as the country’s battery manufacturers have become increasingly dependent on the use of recycled materials in the future production cycles. Unlike in the past where the recycling paradigm largely concentrated on waste management and regulatory compliance, the new cycle in the industry focuses on the efficiency and compatibility requirements within the production processes. This has led to battery material recovery processes such as hydrometallurgical processing and precursor regeneration being given more priority.

The leading battery cell producers in South Korea, such as LG Energy Solution, Samsung SDI, and SK On, are requiring recycling companies to adhere to very specific requirements for the recyclables lithium, nickel, cobalt, and manganese. The above-described developments are already impacting the allocation of capital expenditures for recycling companies. In February 2024, SungEel HiTech announced the increase in its hydromet processing capacity at its Gunsan site in response to local cathode material producers' growing demands for a stable supply of recycled metals.

Conversely, innovation through research is also gaining prominence. Organizations funded by the government, such as the Korea Institute of Industrial Technology, are working with private recyclers to enhance the efficiency of extraction and lower the usage of chemicals. The moves are a clear indicator of South Korea’s approach to securing battery materials without relying on mining supply chains from abroad due to potential disruptions.

Readers seeking market sizing, forecasts, and competitive benchmarking should refer to the South Korea Battery Recycling Market report and its detailed table of contents.

Major Drivers, Trends and Challenges

The alignment between recyclers and battery manufacturers is one of the most significant factors that reshape battery materials recovery technologies. Cell producers now select recovery partners who can provide stable output quality that can be easily reintroduced into precursor or cathode production. This condition gives an advantage to hydrometallurgical processes, which enable the extraction of metals selectively with high purity levels.

Consequently, South Korea has witnessed a rapid investment in wet processing facilities during the last two years. The gradual movement to precursor regeneration and direct recycling methods is another important trend. Instead of dismantling batteries to obtain base metals, some Korean companies are experimenting with methods that maintain the cathode structures, thereby lowering the processing steps and energy consumption. In October 2023, a concerted research effort between Korea Institute of Science and Technology and a mid-sized recycler led to the successful demonstration of direct recycling of nickel, rich cathode material at the pilot scale. Although commercial use is still very limited, such breakthroughs exemplify a long-term transition in recovery technology priority.

Cost optimization has similarly become an important factor. The increase in chemical prices and the cost of the waste treatment have led recyclers to redesign their process flows to reduce the use of reagents and the production of wastewater. Some companies have even gone as far as to proclaim publicly that improving cost efficiency is now as important as increasing recovery rates, especially as competition becomes fiercer and margins tighter. There are still significant challenges despite these breakthroughs.

To scale advanced recovery technologies requires a large upfront capital investment, engineering expertise, and obtaining regulatory approvals. Small recycling operators have limited financial capacity to make facility upgrades which leads to them consolidating. Moreover, feedstock variability continues to be a limitation. Variations in battery chemistries, form factors, and degradation levels make it difficult to have standardized recovery processes, which increases operational complexity. In the future, South Korea's battery materials recovery technologies will be influenced by the combined effect of the regulatory pressure, demands of the manufacturers, and standards of the export market. Recovery efficiency and output quality will be the primary factors that determine the competitiveness of the recyclers. Those companies that will be able to synchronize their technology investments with the specifications of the battery manufacturer and the objectives of the policy will be in the best position to have secured long-term contracts and a stable demand.

Table of Contents

1. Introduction
2. Definition and Scope
3. Battery Materials Recovery Landscape
4. Hydrometallurgical Processing Trends
5. Direct Recycling and Precursor Regeneration
6. Cost and Efficiency Optimization
7. Commercial Scalability Challenges
8. Competitive Environment
9. Outlook and Strategic Opportunities

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