Hyundai Glovis is joining hands with Huayou Cobalt, the world's largest electric vehicle battery raw material producer, to build a value chain for used EV batteries.
Hyundai Glovis announced on the 5th that it signed a 'business agreement to establish a cooperative relationship in the EV battery business' with Zhejiang Huayou Recycling Technology (Huayou Cycle).
Hwayuri Cycle is a 100% subsidiary of Hwayu Cobalt.
Huayou Cobalt is the world's largest producer of cobalt, a raw material for batteries, and has the world's second-largest production capacity for high-nickel precursors and third-largest production capacity for high-nickel cathodes.
At the signing ceremony held at the headquarters of Huayu Cycle in Zhejiang, China on the 1st, officials from both companies, including Lee Kyu-bok, CEO of Hyundai Glovis, and Bao Wei, CEO of Huayu Cycle, attended and promised cooperation.
The two companies collaboratedAccording to the agreement, they agreed to cooperate on the following: △Cooperation for domestic and international ESS projects, △Cooperation to establish a global EV used battery recycling cycle system, and △Cooperation to optimize supply chain management and logistics operations for the entire battery ecosystem, including battery manufacturing raw materials and recycled resources.
To build a post-use battery value chain, collaboration between multiple domestic and foreign companies is necessary.
Hyundai Glovis plans to further strengthen its business competitiveness through Hwayuri Cycle’s recycling and reuse capabilities for used electric vehicle batteries and its know-how in building related networks.
Huayu Licycle is collecting used electric vehicle batteries at over 100 locations in China.
Hyundai Glovis is expected to be able to establish a more efficient battery recycling strategy by sharing know-how in base operation and supply chain management through cooperation with Hwayuri Cycle.
In addition, Hwayuri Cycle has the technology to diagnose the state of health (SOH) of a battery in just 15 seconds and has secured a number of ESS products for home and industrial use, so there seems to be a high possibility of future collaboration with Hyundai Glovis for reuse projects.
A Hyundai Glovis official said, “We expect that the synergy created by the combination of Hyundai Glovis’ logistics competitiveness and Hwayuri Cycle’s used battery recycling and reuse capabilities will allow us to lead the battery resource market.”
Although the electric vehicle market is currently in a chasm, both inside and outside the industry, there are expectations for continued growth in electric vehicle sales in the long term.;
SNE Research forecasted that the global used battery recycling market will grow by an average of 17% annually, reaching USD 42.4 billion in 2030 and USD 208.9 billion (approximately KRW 263 trillion) in 2040, as the European Union strengthens related policies such as mandating the recycling of used batteries.
Accordingly, Hyundai Glovis plans to continue to cooperate with domestic and foreign companies and local governments to strengthen the competitiveness of the used electric vehicle battery recycling business.
Specifically, the company plans to target the battery recycling market by internalizing and expanding related technologies such as establishing a strategic recycling base for used electric vehicle batteries, securing and developing preprocessing technologies, and optimizing the battery-specific logistics supply chain.
In May, we signed an MOU with Jeju Island to 'revitalize the battery industry after the use of electric vehicles.'
Hyundai Glovis plans to collect, recycle and reuse used batteries generated in Jeju Island.
In 2021, we also obtained a patent for a dedicated collection container for collecting used batteries from around the world.
The recycling container is designed to be able to transport batteries in multiple layers at once, and is evaluated to have increased efficiency and safety.
