LFP Hard to Recycle, Industry Insiders Say
Chinese lithium iron phosphate (LFP) batteries will be brought to Korea in large numbers. As electric buses and electric scooters that use LFP batteries have penetrated the Korean market, major automakers are also expanding the volume of Chinese-made LFP batteries for electric vehicles. The problem is that it is virtually impossible to recycle LFP batteries after use, and they become waste. Experts have pointed out that this defeats the purpose of creating an eco-friendly electrical ecosystem.
According to industry sources on Aug. 31, sales of new electric vehicles with LFP batteries in the Korean market will begin in earnest next month. Starting with the Torres EVE from KG Mobility, which announced a plan to establish a battery joint venture in Korea with BYD, Kia’s Ray EV and Hyundai’s Casper Electric (tentative name) will be equipped with CATL-BYD’s LFP batteries. Hyundai Motor Group plans to significantly increase the proportion of Chinese batteries in its entry-level models. In the case of KG Mobility, the company held discussions with major Korean battery companies before its name was changed from SsangYong Motor but failed to reach deals with them. This is because KG Mobility was unable to meet cell unit prices and minimum supply volume demanded by the Korean battery companies. Therefore, it joined hands with BYD to electrify its vehicles.
Renault Korea Motors, which failed to establish partnerships with LG Energy Solution, Samsung SDI, or SK on for similar reasons, is also in talks with a number of battery companies, including Chinese battery makers, with the aim of starting electric vehicle production in 2026. Some trading companies such as GS Global are actively selling Chinese-made electric trucks in Korea. Some local governments in Korea have introduced Chinese-made electric buses as city buses.
Most electric scooters, which have been attracting attention as shared transportation despite safety controversies, are also loaded with LFP batteries. It is inevitable that waste LFP batteries will be discarded after three to four years, starting with those from electric buses with frequent service and long mileage.
The problem is that LFP batteries are underutilized. They are composed of lithium and iron. Waste LFP batteries have less commercial value than waste ternary batteries from which lithium, nickel, cobalt, manganese, and aluminum can be extracted. Since the three major Korean battery companies focus on ternary systems, domestic waste battery technology has also developed around ternary batteries. In China, the waste LFP battery business is expanding, but it is possible to secure a vast amount of waste batteries in China. China is unlikely to import waste LFP batteries from Korea due to logistics costs from China to Korea and it is impossible to export them from Korea as they are classified as waste under current laws.
“Electrification for eco-friendliness may turn into electrification that produces waste,” said an official of a waste battery company. “It is most important to prepare measures to address various problems that will occur after the distribution of LFP batteries. But the Korean government is only focusing on the distribution of electric vehicles, which is raising my concern. Government action is needed such as making battery sellers responsible for disposing of waste batteries or only allowing the import of batteries if they will eventually be recycled.”
“The international community should also propose measures to put the brakes on the proliferation of LFP batteries in line with the objectives of electrification to advance a post-carbon era,” said another battery industry official.