Hyundai Motor and Kia to Give Worn-Out Batteries a Second Life as Energy Storage Systems
Hyundai Motor and Kia are turning worn-out electric vehicle batteries into energy storage systems (ESS). The two companies said on the 10th that, together with LG Energy Solution, Hyundai Engineering, and Wonik P&E, they will launch a demonstration project for a total 200kWh "UBESS (Used Battery Energy Storage System)" built from retired battery packs of E-GMP-based EVs. An ESS is a large-scale battery that stores electricity for use when needed. The UBESS will store power during off-peak hours when electricity rates are low and deploy it for EV fast charging during peak hours, with the participating companies planning to verify safety and battery performance through the demonstration.
This comes roughly five years after E-GMP-based EVs first appeared in Korea. Hyundai introduced the Ioniq 5, the first vehicle built on the platform, in 2021, and Kia launched the EV6 the same year. This is the first demonstration in Korea using batteries retired from vehicles built on that platform. Since used batteries are not yet being released in large volumes, the project is intended to validate the technology and business model in advance of market expansion.
Used batteries are not discarded outright once their life in a vehicle ends. Generally, when a battery's performance falls to 70–80 percent of its original level, reduced driving range and degraded charge–discharge performance make it unfit for vehicle use. However, residual capacity may remain sufficient for other applications. Batteries that pass performance assessments and remain in good condition can be reused in ESS or agricultural machinery. Batteries that cannot be reused move on to the recycling stage, where they go through crushing and shredding processes to recover key raw materials such as lithium, nickel, and cobalt.
The government is also putting institutions in place in preparation for the growth of the used battery market. On July 10, 2024, the government announced its "Plan to Build Laws, Institutions, and Infrastructure for Fostering the Used Battery Industry," projecting that the number of used batteries released domestically would exceed 100,000 by 2030. The "Act on the Management and Industrial Promotion of Used Batteries," enacted and promulgated on May 26, will take effect on May 27 next year. Its key provisions cover industry promotion, performance and safety management, and the establishment of a public trading system and battery history tracking system.
The significance of this demonstration lies in validating reuse technology and business models before used batteries begin arriving in bulk. Hyundai Motor and Kia plan to build a safe and efficient system for utilizing retired batteries and go on to develop related business models.
