The European Commission is trying to develop requirements for participants in the regional electric power battery market that would require them to use a specific percentage of raw materials from recycling by a certain date. South Korean battery manufacturers are convinced that the requirements under the bill are far from realistic and reasonable.
According to Business Korea, the current version of the bill requires battery manufacturers to use at least 12% cobalt, 4% lithium and 4% nickel from 2030 to operate within the EU. From 2035, the figures will be increased to 20% cobalt, 10% lithium and 12% nickel.
LG Energy Solution has a large enterprise in Poland, Samsung SDI and SK On have lithium battery production facilities in Hungary. According to industry representatives, at the current rate of electric vehicle migration, the requirements of European authorities for secondary processing will be difficult to implement. The market will simply not have the required number of traction batteries, and companies would have to recycle part of completely new batteries in order to comply with the law. In this way, the bill would significantly increase the costs of European market participants, as experts summarize.
Fortunately, the initiative ' s sponsors are prepared to consult with Korean and other traction battery manufacturers in order to adjust the bill ' s requirements to more realistic ones. The final drafting of the document will be completed by the beginning of next year, when the bill is scheduled to be tabled in the European Parliament. In the present form, the European authorities ' demands give the Northvolt company, which lags behind Korean competitors in the amount of battery production but is ahead of recycling.