Posted on 13 Oct 2022
South Korean conglomerate GS Group's energy division GS Energy and South Korean steelmaking giant Posco Group's holding firm Posco Holdings established a secondary battery recycling joint venture named Posco GS Eco materials, according to The Korea Times.
The representatives held a signing ceremony on 6 October at Posco Centre in Gangnam, southern Seoul. The two companies agreed to invest about KRW 170 billion ($119.40 million) in total. The JV is expected to be established by the end of this year. Posco Holdings will hold a 51% stake in the JV and GS Energy will own the remaining 49% stake.
The JV will initially focus on extracting key metal minerals such as lithium and nickel from dismantled used secondary batteries. In the future, it is expected to expand the business and cover Battery-as-a-Service (BaaS) platforms in order to potentially include a battery testing, leasing, and swapping businesses, Kallanish learns.
By 2040, Posco plans to invest about KRW 25 trillion in its secondary battery business, aiming to reach KRW 4.3 trillion in earnings before interest, taxes, depreciation, and amortization in 2026 and KRW 11.4 trillion in 2030.
Posco Group's chairman Choi Jeong-woo says: “Starting with Europe, secondary battery recycling will become mandatory from 2030 in many countries. Posco Group and GS Group will cooperate for the stable supply of used batteries, fostering a new industrial ecosystem."
GS Group's chairman Huh Tae-soo says: "I am confident that the capabilities of the two groups will meet the demand for new industrial and social changes in the transformation of the energy sector and create new businesses. Let us try to create future growth not only for GS and Posco but also consumers and the public at large."
Source:Kallanish
