[The Era of EV Battery Subscriptions and Leases ②] 'Battery Finance,' Will It Become the Missing Link Between EV Adoption and Resource Circulation?

[산업일보]
▶ Continued from the article, '[The Era of EV Battery Subscriptions and Leases ①] Batteries, From Parts to Assets… 7 New Businesses.'

Regarding the separation of EV and battery ownership, companies anticipate that it will serve as a stepping stone for creating new business models and expanding the market, but also point out that challenges such as safety management and performance evaluation systems still need to be addressed.

Kim Joo-young, Head of the BaaS (Battery as a Service) Business Team at LG Energy Solution, evaluated, "It is an important starting point in that the battery itself becomes an independent product, creating a structure that leads to reuse, recycling, and remanufacturing."

At the same time, he pointed out, "Currently, it is insufficient to clearly prove the residual value required for reuse and recycling or to influence the calculation of depreciation rates for used cars. As we are in the early stages where the industry is investing in small volumes based on future potential, the government and companies need to put their heads together to discuss specific value creation measures for full-scale market expansion."

He also stated, "For used (end-of-life) batteries to be safely distributed and recognized for their market value, it will be crucial to establish a system that goes beyond the current traceability management, monitoring battery conditions in real-time from the moment the vehicle is shipped and accumulating data and performance evaluation results. We look forward to the establishment of a legal framework where an independent ecosystem can be formed solely around batteries."

Choi Seong-jin, CEO of Poen—a company that collects and remanufactures batteries from electric vehicles involved in accidents—said, "Separating ownership means that someone other than the user must continuously provide battery maintenance."

Pointing out the problem that Chinese batteries, which are increasingly entering the market due to their price competitiveness, use low-energy-density lithium iron phosphate (LFP) materials making remanufacturing difficult, he expressed his hope: "I hope that Korean batteries, which are advantageous for remanufacturing, will be continuously maintained through the separation of ownership."

To achieve this, he emphasized the need to improve the current legal framework, which operates on a 'one vehicle, one battery' principle. CEO Choi suggested, "In preparation for battery-swapping charging stations emerging as a new business model in the era of commercialized autonomous driving, we must consider exception clauses that allow multiple batteries to be registered to a single vehicle. Additionally, along with the traceability management system, there should be the establishment and supervision of safety regulations for facility operators."

Sun Jin-il, Head of the EV Business Promotion Team at Hyundai Capital, observed that the separation of ownership could serve as an opportunity to significantly lower the burden of purchasing electric vehicles compared to before. He predicted, "Because a used battery market exists, if we can set the residual value based on the battery's long lifespan, we could reduce monthly payments. A reasonable financial product design can be created that lowers the initial purchase burden and charges fees based on usage."

However, he pointed out that for the used battery market to achieve 'economies of scale,' the current supply and demand imbalance must be resolved.

Team Leader Sun stated, "If battery subscriptions and leases become regular products, Hyundai Capital aims to play the role of a feeder in the used battery market, contributing to the link between revitalizing EV adoption and resource recirculation."

▶ Continued in the article, '[The Era of EV Battery Subscriptions and Leases ③].'