Kia pushes for 'assetization' of EV batteries... accelerating the establishment of recovery and diagnosis systems

Kia is accelerating preparations for a new business that manages the lifecycle of electric vehicle batteries, transforming them from simple consumables into 'assets.' The plan is to establish a virtuous cycle structure that leads to reuse, remanufacturing, and recycling by precisely diagnosing the condition of recovered batteries.

Establishing a battery recovery system and a virtuous cycle of reuse and recycling

According to a HYUNDAI video, the Kia EV Battery LCM Team is in charge of establishing a battery recovery system, which involves determining how to effectively recover, accurately diagnose, evaluate, and appropriately utilize electric vehicle batteries that have been used one or more times. They play a role in actually creating a virtuous cycle structure where they lower AS (after-sales) costs by repairing or remanufacturing electric vehicles, reusing batteries recovered from vehicles as ESS (energy storage systems), or recycling them to extract raw materials when they can no longer be used.

Currently, since last year, Kia has been conducting a demonstration project using 15 electric buses in collaboration with a specific company. The video explained that they are fully preparing how to establish business plans based on the data secured through this demonstration project. Major business models mentioned include ESS, which installs batteries in buildings or factories, and V2G (Vehicle to Grid) technology, where electric vehicles charge with cheap electricity at night and then send electricity back to the grid when power demand is high during the day.

Securing volume and accurate diagnosis are factors that determine the success or failure of the business

Securing volume and accurate diagnosis were cited as prerequisites for the success of the battery-based new business. The video emphasized the importance of the amount of battery recovery, mentioning that if volume is not secured, it is practically meaningless regardless of how good the subsequent technologies and business models are. Furthermore, how accurately the condition of the recovered batteries is diagnosed is key. An accurate diagnosis of each state—whether the battery can still be used in a car, needs to be reused, needs to be remanufactured or repaired, or needs to be recycled to recover raw materials—determines the classification of the battery, and this classification determines the success or failure of the business.

In this process, Europe's 'Battery Passport' regulation is expected to act as an important link. According to the European regulation to be implemented from February 2027, information regarding what information a battery holds throughout its entire lifecycle, how it was born, and how it ends its life must be recorded, stored, and disclosed as data. The video explained that as such history accumulates, diagnostic accuracy will increase significantly, allowing batteries to be allocated to even more valuable uses. Consequently, it is observed that an era will come where batteries change from consumables to assets.