Revisiting actors’ role in circular economy governance: A case of electric vehicle waste batteries in South Korea

Abstract

An increase in the number of electric vehicle (EV) waste batteries has driven the growth of the waste battery market. In the EV battery industry, South Korea has demonstrated excellent output in battery production but poor output in waste battery reuse and recycling. To determine appropriate waste battery use, primary governance actors should establish their role and lead the early stage of the industrial ecosystem. Herein, we elucidated the appropriate role of each circular governance actor in EV waste batteries using the South Korean case. We used the analytic hierarchy process, a semiquantitative method, and included 37 circular economy experts. For the first class, the firm is the most important actor in the circular governance of waste batteries, with a weight of 0.404, followed by the central (0.375) and local (0.221) governments. For the second class, the reuse industry (0.167) requires more attention than the recycling industry (0.133). Because many countries worldwide interested in the waste battery market have yet to begin the implementation stage, analyzing South Korea’s case can offer practical insights for countries aiming to expand their waste battery market with a clear policy orientation towards carbon neutrality or net-zero emissions and strong policy actor leadership.

Towards to Battery Digital Passport: Reviewing Regulations and Standards for Second-Life Batteries

“…Therefore, in summary, the lack of concrete legislation has three main risks and challenges that affect the sustainability and efficiency of the battery supply chain. Firstly, there is a significant upward trend in the costs of raw materials essential for the production of batteries, highlighting, for example, a 410% increase in the price of lithium in 2022 compared to 2020 [45,46]. This phenomenon calls into question the stability of the battery supply chain, especially considering the limited production capacity of raw materials in certain countries or economic blocks, such as Europe.…”

“…This phenomenon calls into question the stability of the battery supply chain, especially considering the limited production capacity of raw materials in certain countries or economic blocks, such as Europe. This situation highlights the urgent need for a regulatory framework that ensures the continued availability and economic accessibility of these critical inputs [45].…”

“…Additionally, intensifying competition in the sector requires companies to adopt strategies to safeguard their supply chain and battery market share. The absence of clear and comprehensive legal guidelines can result in unbalanced market practices, harming the sector's equitable and sustainable development [45].…”

“…The implementation of specific regulations for the management, recycling and reuse of batteries is crucial to minimize environmental risks and ensure the operational safety of these systems. The development of legislation focused not only on the production and initial use of batteries but also on their extended useful life is imperative to promote a sustainable life cycle for these components essential to the energy transition [45].…”

“…However, unlike other countries or economic regions, such as Europe, which apply producers' responsibility, in South Korea, the Clean Air law states that the government is responsible for recycling or reusing batteries. Experts suggest that the responsibility for second-life batteries and recycling should be attributed to companies, given that the government does not have the capacity to reuse, treat, and recycle waste batteries [45]. Additionally, business models focusing on reuse and recycling must be developed to enable the reuse and recycling of batteries [45].…”