Building a sustainable battery economy: an interview with Song kun-ho

As the global transition to clean energy accelerates, batteries have become an essential technology of the net-zero economy. Indeed, the battery industry is rapidly evolving through circular economy initiatives and changing government policies. In this interview, Song kun-ho, a market intelligence professional at LG Energy Solution, discussed the future of the battery industry, the role of policy in shaping market strategy, and how innovation and recycling will contribute to a more sustainable future.

First, could you tell us a little about the work you’re currently doing?

I currently work for a company called LG Energy Solution. Originally, our company sold electric vehicle batteries on a B2B basis, but now we actually manage the entire lifecycle of those batteries. We also provide B2C management services for these electric vehicle batteries, and once their service life ends, we buy them back, recycle them in an environmentally friendly manner, and repurpose them for other uses. My role is in the MI Team, which uses market and market intelligence to help formulate the company’s strategy.

Since batteries are used extensively in electric vehicles, they’re considered a key material for carbon reduction. Aside from electric vehicles, do you see any other areas where battery technology plays an important role in carbon reduction or energy efficiency?

First of all, aside from electric vehicles, there are also other small batteries. As I mentioned earlier, these aren’t just used once and discarded; instead, we collect these used batteries and recycle the usable raw materials back into production. So, their applications are actually quite diverse, and I think they’ll be used even more in the future.

The battery production process itself can also generate energy consumption and carbon emissions. What kinds of efforts do you think are being made to reduce these impacts?

I’m not really from a technical background, so I don’t know the details, but as you mentioned, preparations are certainly underway in this area, and actual progress is being made. In Europe, for example, there’s a policy called the “Battery Passport,” which places a strong emphasis on tracking how much carbon was emitted during the battery manufacturing process. So, I think I can say that globally, not just battery companies but all companies are definitely preparing for carbon reduction and are already taking action.

Since you mentioned looking at market strategy, what do you think will be the area with the greatest growth potential in the battery industry going forward?

Electric vehicles will likely be the main driver. Actually, during the COVID-19 pandemic last year and the year before, electric vehicle sales were on the rise but then experienced a slight lull—what’s often called a “fade.” But now, the market is gradually picking up again. In the European market, for example, subsidies and regulations are still being provided. And when you look at the big picture, from a carbon reduction perspective, conventional internal combustion engine vehicles are on a downward trend, while electric vehicles are inevitably on an upward trajectory. So even though the electric vehicle industry is said to be facing some challenges these days, it’s definitely a sector that needs to keep moving forward.

Beyond that, batteries are now making inroads into sectors like shipping—not just the cruise ships and small vessels we’re familiar with, but even deep-sea fishing vessels. In fact, I hear that China and Europe are actively pursuing this. Additionally, there’s UAM—which, simply put, refers to drones designed to carry people—and I understand that, aside from our company, three other Korean firms and Hanwha are also preparing to enter this market. I understand they’re currently in the works. So, ultimately, the electric vehicle industry is the main focus, and beyond that, the market will expand into various other applications.

As you mentioned, the battery market is quite global. Even if it’s not specifically environmental policy—though that would be ideal—do you think various policy changes overseas have an impact on market strategy?

Actually, this was a policy-driven industry. Especially in the beginning—in China, for example—it started with the government essentially saying, “Do this; if you can’t, stop selling right now,” so to speak. As a result, the market grew significantly driven by such policies. In China’s case, battery companies used to lag behind South Korea in terms of technology and overall capabilities, but now that the government is actively promoting and supporting the sector, the market has expanded tremendously. In fact, the leading company there is now CATL, which has risen to the top, demonstrating just how crucial government policy is—not only strategically but also in practical terms. The same is true in Europe and the United States; since the market is still in its early stages of development, government policy plays a vital role from a strategic perspective.

When you think of batteries, terms like battery recycling and the circular economy come to mind. Do you think these will eventually play an important role in business strategy compared to the current situation?

To be honest, it’s true that processes for recycling and such haven’t been properly established yet. So, while we’re drawing up a big-picture plan, we’re not yet at the stage where we can make this our main focus. Still, we can’t just abandon this business entirely—it’s something we have to pursue. As far as I know, not just our company but everyone else is preparing for this as well.

What challenges do you think are preventing recycling and the circular economy from being seen as more important at this point?

Actually, it’s not that they aren’t important—they are—but since this is a business we’ve never tried before, the processes aren’t in place yet. That’s the biggest issue. We’re just starting to ask, “Should we really try recycling? Should we try reusing?” and “Will this actually help our business?” It’s still in the very early stages. Saying it’s not important doesn’t mean it isn’t; we know we have to do it, but we haven’t quite figured out the specific direction yet. We’re trying things out one by one. That’s about where we stand.

Looking ahead, are there any technologies that you think will bring about major changes in the battery industry, or any emerging issues that we’ll need to address?

Actually, from our perspective, Chinese companies—which used to lag behind us—are constantly introducing new technologies to the market. For example, they’re reducing fast-charging times; since charging can be a hassle, they’re working to make battery-swapping stations more common; or they’re increasing energy density to extend driving range. In fact, it’s not just Chinese companies—all battery manufacturers are competitively pursuing these efforts. So, when it comes to battery technology, I think this will continue to be a market where advancements are made and technologies are constantly being replaced.

Finally, how do you think the battery industry in the net-zero era can contribute to carbon reduction or carbon neutrality through further technological advancements?

Overall, I think we can achieve carbon neutrality by recycling as much as possible during both production and disposal. Additionally, developing long-life batteries that can be used for longer periods is another aspect of battery technology advancement, so I believe this market is bound to continue evolving and becoming more widespread.