In light of the anticipated increase in end-of-life batteries due to the widespread supply of electric vehicles and energy storage systems (ESS), there has been a growing consensus on the need for a comprehensive, standalone law that governs their collection, storage, and recycling. Therefore, on July 10, 2024, the government coordinated with the relevant ministries and announced the Plans to Develop Laws, Institutions, and Infrastructure to Foster the Used Battery Industry ("Used Battery Plans")(Link).
Following the announcement of the Used Battery Plans, two relevant bills were introduced at the National Assembly. These bills were subsequently consolidated into the Act on the Management and Promotion of End-of-Life Batteries ("End-of-Life Battery Act" or the "Act"), and was passed at the National Assembly plenary session on April 23, 2026. Accordingly, the Act will be promulgated after deliberation and resolution at the Cabinet Meeting, and take effect one year from the date of promulgation. Once implemented, the Act is expected to establish a foundation for systematically managing end-of-life batteries by regulating them as industrial resources rather than merely as wastes and to provide a legal ground for fostering new industries and supporting supply chain stability.
We provide below a summary of the key provisions of the End-of-Life Battery Act and their implications.
|
1.
|
Key Provisions of the End-of-Life Battery Act
-
(Scope of Application) The Act defines "end-of-life batteries" as batteries whose use has ended and that fall under either of the following categories: (1) batteries in electric vehicles - namely, traction batteries installed in (i) electric vehicles, hybrid vehicles, or hydrogen electric vehicles, (ii) electric-powered construction machinery, and (iii) electric-powered agricultural machinery; or (2) batteries in other ESS - namely, storage batteries installed in products prescribed by the Presidential Decrees for storing energy (Article 2 of the Act).
-
(Business Operator Categories and Applicable Regulations) The Act classifies business operators engaging in end-of-life battery-related activities into four categories: (i) distributors, (ii) remanufacturers, (iii) reuse operators, and (iv) recycling operators (Article 2). Further, it differentiates the registration requirements[1] and compliance obligations[2] applicable to each category (Articles 6 through 13), thereby partially alleviating overlapping regulations under existing laws while strengthening management responsibilities that takes into consideration the nature of each operator's business.
-
(Establishment of Policy Committee) The Act creates the End-of-Life Battery Policy Committee ("Committee") under the Ministry of Economy and Finance (Article 5). The Committee will serve as a control tower that oversees the policies concerning end-of-life batteries, including policy coordination, safety management, and enactment/amendment of relevant statutes and regulations, which are currently dispersed across multiple ministries and agencies.
-
(Performance Evaluation and Safety Inspection Obligations) Owners of products stipulated in the Presidential Decrees, such as electric vehicles, must conduct performance evaluation and safety inspection before removing batteries from such products (Article 14). Further, sellers of products equipped with remanufactured or reused batteries as designated by the Presidential Decrees must receive a safety inspection prior to distribution (Article 15), while owners of such products must receive regular safety inspections every three years (Article 16). Anyone who falsifies or alters performance evaluation and safety inspection results will be subject to criminal penalties (Article 30 of the Act), and failure to comply with, or inadequate compliance with, these obligations may result in administrative sanctions.
-
(Certification of Recycled Materials and Recycled Content Targets) The Act introduces (i) a certification system for extracting recycled materials from batteries under the Ministry of Climate, Energy and Environment ("MCEE") (Article 21), (ii) a certification system for the use and content ratio of recycled materials in batteries manufactured using such materials under the Ministry of Trade, Industry and Resources (Article 22), and (iii) a recycled content target system that sets the target content ratios for recycled materials in batteries that are manufactured or imported under the MCEE (Article 23[3]).
-
(Support for Industry Development and Technological Advancement) The Act establishes a legal ground for (i) developing and operating a public trading platform and a history management system for end-of-life batteries to promote end-of-life battery industry while ensuring efficient management (Articles 17 through 20), and (ii) supporting technology development projects and providing relevant workforce and financial support, including tax incentives, for such projects (Articles 26 and 27).
|
|
2.
|
Implications of the End-of-Life Battery Act
With no clear statutory definition of end-of-life batteries under the existing legal framework and regulatory authority fragmented across multiple ministries, the enactment of a single, comprehensive law governing end-of-life batteries is expected to bring significant improvements to the legal and regulatory system. In particular, the Act will enable more efficient and integrated management across the entire lifecycle of end-of-life batteries and support the stabilization of supply chain, yielding positive outcomes across industrial, environmental, and safety dimensions. Accordingly, it is advisable to thoroughly review the new regulatory framework for end-of-life batteries to implement proactive response measures while identifying and securing potential benefits, including technical support and tax incentives, that may become available under the new regime.
Under the End-of-Life Battery Act, key issues on the regulatory framework - registration criteria for distributors and reuse operators, scope of products subject to performance evaluation and safety inspections, target ratios and implementation timelines for the recycled content mandate, and details regarding the establishment and operation of battery-related systems - have been delegated to the lower regulations. Since these key issues are expected to be finalized based on the opinions of the industry and environmental groups, EU battery regulation trends, and the need for coordination with other applicable laws, it is advisable to closely monitor the legislative progress and the content of the lower regulations.
|
[1] Distributors and reuse operators must register pursuant to the End-of-Life Battery Act (Articles 6 and 10), remanufacturers must register pursuant to the Motor Vehicle Management Act, and recycling operators must obtain a permit pursuant to the Wastes Control Act to conduct their respective business operations (Article 2, Items 4 and 6).
[2] Distributors may sell, broker, or arrange the sale of end-of-life batteries only with other distributors, remanufacturers, reuse operators, or recycling operators, except as otherwise provided in the Presidential Decrees (Article 7). Reuse operators must obtain mutual aid or insurance coverage to protect consumers against potential damages (Article 13). Compliance obligations for remanufacturers will be provided in the amended Motor Vehicle Management Act (scheduled to take effect in 2027), while recycling operators are already subject to separate compliance requirements under the current Wastes Control Act.
[3] As a reference, Article 23 of the End-of-Life Battery Act, which establishes the recycled content requirement, will go into effect "on a date as determined by the Presidential Decree within two years from the effective date of this Act" (Addenda). Accordingly, the actual implementation date of this provision will be set under the soon-to-be legislated lower regulations.
[Korean Version]
