The Act on the Management and Promotion of End-of-Life Batteries (the “End-of-Life Battery Act”), which regulates the collection, storage, distribution and recycling of end-of-life batteries, was promulgated on May 26, 2026 and will take effect on May 27, 2027.

In light of the anticipated increase in end-of-life batteries due to the widespread supply of electric vehicles and Energy Storage Systems (“ESS”), the government coordinated with the relevant ministries and announced, on July 10, 2024, the “Plans to Develop Laws, Institutions, and Infrastructure to Foster the Used Battery Industry” (the “Used Battery Plans”).

Following the announcement of the Used Battery Plans, the relevant bills introduced at the National Assembly were subsequently consolidated into the End-of-Life Battery Act.

Once implemented, the End-of-Life Battery 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. The End-of-Life Battery Act also provides legal grounds for fostering new industries and supporting supply chain stability. Key provisions are as follows.
 

• Scope of Application: The End-of-Life Battery Act defines “end-of-life batteries” as batteries whose use has ended and that fall under either of the following categories: (i) batteries in electric vehicles—namely, traction batteries installed in (a) electric vehicles, hybrid vehicles, or hydrogen electric vehicles, (b) electric-powered construction machinery, and (c) electric-powered agricultural machinery; or (ii) batteries in other ESS—namely, storage batteries installed in products prescribed by the Presidential Decrees for storing energy.
   

• Business Operator Categories and Applicable Regulations: The End-of-Life Battery 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. Further, it differentiates the registration requirements and compliance obligations applicable to each category, thereby partially alleviating overlapping regulations under existing laws while strengthening management responsibilities that take into consideration the nature of each operator’s business.
   

• Establishment of Policy Committee: The End-of-Life Battery Act creates the End-of-Life Battery Policy Committee (the “Committee”) under the Ministry of Economy and Finance. 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 evaluations and safety inspections before removing batteries from such products. Further, sellers of products equipped with remanufactured or reused batteries as designated by the Presidential Decrees must receive a safety inspection prior to distribution, while owners of such products must receive regular safety inspections every three years. Anyone who falsifies or alters performance evaluations and safety inspection results will be subject to criminal penalties, 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 End-of-Life Battery Act introduces (i) a certification system for extracting recycled materials from batteries under the Ministry of Climate, Energy and Environment (the “MCEE”), (ii) a certification system for the use and content ratio of recycled materials in batteries manufactured using such materials listed under the Ministry of Trade, Industry and Resources, 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.
   

• Support for Industry Development and Technological Advancement: The End-of-Life Battery Act establishes a legal ground for (i) developing and operating a public trading platform as well as a history management system for end-of-life batteries to promote the end-of-life battery industry while ensuring its efficient management, and (ii) supporting technology development projects and providing relevant workforce and financial support, including tax incentives, for such projects.
   

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 End-of-Life Battery Act will enable more efficient and integrated management across the entire lifecycle of end-of-life batteries and support the stabilization of supply chains, yielding positive outcomes across the industrial, environmental and safety dimensions. Accordingly, corporations in the related industry should 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, the European Union’s battery regulation trends and the need for coordination with other applicable laws, companies are advised to closely follow the legislative progress and the content of the lower regulations.

[Korean Version]