POSCO Holdings and GS Energy agree to launch a battery recycling joint venture, “POSCO-GS Eco Materials”
POSCO Group CEO Jeong-woo Choi said, “With this cooperation, not only will dead batteries be stably secured but there will be a big synergy effect to build a new industry ecosystem for secondary battery recycling”
GS Holdings Chairman Tae-soo Huh said, “The agreement will help facilitate the energy transformation to meet evolving demands of industry and society, and create new business opportunities”
The two companies will together invest 170 billion won in the joint venture, POSCO-GS Eco Materials with POSCO Holdings holding 51 percent and GS Energy the remaining 49% stake.
POSCO Holdings and GS Energy signed an agreement to establish the secondary battery recycling joint venture, POSCO-GS Eco Materials.
On Oct. 6,POSCO Holdings signed a joint venture agreement with GS Energy to establish a new company, POSCO-GS Eco Materials at the POSCO Center. POSCO Group CEO Jeong-woo Choi, POSCO Holdings Senior Executive Vice President and Head of Green Materials & Energy Business Team Byeong-og Yoo, POSCO Holdings Executive Vice President and Head of LiB Materials Business Kyung-sub Lee, and GS Holdings Chairman Tae-soo Huh, GS Holdings President Soon-ky Hong, GS Energy CEO Yong-soo Huh, and other persons concerned attended the signing.
POSCO Group CEO Jeong-woo Choi said that “Starting in 2030, using secondary battery reusable raw materials will become mandatory in Europe, so it is expected that the secondary battery recycling market will grow further” adding, “I expect that with this cooperation between POSCO and the GS Group, not only will dead batteries be stably secured but there will be a big synergy effect to build a new industry ecosystem for secondary battery recycling.”
GS Holdings Chairman Tae-soo Huh said that “If we gather business ability between the two groups, we can facilitate the energy transformation to meet evolving demands of industry and society, and create new business opportunities. This cooperative business means not only future growth between GS and POSCO but also customer and social value.”
In a top management meeting in Sept. 2021, POSCO Group and GS Group discussed key new business cooperative options such as secondary battery recycling, which bore the first fruit with the establishment of POSCO-GS Eco Materials in which POSCO Holdings and GS Energy invested around KRW 170 billion, and their share ratio is 51%, 49%, respectively.
POSCO Holdings and GS Energy are scheduled to establish the corporation within the year after signing the agreement.
POSCO-GS Eco Materials will not only pursue the secondary battery recycling business by collecting dead batteries and extracting raw materials, but will also expand business to diagnose, evaluate, and reuse secondary batteries like battery-as-a-service (BaaS).