Gyeonggi Province Consults on 'Electric Vehicle Battery Reuse' Regulatory Sandbox Approval

[Suwon Ilbo=Reporter Park No-hoon] A Gyeonggi Province company that faced difficulties entering the market due to the lack of legal regulations on performance and safety for products that decompose and reuse batteries from scrapped electric vehicles into smaller capacities has cleared the regulatory threshold. With the government announcing plans to establish related standards, the waste electric vehicle battery recycling industry is expected to gain momentum.

Gyeonggi Province announced on the 22nd that the used electric vehicle battery reuse business it consulted on received approval for a regulatory sandbox demonstration waiver at the 4th Industry Convergence Regulatory Waiver Committee held by the Ministry of Trade, Industry and Energy on the 19th. The regulatory sandbox demonstration waiver is a system that exempts companies from existing regulations under certain conditions for new products and services, allowing them to test and verify safety.

Goodbye Car Co., Ltd.'s 'Camping Power Bank' is a small-capacity battery used at campgrounds for cooling, heating, and cooking purposes. This product involves decomposing and reusing batteries from scrapped electric vehicles into smaller capacities, enabling distribution at lower prices compared to commercially available batteries.

Current electric vehicles receive government subsidies, so when scrapped, used batteries must be returned to local governments under the Framework Act on Environmental Policy. The issue is that standards for reuse value, performance, and safety of returned batteries have not been established, making recycling difficult.

After applying for a regulatory sandbox demonstration waiver to the Korean Chamber of Commerce and Industry, Goodbye Car requested regulatory sandbox consulting from Gyeonggi Province due to the need for local government consultations on battery use. Accordingly, Gyeonggi Province held meetings with the Korean Chamber of Commerce and Industry, relevant departments including city and provincial fine dust countermeasure divisions, and the Ministry of Trade, Industry and Energy to provide customized consulting for demonstration waiver approval.

With the continued growth of South Korea's electric vehicle market, approximately 80,000 waste batteries are expected to be discharged by 2029. In response, the Ministry of Environment and the Korea National Institute of Standards and Technology plan to establish value assessment standards for used batteries based on their condition and performance, and performance and safety standards for products made with remanufactured batteries. The province plans to actively share information collected during the demonstration period with the government so that demonstration results can be used in establishing formal standards.

Earlier, Gyeonggi Province Governor Lee Jae-myung stated during a meeting with regulatory sandbox-approved companies in September that "we will support companies' innovative industries to the maximum through the regulatory sandbox." The province is currently implementing a project that supports all processes from regulatory sandbox application consulting to post-approval demonstration cost support—the first of its kind by a local government.

Ryu In-kwon, Gyeonggi Province Policy Planning Officer, stated, "We will provide accurate and prompt customized consulting to maximize support for regulatory sandbox approval so that innovative ideas from local businesses can be realized."

Companies wishing to receive consulting related to the regulatory sandbox can contact the Gyeonggi Province Regulatory Reform Office (031-8008-4287) or the Gyeonggi Economic Science Promotion Agency (031-259-6276).