As the popularity of electric vehicles increases, demand for battery recycling will grow as well. We spoke with Soo Chul Park, Senior Vice President and EU Managing Director of SungEel HiTech Hungary about the state of battery recycling in Hungary and Europe, emphasising how the industry can operate within current regulations. We highlighted SungEel HiTech’s efforts to reduce carbon emissions through innovative recycling processes and outlined the company’s global expansion and technological advancements over the past 20 years.
Q: Generally speaking, how do you see the Hungarian and broader European market shaping up for battery recycling?
A: For more than 20 years, I have worked in the fields of new and sustainable energy and mobility. I don’t think the circular economy, which includes recycling, batteries and electric vehicles, is a blue ocean. In my opinion, the ecosystem is a methodical approach to completing the tasks due to humanity, and as such, I see the business as one that is being conducted in a regulated manner.
The assignment is therefore obvious. And I take it to mean that the business is being conducted in accordance with the default number that has been set. Passport controls how many batteries are made for electric cars, and it is feasible to anticipate with precision how many will be recycled, how many will be reused and when and how they will be retired. Therefore, I believe that the kind of regulation determines the field, timing, and capacity of the task. Batteries will be used as a medium for all energy sources. Everyone has already agreed that internal combustion engines will no longer be manufactured around 2035 and this is a global consensus. Additionally, from 2031, Europe will enact laws requiring recycled raw materials to be contained for new battery manufacturing.
In this task for humanity, Europe is taking the lead. The largest battery company in Europe is based in Hungary, and the country’s government is aggressively encouraging the recycling industry. Regulated sectors, like other enterprises, grow more gradually and steadily than blue oceans. The goal of this regulated sector is to transform human energy consumption into a resource that can be used indefinitely. Regulation of this sector has already started.
Q: SungEel HiTech’s recycling processes claim to reduce carbon emissions by 40-67 per cent. How do you ensure the efficiency and sustainability of these processes across the operations, especially in light of the increased focus on carbon neutrality?
A: One business that runs mining and refining operations in the city is SungEel HiTech. It does this by gathering batteries that are discarded throughout the city. By comparing SungEel’s production activities to the carbon footprint created by virgin mining and then proceeding to the final raw material through the refining process, the carbon reduction computation is determined.SungEel’s competitive output is the reason it has the most clients among recycling businesses.
Additionally, even if recycling raw materials is not yet required, we have increased sales over the past 20 years since we are competitive in every way when compared to raw materials from virgin mining. Our efforts to enhance its operations have led to this growth and the company’s ongoing, worldwide industrial expansion is a testament to its sustainability. For example, our recycling technology has already reached its 4th generation and we are currently conducting recycling business in 11 countries.
Q: Your company has been a leader in battery recycling technology for over two decades. Could you highlight some recent innovations that are pushing the boundaries in terms of recovery rates or environmental impact reduction? And, speaking of innovations, in your view, how can data and market intelligence help ensure that battery end-of-life decisions, such as second-life applications or recycling, are made more efficiently and sustainably?
A: There are two categories of recycling: the preprocessing of battery waste dismantling into metal powder and the postprocessing process of extracting four major battery elements from the powder. We’ve made numerous improvements over the years.
For example, heat is mostly used in the preprocessing step to eliminate the electrolyte and separator. High heat might be expensive when it comes to lessening the environmental impact, even while it improves recovery rate and purity. Stated differently, the rate of temperature increase is directly proportional to carbon emissions. We recently finished testing a new technique that significantly reduces the temperature while maintaining a good recovery rate. Beginning in 2025, it will be used for the first time in industries throughout Europe.
Secondly, large-scale facilities can benefit from the chemical postprocessing process. Although the method effectively lowers carbon emissions, it also produces a large number of byproducts. In order to supply raw materials for 400,000 electric vehicles a year, we created a method that allows wastes to be filtered throughout the process and applied to our third assembly in Korea.
Q: SungEel HiTech collaborates with major secondary battery manufacturers and automobile OEMs. How do these partnerships influence the development and scaling of your recycling technologies? Are there plans to establish more partnerships in Europe?
A: Yes, we are currently working with almost all LI-ion Battery manufacturer companies in mass production and automobile OEMs. We decide the course of technology development, production and management operations through this collaboration. For instance, the extracted and recycled battery’s raw material is our end product. Every battery manufacturer and automaker has various raw material criteria, which can be interpreted as their respective product expertise. In accordance with these guidelines, we strive to gather scrap, generate Battery Powder and improve extraction efficiency.
Regarding business direction, all OEMs are putting into practice a “closed-loop” strategy to offer as a service rather than just selling batteries, as well as to collect and recycle batteries that have reached the end of their useful lives in compliance with the soon-to-be-implemented requirement in developed nations to use recycled raw materials for batteries. The scalability of SungEel aligns with the trajectory and evolution of battery manufacturers and automakers. The same holds for companies in Europe. Under the CRMA law’s closed loop plan, which will be implemented throughout the EU in 2031, we are extending our collaboration with European auto and battery manufacturers and are presently establishing hubs in each nation.
Q: The concept of a circular economy is integral to your mission. Can you discuss the role of battery recycling in promoting a circular economy and what challenges or opportunities you see in achieving a fully closed-loop system?
A: As I’ve already mentioned, the first goal is to develop national circulation hubs around Europe, which will be crucial to the closed-loop system. Batteries that have contributed to electric vehicles or renewable energy and are recyclable or reusable can be found throughout the European continent, despite the fact that the manufacture of batteries and electric vehicles is restricted to specific regions. In the meantime, these batteries present a risk of explosion or fire, and they can become garbage for the environment if they are not separated and handled appropriately. In order to ensure the most efficient collection, disassembly, inspection and evaluation, transportation and utilisation after shipping, the largest task for establishing a closed-loop system is to gather batteries that are dispersed throughout Europe, set up hub centres in each region and cover the entire continent.
Now that electric vehicles have been on the market for more than five years, recycling plants will be able to secure enough raw materials that need to be reused or recycled after being used in electric vehicles. Previously, the majority of raw materials for recycling companies were processed scraps during battery production. As a further potential, it is anticipated that the price of recycled materials will increase as European federal law requires their use.
Q: How do you navigate the different regulatory frameworks in the EU, where environmental regulations are stringent? What are your views on upcoming regulations affecting battery recycling?
A: The direction of the EU’s additional, changed and strengthened regulations is being explored through participation in several conferences related to batteries and electric vehicles and policy proposals are also being made. SungEel generally welcomes the strengthening of regulations in each country. The reason is that SungEel has made many preemptive investments related to environmental risks and through many trials and errors, has come to the philosophy that this path is to fulfil social responsibility. However, some competitors or new companies in countries with weak regulations often do not invest in environmental facilities or costs, so our company often falls behind in cost competition. Therefore, the strengthening of regulations in the EU makes these efforts fair and increases our company’s competitiveness. In addition, I personally believe that the strengthening of the regulatory system ultimately has many positive effects on the current industry.
Q: The Hungarian plants are recognised for their zero-wastewater generation processes. Could you explain how these waste management practices are implemented and what future improvements or innovations you’re aiming for in this area?
A: Like other manufacturers in Hungary, we do not release our wastewater outdoors. You are referring to the fact that water is not used in the actual production process at our business and that’s right. Our formal production procedure does not use water and we have a clear intention to keep doing so in the future. The rationale is that, in our opinion, this is an environmentally responsible way to use the batteries we acquire to be made to 0V by electric discharge before putting them into the production process. However, some used batteries are occasionally received in a condition that prevents electric discharge. In this instance, we submerge them in water to release them. The water utilised is not a lot and it is carefully handled before being delivered to a wastewater treatment facility for eco-friendly treatment.
Q: Can you elaborate on the socioeconomic impact of your presence in Hungary and the role SungEel HiTech plays in local communities?
A: To the best of my knowledge, our company is the only one in Hungary that genuinely crushes the waste from battery manufacturing facilities and uses batteries in electric cars to create a substance known as battery powder.
The ecology may suffer if we cease our production operations since the waste will not have an easy way to be disposed of. Nonetheless, despite being an environmentally conscious company, it is normal for the neighbourhood where our plant is situated to object to such activities and question why they are allowed in our area. As a result, SungEel’s goal is to become the best standard in Europe for environmentally friendly industrial operations by first fully adhering to environmental regulations, other relevant legislation and common sense.
Furthermore, it is our responsibility to keep the company’s production activities open and transparent to avoid causing discomfort to the local population. As a result, our factory in Hungary runs on the “Open Anytime” model for the benefit of the locals. We invite local citizens to visit the factory every three months to see production operations and they are welcome to visit at any time to witness production activities. Additionally, we prioritise hiring and collaborating with local partners and employees to coexist with the neighbourhood. Not only is it a given that we will create jobs for the local community, but hiring locals also ensures and encourages transparent and ecologically responsible production practices.
Q: With the electric vehicle market growing rapidly, how does SungEel HiTech plan to scale its operations to meet the increasing demand for battery recycling in Europe?
A: To fulfil the increasing demand, we now intend to establish collection centres in every European nation. We will also manufacture battery powder at each regional base and process it in advanced battery nations like Hungary, converting it into raw battery materials for the final battery. Additionally, we anticipate the need for an additional processing facility around 2030 as the legal proportion of recycled raw materials rises.
Q: Looking ahead, how does SungEel HiTech plan to maintain its leadership in the battery recycling industry while continuing to innovate? What‘s the company’s vision for the next decade?
A: The founders’ strong spirit of technological innovation, perseverance in trying again after failing and unrelenting expansion, which daringly ventures into any nation where battery recycling is required, is, in my opinion, the reason SungEel HiTech was able to play an unmatched leading role in the industry. In my opinion, the production expertise derived from cutting-edge technology and the development of a worldwide cooperative framework has already produced competitiveness that other businesses find challenging to match. In my capacity as head of the European headquarters, I envision the European business naturally carrying on the legacy of SungEel’s founders. In terms of the environment, SungEel’s factory will become the best standard in Europe or the finest illustration of environmentally responsible production in Europe.
