Hyundai, LG Energy launch used battery storage pilot for EVs

Hyundai Motor Group partnered with LG Energy Solution on Sept. 10 to launch South Korea's first pilot project repurposing retired electric vehicle battery packs into fast-charging energy storage systems.

The five-company initiative tests a 200-kilowatt-hour used battery energy storage system at Wonik PNE's manufacturing plant in Hwaseong. The setup links directly to commercial charging dispensers to evaluate stationary storage performance under real operating conditions.

The storage system draws electricity from the local distribution grid during off-peak night hours when industrial power rates fall. It then discharges the stored energy to electric vehicles through high-speed chargers during midday peak demand periods.

The operational cycle lowers charging station utility costs by reducing exposure to elevated peak tariffs. In addition, the battery buffer reduces instantaneous load spikes on regional power transformers when multiple vehicles plug in simultaneously.

The facility marks South Korea's first operational deployment using battery packs recovered from vehicles built on Hyundai Motor Group's Electric-Global Modular Platform, known as E-GMP. Earlier domestic programs focused on destructive metal shredding rather than pack-level repurposing.

Hyundai Motor and Kia supply the decommissioned battery modules recovered from retired fleet vehicles and warranty replacements. Both automakers lead technical verification of the collection chain and develop operational business frameworks for secondary automotive battery usage.

LG Energy Solution constructed the 200-kilowatt-hour storage enclosure using the supplied E-GMP hardware. The battery manufacturer oversees diagnostic software, operating control algorithms and fire safety systems designed to prevent thermal runaways in aged cell assemblies.

Engineers from LG Energy Solution will track state-of-health degradation across repeated daily charge and discharge sequences. The company uses telemetry collected from the site to establish degradation baselines and assess whether secondary duty cycles affect internal resistance.

Hyundai Engineering leads commercial feasibility modeling for integrating stationary storage units into public charging plazas. The engineering unit evaluates whether recurring electricity tariff savings outweigh the initial capital outlay required for specialized high-voltage switchgear.

Wonik PNE manufactured the charger-integration hardware and hosts the demonstration equipment at its Dongtan factory. The equipment maker monitors daily field performance, focusing on power-conversion stability between the 200-kilowatt-hour battery bank and high-output DC chargers.

Executives from the participating companies signed the partnership agreement at Wonik PNE's Dongtan site on Sept. 10. The group formalized data-sharing protocols covering electrical throughput, thermal readings and cell balance variations across the installation.

Attendees included Hwang Woong-tae, head of EV energy strategy at Hyundai Motor and Kia, and Joo Seung-tak, vice president leading the Energy-as-a-Service unit at LG Energy Solution. Both executives confirmed that operational telemetry will feed into upcoming commercial specifications.

Lee Sang-hoon, asset planning director at Hyundai Engineering, attended the ceremony alongside Kim Chul-ho, executive vice president of development and production at Wonik PNE. The representatives agreed to coordinate hardware revisions based on real-time grid feedback.

Repurposing retired batteries into stationary energy storage addresses a growing disposal backlog as first-generation electric cars reach end-of-life stages. Automotive packs typically retain 70% to 80% of original electrical storage capacity when retired from road duty.

Using intact battery packs avoids the energy-intensive chemical processing required to recover raw battery metals through hydrometallurgical recycling. Reusing structural packs extends the operating lifecycle of active cathode materials before mechanical shredding becomes necessary.

Standardizing storage systems around the E-GMP platform allows engineers to bypass the complex cell sorting that slowed earlier second-life projects. Uniform physical dimensions, coolant lines and internal battery management software lower the engineering costs of secondary assembly.

Fast-charging hubs present a severe strain on urban power grids across East Asia, where utility connections often lack capacity for multi-megawatt spikes. Stationary battery buffers absorb grid demand over long hours, allowing high-power dispensing without expensive substation expansion.

For Hyundai Motor and Kia, establishing a proven second-life channel protects vehicle residual values across commercial fleet clients. Retaining secondary value in retired battery packs lowers lifetime vehicle depreciation and stabilizes balance sheet provisions for warranty returns.

LG Energy Solution is using the Hwaseong installation to expand its Energy-as-a-Service commercial division. The battery maker aims to sell recurring diagnostic monitoring and software management contracts to third-party fleet operators alongside stationary storage equipment.

Wonik PNE seeks to position its power-conversion systems for commercial charging networks across South Korea. Verifying integrated charger-storage equipment in real-world duty cycles allows the equipment vendor to bid on future municipal transit depot projects.

Consortium partners will evaluate system stability and peak-shaving savings across the upcoming winter heating demand cycle before formalizing commercial product offerings. South Korea's Ministry of Trade, Industry and Energy is drafting updated safety standards for repurposed battery storage.

The five participating companies did not disclose the capital expenditure allocated to the Hwaseong pilot project. In addition, the partners have not published a formal completion date for concluding the ongoing field demonstration.