Executive Viability Abstract
This feasibility study evaluates the establishment of a state-of-the-art 'Smart' EV Battery Recycling Processing Plant in South Korea. Strategically positioned within the Gwangyang or Pohang battery clusters, the facility leverages AI-driven sorting and hydrometallurgical extraction to support the domestic K-Battery circular economy. With South Korea's massive domestic battery production capacity (LG, Samsung, SK), the plant secures a steady supply of manufacturing scrap and end-of-life (EOL) units, aiming for a 20,000 TPA capacity.
Return on Investment
28.5%
Payback Span
4.2 Years
Net Present Value
$142.8M USD
IRR Index
24.2%
## Market Analysis
South Korea is a global leader in battery manufacturing, yet lacks raw material independence. The circular economy market is forecasted to grow at a CAGR of 18.5% through 2035. Government mandates (K-Battery Strategy) provide subsidies for urban mining and recycling. Demand is driven by the domestic need for Nickel, Lithium, and Cobalt, which currently rely on 90%+ imports.
## Capex Summary
The estimated initial investment is $95.0M USD.
- Land & Infrastructure: $20.0M
- AI-Driven Automated Disassembly Systems: $15.0M
- Hydrometallurgical Refining Line: $40.0M
- Environmental Compliance & Waste Treatment: $12.0M
- Working Capital: $8.0M
## Revenue Model
Revenue is generated via three primary streams:
1. **Material Recovery Sales**: High-purity Lithium Carbonate, Nickel Sulfate, and Cobalt Sulfate sold back to LGES, SK On, and Samsung SDI.
2. **Black Mass Trading**: Exporting intermediate black mass during peak pricing windows.
3. **Tipping Fees**: Collection fees for processing end-of-life EV battery packs from OEMs.
## Financial Projections
Targeting an annual revenue of $55M by Year 3 with an EBITDA margin of 32%. Expansion into Solid State Battery (SSB) recycling is planned for Year 5.