[비즈한국] It has been confirmed that IS Dongseo010780 Group, ranked 71st in the Korean business conglomerate standings, has established a secondary battery recycling company in Delaware, USA. While the group’s core business has traditionally been construction, it has recently been expanding into secondary battery recycling. However, with the electric vehicle (EV) market experiencing a "chasm" (a temporary slowdown in demand), the outlook for the secondary battery recycling market is not entirely optimistic.
IS Dongseo's subsidiary, IS Eco Solution, established its U.S. local entity, 'IS Battery Holdings America,' last June. IS Eco Solution is a secondary battery recycler acquired by IS Dongseo in 2022. The company aims to grow into a recycler of all types of secondary batteries, including waste EV batteries, Energy Storage Systems (ESS), Uninterruptible Power Supplies (UPS), consumer batteries, and process scrap. Last year, IS Eco Solution recorded 60.6 billion won in revenue and a net loss of 10.9 billion won.
Historically, most of IS Dongseo Group's revenue has come from the construction sector. Although it has ventured into shipping, waste management, and end-of-life vehicle recycling, these segments remain small compared to its construction business. In fact, the group recently decided to exit the shipping industry via IS Shipping. Excluding construction, its business performance has been lackluster.
Nevertheless, IS Dongseo Group is showing strong commitment to its secondary battery recycling business. From March 5 to 7, the company participated in 'InterBattery 2025' at COEX in Seoul, showcasing its waste battery recycling value chain operations in Korea and Europe. At the time, an IS Dongseo official expressed confidence, stating, "This exhibition will serve as an opportunity for IS Dongseo to explore new growth and breakthroughs through our process innovation technology and networking."
The recent slump in the construction industry also appears to have influenced the group's push into battery recycling. IS Dongseo's revenue fell from 2.0294 trillion won in 2023 to 1.5146 trillion won in 2024, a decline of 25.37%. A 35.74% drop in construction revenue—from 1.2847 trillion won in 2023 to 825.5 billion won in 2024—was a major factor. For IS Dongseo Group, finding new revenue streams to replace construction is essential.
The problem is that the outlook for the secondary battery recycling business is not necessarily bright. Most secondary batteries for recycling come from EVs, meaning EV sales significantly impact the recycling business. However, EV sales in both Korea and the U.S. are not what they used to be. A report by Samil PricewaterhouseCoopers stated, "Global EV sales growth has been slowing, recording 54.4% in 2022, 35.2% in 2023, and 20.8% as of the first half of 2024," adding that "excluding China, global EV sales grew by only 8% in the first half of 2024."
IS Dongseo Group is reportedly considering further investments in battery recycling in Hungary, Slovakia, and Indonesia, in addition to the U.S. However, heavy investment amid the current market chasm could be a burden. Lee Joo-won, a senior researcher at Korea Ratings, analyzed, "There is an inherent burden of continuous investment in the environmental sector (for IS Dongseo). While they are holding off on investments for overseas sites in the short term, there is a possibility of medium- to long-term expansion that requires monitoring."
An IS Dongseo official stated, "We plan to proceed with site acquisition, facility investment, and market entry in phases, at an optimal time to secure profitability, while considering the U.S. Trump administration's EV and recycling policies as well as market conditions," adding, "We will proceed cautiously to ensure our pre-processing business in the U.S. establishes itself stably."
The official added, "Due to the EV market's chasm, the industry for secondary batteries and waste battery recycling has contracted sharply. However, given these difficult conditions, we plan to thoroughly manage risks and prepare to maximize profitability when the market recovers."