GS Energy CEO Huh Yong-soo, left, GS Group Chairman Huh Tae-soo, second from left, and POSCO Group Chairman Choi Jeong-woo, second from right, pose for a photo after signing an agreement to establish a joint venture at POSCO Center in Gangnam, southern Seoul, Thursday. Courtesy of GS Energy

By Lee Kyung-min

GS Energy, the energy affiliate of GS Group, and POSCO Holdings, the holding firm of POSCO Group, established POSCO GS Eco materials, a joint venture that will advance their secondary battery recycling business, the two firms said Thursday.

The immediate focus of their business portfolio will be on the proper disposal of used batteries. But it will expand further to operate a Battery as a Service (BaaS) platform that lets customers lease and exchange batteries as a separate component from electric vehicles (EVs).

A combined 170 billion won ($121 million) was invested in the joint venture. POSCO Holdings will hold a 51 percent stake and GS Energy 49 percent).

The top executives of the two firms held a signing ceremony at POSCO Center in Gangnam, southern Seoul, Thursday.

In attendance were GS Group Chairman Huh Tae-soo, GS Energy CEO Huh Yong-soo and POSCO Group Chairman Choi Jeong-woo.

GS chairman said the joint venture will generate new growth opportunities.

"I am confident that the capabilities of the two groups will meet the demand for new industrial and social changes in the transformation of the energy sector and create new businesses," he said at the ceremony. "Let us try and create future growth not only for GS and POSCO but also consumers and the public at large."

The POSCO Group chairman said the joint venture will lay the groundwork for the sustainable growth of the rechargeable battery recycling industry in the years to come.

"The rechargeable battery recycling market is expected to grow further, accelerated and underpinned by the mandatory use of recycled secondary battery materials in Europe in 2030," Choi said. "POSCO Group and GS Group will cooperate for the stable supply of used batteries, fostering a new industrial ecosystem."