SK TES, a subsidiary of South Korea’s SK Ecoplant specializing in semiconductor recycling, has forged a strategic alliance with global automotive giant BMW Group to recycle used batteries. Industry experts see the partnership as a positive development for SK Ecoplant’s long-anticipated IPO.
According to industry sources on January 14, SK TES has entered a long-term partnership with BMW Group, aiming to revolutionize the recycling of end-of-life batteries. Under the agreement, BMW Group will provide SK TES with spent batteries that are no longer functional. SK TES will process these batteries into high-quality materials, recovering valuable elements like nickel, lithium, and cobalt through advanced mechanical crushing and hydrometallurgical refining techniques.
The cornerstone of this partnership lies in utilizing the extracted materials—such as cobalt, nickel, and lithium—for new battery production. Initially focused on operations in Europe, the initiative is expected to expand to North America, including the United States, Canada, and Mexico, as early as 2026.
BMW Group’s move aligns with its broader commitment to strengthening the circular economy. In 2022, the automaker successfully launched a closed-loop recycling system for high-voltage battery materials in China through its joint venture, BMW Brilliance Automotive (BBA).
“This kind of partnership enhances efficiency in terms of circular economy practices,” said Jörg Reuterbauer, Vice President of Circular Economy for High-Voltage Batteries and Electric Powertrains at BMW Group. “All partners stand to benefit from shared experiences and mutual gains.”
IPO Momentum for SK Ecoplant
The SK TES-BMW partnership is expected to bolster SK Ecoplant’s IPO ambitions. The company, which has been pursuing a public listing since 2020, is expanding its focus from green energy and environmental projects to semiconductor solutions.
SK Ecoplant acquired Singapore-based TES, a leading recycling firm specializing in e-waste and end-of-life batteries, for $1 billion in 2022. Following the acquisition, the company rebranded the subsidiary as SK TES in 2023.
This acquisition is part of a broader strategy that includes the integration of Essencore, a semiconductor module company, and SK Materials Airplus (now SK Airplus), an industrial gas producer, into its portfolio. By leveraging synergies from these subsidiaries, SK Ecoplant aims to accelerate its growth trajectory and complete its IPO plans.
Expanding Presence in the U.S.
SK TES has also been scaling its footprint in the United States. Last year, the company began operating a massive IT Asset Disposition (ITAD) facility spanning approximately 130,000 square feet in Fredericksburg, Virginia.
ITAD services provided by SK TES cover a wide range of IT assets, from smartphones and laptops to data center servers. The process involves secure destruction of stored data, followed by recycling and repurposing the devices to minimize waste and environmental impact.
As the demand for sustainable solutions grows globally, SK TES’s innovative approach and the new partnership with BMW Group position it as a key player in the circular economy. This momentum may serve as a catalyst for SK Ecoplant’s IPO and further expansion into the global market.
