South Korean experts urge legislation to separate EV battery ownership

Experts and lawmakers are calling for legislative changes to allow the separation of electric vehicle (EV) body ownership from battery ownership. During a policy seminar hosted by National Assembly member Son Myung-soo and the Korea Automobile & Mobility Association (KAMA), participants discussed how decoupling these assets could lower the initial purchase cost of EVs, as batteries can account for approximately 40% of total vehicle costs.

Under the proposed framework, consumers could purchase the vehicle chassis while subscribing to or leasing the battery. This model aims to mitigate consumer risks regarding battery degradation and declining resale values. The seminar highlighted seven potential new business models arising from this shift: Battery as a Service (BaaS), battery banks, battery swapping/capacity flexibility, mobile energy, Vehicle-to-Grid (V2G) and Virtual Power Plants (VPP), diagnostics/valuation, and lifecycle circulation.

To facilitate this transition, experts emphasized the need to amend the Automobile Management Act to provide a legal basis for disclosing third-party battery ownership. Additional requirements include establishing clear safety and maintenance responsibilities, updating insurance systems, and setting standards for subsidies and taxation.