Hyundai Glovis CEO Lee Kyoo-bok (right) and Zhejiang Huayou Recycling Technology General Manager Bao Wei pose for a photo after signing a memorandum of understanding at Huayou Recycling's headquarters in Zhejiang, China, Thursday. (Hyundai Glovis)

Hyundai Glovis has partnered up with Chinese firm Huayou Cobalt to create an extensive recycling network for electric vehicle batteries, aiming to lead the way in sustainable battery management.

Hyundai Glovis, a Korean logistics and distribution powerhouse, inked a memorandum of understanding with Zhejiang Huayou Recycling Technology, or Huayou Recycling, a subsidiary of cobalt giant Huayou Cobalt. Known for being the world's top producer of cobalt -- a crucial element for EV batteries -- Huayou Cobalt also stands out as the second-largest producer of high-nickel precursors and the third-largest producer of high-nickel anodes.

The agreement, signed last Thursday at Huayou Recycling's headquarters in Zhejiang, China, was attended by Hyundai Glovis CEO Lee Kyoo-bok and Huayou Recycling General Manager Bao Wei. The partnership aims to enhance cooperation in the domestic and international electric storage system market, establish a global recycling system for EV batteries, and optimize supply chain management and logistics for battery manufacturing and recycling.

Hyundai Glovis is looking to boost its competitive edge by tapping into Huayou Recycling's expertise in recycling and reusing end-of-life EV batteries. With over 100 battery collection points across China, Huayou Recycling brings an extensive network that Hyundai Glovis can leverage to devise more efficient battery recovery strategies.

Huayou Recycling possesses advanced technology capable of diagnosing battery capacity life within 15 seconds, alongside various home and industrial ESS products, suggesting substantial future opportunities for reuse initiatives with Hyundai Glovis.

Market research firm SNE Research forecasts that the global used battery recycling market will experience a robust growth rate of 17 percent annually. This burgeoning market is expected to reach $42.4 billion by 2030 and soar to $208.9 billion by 2040, driven by stringent recycling policies from the European Union and increasing global demand for sustainable practices.