South Korean chemicals producer Dansuk Industrial said it was entering the used battery recycling business to tap into the rapid growth of the country’s electric vehicle (EV) market, according to local reports.

The Gyeonggi based company, a producer of biodiesel and chemicals such as polyvinyl chloride (PVC) stabilisers, earlier this month began construction of a lithium-ion battery recycling plant in the Gunsan National Industrial Complex in North Jeolla province.

The new facility is scheduled to be completed in 2024 with an initial capacity to recycle 8,000 tons of batteries per year. The facility will be capable of recovering 5,000 tons of black mass and other battery components.

Dansuk expanded into the biodiesels sector just two decades ago and last year that accounted for around 90% of the company’s KRW1.1trn (US$835m) revenue with PVC stabilisers making up the rest.

The company said it collects 140,000 tons of waste cooking oil from restaurants each year to produce around 340,000 kilolitres of biodiesel.

Dansuk added it plans to launch an initial public offering (IPO) in the second half of this year to fund its expansion into the battery recycling business.