Proposal for Battery Repair Machine

〜An Environmentally Friendly and Sustainable Business Model 〜

1. Overview of the Battery Repair Machine

■ What is a Battery Repair Machine?

A battery, specifically a lead-acid battery, is commonly found in vehicles and ships. Without this battery, the engine of a car cannot start, and functions such as headlights and air conditioning will not operate. However, batteries are consumable items and are typically said to have a lifespan of about three years.

The battery repair machine is a device designed to restore used and degraded batteries to a condition that is as good as new. This device allows for the reuse of batteries that would otherwise be discarded.

2. Unique Technology of the Battery Repair Machine

■ Efficient Repair Method Using Pulses and AI

The battery repair machine employs specific pulses (electrical signals) during both the charging and discharging processes to remove impurities within the battery and restore its performance. Additionally, by utilizing AI technology to analyze the battery's condition in real-time and automatically adjust the optimal repair process, the machine achieves more efficient and reliable battery repair compared to traditional methods.

■ Shortening Repair Time with Nano-Based Sulfuric Acid Decomposition Solution

The nano-based sulfuric acid decomposition solution is used to quickly and effectively remove impurities and sulfation (lead sulfate crystals) within the battery, thereby shortening the repair time. This special decomposition solution cleans the battery's interior rapidly and efficiently, enhancing the repair process's effectiveness. Consequently, it enables high-quality repair in a shorter time than conventional repair methods.

 

These technologies ensure that the battery repair machine delivers high repair efficiency and reliability, while also contributing to environmental protection.

3. Market demand for Battery Repair Machines

■ Difficulty in Purchasing New Batteries in Developing Countries

In developing countries, economic constraints and inadequate distribution infrastructure often make it difficult to purchase new batteries. Consequently, there is a growing demand to repair and reuse used batteries.

■ 98% Use Lead-Acid Batteries, Resulting in High Demand for Repairs

Globally, 98% of batteries used are lead-acid batteries. These batteries are relatively inexpensive and widely used in many countries. However, they tend to degrade easily, leading to a very high demand for repairs.

4. Advantages of the Battery Repair Machine

■ High Profit Margins

By using the battery repair machine, it is possible to regenerate degraded batteries at a low cost and resell them. This reduces the need to purchase new batteries, thereby ensuring high profit margins.

■ 2-Year Warranty on Repaired Batteries

Providing a 2-year warranty on repaired batteries enhances the reliability of their quality and assures customers of their value. This can lead to increased repeat business and the acquisition of new customers.

■ Environmentally Friendly (Reduction in Battery Disposal, SDG Compliance)

Using the battery repair machine reduces the number of batteries that are discarded and promotes the reuse of resources. This reduces environmental impact and contributes to the Sustainable Development Goals (SDGs). Specifically, it aids in waste reduction and efficient resource utilization, thus protecting the global environment.

5. Reasons Why Battery Repair Services for Used Cars Can Become a Big Business

1. Cost Reduction and Profit Increase 

By introducing battery repair services, your company can significantly reduce the cost of purchasing new batteries. The resale of repaired batteries also becomes possible, securing an additional revenue stream.

 

2. Improvement in Inventory Turnover Rate 

Repairing batteries allows vehicles to be quickly restored to a saleable condition, improving the inventory turnover rate.

 

3. Environmental Protection and Enhanced Corporate Image 

The reuse of discarded batteries contributes to environmental protection and fulfills corporate social responsibility (CSR). This can lead to an improved corporate image.

 

4. Increase in Customer Satisfaction

 Repaired batteries come with a 2-year warranty, providing peace of mind to purchasers. This enhances customer satisfaction and trust, leading to repeat customers and new customer acquisition.

 

5. Building a Sustainable Business Model 

Battery repair services offer a sustainable business model that ensures long-term profitability. Environmentally friendly practices are also advantageous for future regulatory compliance.

 

For these reasons, the introduction of battery repair services presents a significant business opportunity for used car dealerships.

6.Battery Repair, Regeneration, and Reuse for Electric Forklifts

■ Why Lead-Acid Batteries Are Superior to Lithium-Ion Batteries

1. Cost Reduction and Profit Increase

Cost Reduction:

An electric forklift battery costs about 1.4 million yen to replace. By using a battery repair machine, a deteriorated lead-acid battery can be regenerated at a low cost, significantly reducing the cost of purchasing a new battery. This can significantly reduce the operating cost of electric forklifts.

Profit Increase:

Repaired lead-acid batteries can be resold, providing an additional revenue stream. Since lead-acid batteries can be repaired, regenerated, and reused, they become valuable assets.

 

2. Improvement in Inventory Turnover Rate

Rapid Regeneration:

Degraded lead-acid batteries can be quickly repaired and restored to a condition suitable for resale. This enhances the inventory turnover rate and allows for more efficient inventory management.

 

3. Environmental Protection and Enhanced Corporate Image

Circular Economy:

Lead-acid batteries are fully recyclable and do not rely on limited resources like lithium-ion batteries. Recycling lead-acid batteries contributes to environmental protection and fulfills corporate social responsibility (CSR).

Enhanced Corporate Image:

Reusing discarded batteries demonstrates an environmentally friendly approach, which can enhance the corporate image.

 

4. Increase in Customer Satisfaction

Quality Assurance:

Repaired lead-acid batteries come with a 2-year warranty, providing peace of mind to customers. This enhances customer satisfaction and trust, leading to increased repeat business and the acquisition of new customers.

 

5. Building a Sustainable Business Model

Long-Term Profitability:

Battery repair services offer a sustainable business model that ensures long-term profitability. Lead-acid battery technology continues to evolve, making it more cost-effective, durable, and efficient compared to lithium-ion batteries.

Stable Supply Chain:

Most components of lead-acid batteries can be recovered from existing resources, unlike lithium, which may face supply issues. This stability in the supply chain ensures continuous and reliable use.

■ Why Lead-Acid Batteries Are Superior to Lithium-Ion Batteries

1. Compatibility with Existing Forklift Designs

Lead-acid batteries are essential in the design of current electric forklifts, providing the necessary weight to maintain balance. This combination is more efficient than other battery technologies.

 

2. Cost Efficiency

The cost of lithium-ion batteries remains significantly higher, often cited as 4 to 5 times more than that of lead-acid batteries.

 

3. Stable Supply of Resources

Lithium is found only in limited regions, making its supply unstable. In contrast, most components of lead-acid batteries can be recovered from existing resources.

 

4. Safety

Lead-acid batteries have a lower risk of fire and explosion compared to lithium-ion batteries, making them a safer option.

 

5. Technological Advancements

Lead-acid battery technology continues to evolve, with improvements in processing equipment reducing costs. This makes them highly competitive compared to lithium-ion batteries and hydrogen fuel cells

 

(Conclusion)

Introducing battery repair machines not only allows for the low-cost regeneration of lead-acid batteries used in electric forklifts, providing economic benefits, but also contributes to environmental protection. When combined with repair technology, lead-acid batteries become a superior choice over lithium-ion batteries, helping to build a sustainable business model.

7. Achievements of the Battery Repair Machine

■ No Complaints in Initial Sales in South Korea

In South Korea, where the battery repair machine was initially introduced, there have been no complaints to date. This demonstrates the reliability and high performance of the repair machine.

■ High Profit Margins Achieved in Battery Repair for Electric Forklifts and Large Vessels

The repair machine has shown successful results in fields using large batteries, such as electric forklifts and large vessels. These fields achieve higher profit margins compared to automotive lead-acid batteries due to the significant cost savings compared to purchasing new batteries. This highlights the economic advantages.

8. Business Model of the Battery Repair Machine

■ Providing Repair Services and Selling Repair Machines

The business model of the battery repair machine includes two main approaches: selling the repair machine itself and providing repair services. Companies can purchase the repair machine and offer battery repair services in-house.

Pattern A

Offering a service to repair and regenerate depleted lead-acid batteries. With the following setup, it is possible to repair 1,200 batteries per month. This service can be provided with just the space to accommodate 10 repair machines and a household power supply.

Pattern B

This business involves collecting depleted and discarded lead-acid batteries, as well as regenerable scrap batteries, and regenerating them using the above method to sell them at approximately half the price. The profit margins are particularly high in large trucks, large vessels, and forklifts, allowing for significant profit rates.

■ Local Production and Licensing Agreements Possible

As the business expands, it is possible to enter into local production and licensing agreements. This allows local companies to manufacture the repair machines and earn royalty income.

■ Non-Disclosure Agreement (NDA) Required for Agency Contracts

When handling the repair machine as an agent, it is necessary first to conclude a non-disclosure agreement (NDA). This ensures the protection of technical and business-related information.

■ Payment Terms: 50% on Order, 50% Before Shipment

The payment terms for the repair machine are set as 50% of the total amount upon order and the remaining 50% before shipment. This condition ensures the funds necessary for manufacturing and delivery.

■ Sales at Open Prices

The repair machines are sold at open prices. This allows agents to flexibly set prices according to market demand and competitive conditions, increasing the flexibility of their sales strategies.