In a recent edition of the Financial Times, Roula Khalaf, the Editor, highlighted the remarkable journey of Poen, a South Korean start-up transforming the landscape of electric vehicle (EV) batteries. The story begins with Hyundai Motor engineer Sungjin Choi, who encountered a troubling sight in a scrapyard in 2017abandoned and corroding EV batteries, laying neglected despite being the most valuable component of an electric vehicle.

Chois discovery was a wake-up call for the industry. He realized that whether these batteries were discarded due to faults or damage from accidents, they represented a significant missed opportunity. At that time, few were considering how these batteries could be repaired, reused, or even remanufactured. Sanguk Lee, from Hyundais new energy division, echoed Chois sentiments, stating, Repair services are taken for granted in the car industry, but in the EV sector, this was not the case back then.

Motivated by their shared vision, Choi and Lee founded Poen, which has impressively landed at the 43rd position in the 2025 FT/Statista High-Growth Companies Asia-Pacific ranking. The timing of their venture was critical; global EV sales were in the hundreds of thousands in 2017, but by last year, they had skyrocketed to over 17 million. This rapid growth presented both challenges and opportunities in the battery sector.

Poen officially launched in 2020 after spending a little over a year in Hyundais start-up incubator. Since its inception, the company has successfully secured $33.7 million in funding from investors in South Korea and beyond, along with government research and development subsidies to bolster its mission of sustainability within the rapidly evolving EV market.

The core of Poens business lies in refurbishing damaged EV batteries for resale. This intricate process involves dismantling used battery packs, meticulously identifying and replacing defective cells, and then reassembling them for sale as pre-owned units. Lee noted, Our remanufactured packs cost about a third of the price of a new battery. In South Korea, these refurbished battery packs are priced between $10,000 and $15,000, offering a cost-effective alternative for consumers.

Currently, Poen focuses primarily on NCM lithium-ion batteries, which contain lithium, nickel, cobalt, and manganese, sourced from major automotive players Hyundai and Kia. Remarkably, the company has found that approximately 80 percent of the battery packs it receives can be reused. Lee elaborated, The remaining 20 percent are repurposed for alternative energy applications or sent for recycling. To date, Poen has sold around 3,000 refurbished battery units, and its testing and diagnostics division caters to some of the largest EV battery manufacturers globally, including Chinas CATL and South Koreas SK On.

Patrick Lee from Hyundais Zero1NE Ventures incubator praised Poen, saying, It can be very hard for start-ups to meet the standardization of big automakers. That, for us, is something Poen does well. Since graduating from Hyundais incubator, Poen has emerged as one of South Koreas most prominent start-ups, boasting a compound annual growth rate (CAGR) of 150 percent from 2020 to 2023, resulting in total revenue reaching $9 million in 2023. The company is ambitiously targeting $100 million in revenue by 2028.

Recently, Poen raised an impressive $28 million in its second round of funding from domestic venture capitalists and institutional investors, including The Industrial Bank of Korea. This influx of capital is enabling Poen to expand its operations internationally. Lee is currently overseeing the construction of new manufacturing facilities in both Germany and the United States. This strategic move aims to diversify Poens market presence beyond South Korea, particularly as domestic EV sales have declined for two consecutive years. To stimulate domestic demand, the South Korean government has pledged $1 billion in support measures, including consumer subsidies and reduced road tolls.

However, the outlook remains challenging, as recent sales data indicates a tough road ahead for both the European and U.S. markets, while Hyundai itself reported a decline in global EV sales last year. The rapid advancements in Chinas EV and battery sectors have also introduced significant competition, leading to sharp price drops that pose a threat to established automakers elsewhere.

Lee remains optimistic, pointing out that automakers are increasingly focused on the circular supply chain, and we can help reduce costs while minimizing hazardous waste. While EV and battery prices are falling, particularly due to competition from China, repairs will always be necessary. He added, I studied mechanical engineering, and I know that there is no machine without some degree of disorder. We target that percentage of battery disorder.

The current EV sales figures are crucial indicators of Poens market potential. In a departure from conventional venture capital approaches, Tae Hong Park of Koreas SV Invest emphasizes the importance of historical context, looking back to 2021. He explained, What is important for Poen is the point at which the EV industry reached critical mass. It typically takes 5 to 10 years for EV batteries to degrade to the point where they need to be remanufactured. We anticipate 2028-2029 as the key years for Poen based on a rapid increase in [EV] sales from 2021 or 2022 onwards.

South Korea is now home to 91 high-growth companies, sharing a commendable second place on the list with Japan. Among these notable companies are Library Company, a global live content business with a staggering CAGR of 404 percent, ranked fourth, and Habit Factory, a fintech financial services provider with a remarkable CAGR of 327 percent, ranked fifth on the list.