Categories: Battery
Published 16 May 2024

Amid the surging demand for lithium-ion batteries driven by the ongoing electrification of the transport and energy sectors, the new EU Batteries Regulation took effect in August 2023, aligning with the circularity ambitions of the European Green Deal. This regulation revitalizes the framework for batteries placed on the European market by introducing mandatory requirements that aim to enhance the sustainability, circularity, and safety of batteries.

CaptionDr. Johannes Simböck, Circularity and Sustainability Adviser at acatech – Deutsche Akademie der TechnikwissenschaftenA central aspect of these new measures is the introduction of the battery passport—an innovative digital tool now mandatory for electric vehicle (EV) batteries, waste portable batteries, industrial batteries with a capacity exceeding 2 kWh, and batteries for light means of transport (LMT). These electronic records are designed to improve transparency by providing critical information about the battery model and the individual unit, making essential data accessible to everyone from regulatory bodies to the general public. 

Dr. Johannes Simböck, Circularity and Sustainability Adviser at acatech – Deutsche Akademie der Technikwissenschaften (The German National Academy of Science and Engineering) offers expert insights into how the implementation of battery passports could significantly transform industry standards and consumer behavior, setting new benchmarks for responsible battery usage and end-of-life handling. 

Timelines and Responsibilities 

Regardless of the manufacturing location, if a battery is to be sold in Europe, it must have a battery passport.

"Starting February 18, 2027, the battery passport will be mandatory," Dr. Simböck explains. "Regardless of the manufacturing location, if a battery is to be sold in Europe, it must have a battery passport," he emphasizes.  

Dr. Simböck further notes that the responsibility for issuing and maintaining these passports rests with the economic operators—the manufacturers or importers of the batteries into the European market. This helps develop a level playing field that rewards those who adopt higher sustainability standards and provides reassurance about responsible sourcing through due diligence requirements included in the battery passport. 

Motivations Behind Implementing Battery Passports 

The battery passport will contain over 90 data points, ranging from general information about the battery and the manufacturer to its composition, dismantling manual, and health data from the use phase. By mandating such data sharing, the European Commission aims to promote a sustainable and circular economy-oriented value chain for batteries by implementing the digital battery passport. However, the benefits of these regulations extend beyond this single focus. According to Dr. Simböck, while the battery passport primarily fosters the circular economy, broader battery regulation also addresses resilience and the need to update management practices for batteries to keep pace with rapid innovation since the last regulation in 2005. Additionally, these regulations prioritize sustainability, but the role of digitalization cannot be overlooked. 

Dr. Simböck then outlines the motivations behind implementing battery passports: 

  • Enhanced Transparency: Essential details on each battery's origins, components, and lifecycle, to facilitate informed decision-making by consumers and businesses. 
  • Safety Assurance: Safety-related information is crucial for safe usage and recycling. 
  • Sustainability Promotion: Documenting residual performance, material composition, and recycling capabilities to encourage environmentally responsible practices throughout a battery's lifecycle. 
  • Regulatory Compliance: To ensure that all batteries meet the EU's stringent regulatory standards. 
  • Market Equality: Promoting competition based on sustainability and quality rather than just price and performance. 
  • Facilitation of Digitalization: Interoperable standards for data management and accessibility to improve the efficiency of data exchange across the battery value chain. 
  • Boosting Extended Usage and Safety: Detailed and current information on battery health and history to support second-life usage and safety of batteries. 

Implementation Challenges 

Dr. Simböck believes the battery passport's introduction will mark a new chapter for the industry. However, he also acknowledges that the regulatory faces challenges requiring a collaborative approach. This approach should include technological innovations, regulatory guidance, common standards, stakeholder engagement, and public communication strategies. Only by addressing these challenges can the successful implementation and adoption of battery passports be ensured. 

Dr. Simböck points out the main challenges associated with this initiative: 

  • Data Collection Complexity: It is challenging to collect data from the multitude of companies involved in the various lifecycle stages of batteries. 
  • Reluctance to Share Data: There is a general reluctance regarding data sharing due to confidentiality concerns between battery supply chain actors. 
  • Lack of Awareness: Many are unaware of the need to build transparent battery supply chains and the requirements of the upcoming EU Batteries Regulation. 
  • Unclear Data Access Rights: Currently, there is a lack of clarity on the groups of value chain actors that have access rights to certain types of data, which is yet to be determined by the EU Commission. 
  • Interoperability Standards: Despite ongoing efforts to develop suitable standards, at this moment, there are no established guidelines to ensure the interoperability of data shared among global supply chain actors. 
  • Assessing Data Reliability and Validity: It is difficult to assess the reliability and validity of collected data, such as information on carbon footprints. 
  • Unclear Responsibilities: Responsibilities for meeting the requirements of the battery passport have not been defined yet in the last detail, leaving some ambiguity. 

The Impact on Recycling 

Underscoring the pivotal role battery passports can play in streamlining the recycling process of batteries, Dr. Simböck explains, "The battery passport allows recyclers to handle batteries more efficiently as procedures and composition are available to them. In the long term, aggregated data from battery passports can allow us to anticipate the chemistries of batteries that will return to them in three to five years, simply by analyzing the market trends." 

To promote circularity in the battery industry, policymakers and stakeholders are focusing on enhancing the recycling of raw materials and components after their initial use. Current regulations require that at least 50% of a battery's weight must be recycled. This mandate will increase to 65% by 2026 for lithium-ion batteries, and further to 70% by 2031. Additionally, specific recycling standards will soon be established for the recovery of lithium, cobalt, copper, nickel, and lead from batteries, as well as minimum recycled content quotas of lithium, cobalt, nickel, and lead in batteries. 

Further highlighting the evolving dynamics of the battery recycling sector, driven by technological advancements and regulatory developments, Dr. Simböck points out that recycling processes must meet stringent efficiency criteria set by regulations, such as maintaining 95% of cobalt in the recycling loop, with a loss of only 5%. He clarifies, "While the battery passport reports the specifics of the battery as it currently stands, broader regulations impose additional requirements that directly impact recyclers." 

Simböck also emphasizes the importance of recycling efficiency, which is rigorously outlined in the battery regulations. "Starting in 2028, and increasing further by 2032, regulations will require that batteries contain significant amounts of recycled materials. For instance, by 2032, 50% of the cobalt used in every battery must be recycled," he notes. This stringent requirement aims to enhance the sustainability and efficacy of recycling practices, ensuring that valuable materials are reclaimed and reused efficiently. 

These regulatory measures, as described by Dr. Simböck, reflect a robust strategy to promote responsible recycling practices, thereby supporting a circular economy and reducing the environmental impact of battery production and waste. 

The Battery Pass Consortium 

acatech is a project partner in the Battery Pass Consortium, which includes eleven major industry players such as Audi AG, BMW AG, and BASF SE. Co-funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the project advances the implementation of the battery passport following the EU Battery Regulation and beyond. Led by Systemiq GmbH, the consortium collaborates with a broad network of associated and supporting organizations to draft content and technical standards for a digital battery passport, demonstrate these standards in a pilot application, and assess their potential value.