Batteries are undergoing a significant transformation, not just technologically but ethically. The European Digital Product Passport (DPP) initiative, with its emphasis on transparency and sustainability, is set to redefine the way we perceive, produce, and utilize batteries. This article explores the roots of the Battery Passport in the EU regulations and its potential to reshape the global battery industry. Discover the origins and the requirements of the Battery Passport, its implications, and the promise it holds for a sustainable future.
What is the European Digital Product Passport?
The European Digital Product Passport (DPP) is a tool proposed by the European Commission to create transparency and unlock circularity in product value chains. Technically, the DPP is a digital record system that enables the transfer of information between parties and shares product information across the entire value chain, including data on raw material extraction, production, recycling, etc.
The tool is designed to provide new business opportunities to economic actors through circular value retention and optimization, help consumers make sustainable choices, and allow authorities to verify compliance with legal obligations.
In order to achieve these goals, Digital Product Passports will be connected through a QR code to unique identifiers, and the trusted data will be accessible so that all parties, including customers, may better understand the products they use and their environmental impact.
The DPP is a key instrument for implementing a global vision of sustainable, more responsible sourcing, and circular product value chains based on data that is standardized, comparable, and auditable.
Why are Digital Product Passports relevant for batteries?
Digital Product Passports are relevant for the battery industry because batteries have been identified as the first product category to comply with Digital Product Passport reporting requirements. With great power comes great responsibility.
According to the EU Battery Regulation Amendment released on July 2023, all electric vehicle batteries and industrial batteries on the EU market with a capacity of over 2 kWh will require a unique Battery Passport to be identified with a QR code.
The responsibility of entering all essential data into the digital record and ensuring its accuracy and currency falls on the party introducing the battery to the market.
Furthermore, an external entity must validate the carbon footprint pertinent to the battery’s manufacturing location and batch, and this information should be readily available online.
The digital Battery Passport will contain a comprehensive set of information that needs to be made available through a QR code, including battery capacity, energy round trip efficiency, expected lifetime in cycles/calendar years, manufacturing history, provenance, sustainability and lifecycle requirements, material and component attributes, and maintenance history.
Traditional versus digital Battery Passport
The concept of a Battery Passport is not entirely new.
A traditional Battery Passport is a physical document that accompanies a battery throughout its life cycle and contains information about the battery’s specifications, performance, and maintenance history. However, it is a document that can be lost or damaged, leading to a loss of important information. And it can also be difficult to update and share with relevant parties.
In contrast, a digital Battery Passport is a digital record system that enables the transfer of information between parties and will ensure that recovery organizations can determine the best course of action for waste batteries based on their chemistry and use history. It can be updated at any time, while new information can be integrated if needed.
Here are some key advantages of digital Battery Passports:
- Enable greater sustainability and circularity in battery value chains.
- Can act as a valuable data source for battery management-related decision-making.
- Will give every battery an identity, acting as a digital twin of the battery to record important information across its entire lifecycle.
- Offer end-users essential information regarding the battery’s source of materials, its chemical composition, production history, and relevant ESG performance and lifecycle standards.
- Are a key instrument for implementing a global vision of a sustainable, responsible, and circular global battery value chain based on data that is standardized, comparable, and auditable.
Germany is pioneering the transition to digital Battery Passports with the Battery Pass project launched in 2022. The Battery Pass is a three-year, government-funded R&D global project including world-class market German leaders like acatech – Germany’s National Academy of Science and Engineering. The project serves as a pilot for the broader Battery Passport outlined by the Battery Regulation Amendment.
What are the challenges and opportunities of the EU battery regulation?
There are several specific challenges and opportunities related to batteries that make Battery Passports particularly important.
Environmental, social, and governance (ESG) impacts
To manage the rapidly growing industry’s ESG impacts, transparency and collective multistakeholder are vitally important. The Battery Passport is a framework to increase transparency across the entire battery value chain and promote a circular economy, establishing a digital twin of the physical battery that conveys information about all applicable sustainability and lifecycle requirements based on a comprehensive definition of a sustainable battery.
Compliance with regulations
The EU Battery Regulation establishes a detailed set of guidelines aimed at safeguarding the environment by minimizing hazardous substances in batteries and enhancing their recycling frequency. Since it was introduced in 2006, it has had a significant impact on the battery industry. As a result, the need for Battery Passports and other forms of battery traceability has become increasingly important.
Circular battery value chain
Battery Passports will serve as a foundational instrument in fostering a circular battery value chain. This will facilitate collaboration among all stakeholders, sharing crucial information to enhance safety, optimize battery utilization, and guarantee efficient recycling.
Sustainable practices
The Battery Passport will incentivize manufacturers to adopt more sustainable practices by requiring them to provide information about the origin of raw materials and the environmental impact of production.
Proper recycling
The Battery Passport will help ensure that used industrial batteries are properly recycled, reducing the environmental impact of disposal.
Cost savings
The Digital Battery Passport can generate cost savings from streamlined purchasing and quality procedures. It can also improve communication across the supply chain, reducing the risk of errors and delays.
Informed decisions
The Battery Passport can provide detailed information on the battery’s composition and the processes used to manufacture it, which can help customers make informed decisions when purchasing batteries and increase transparency in the supply chain.
Digital Battery Passport implementation: timeline and requirements
Battery Passport timeline
The EU Battery Regulation Amendment was adopted by the EU Council in July 2023.
From February 1, 2027, all light means of transport batteries, electric vehicle batteries, and industrial batteries available on the EU market will require a Battery Passport to be made available via a QR code.
By February 1, 2025, the carbon footprint of both manufacturing sites and batches of EV/industrial batteries must be verified by an external organization and published online.
Manufacturers and stakeholders have until 2026 to ensure that they are compliant with the regulations and have the necessary systems and processes in place to issue and manage these Digital Battery Passports.
Battery Passport requirements
The EU Battery Regulation Amendment contains a comprehensive set of information that needs to be made available in the Digital Battery Passport, including:
- Battery Passport unique identifier: A unique code or number identifying the Battery Passport.
- Manufacturer’s name and address: The name and address of the company that manufactured the battery.
- Battery designation: The specific name or model number of the battery.
- Electrochemical system: The chemical composition or type of the battery.
- Battery type: The specific type or category of the battery (i.e., Lithium-ion, Nickel-Metal Hydride).
- Nominal voltage: The standard voltage output of the battery.
- Nominal capacity: The standard capacity or energy storage capability of the battery.
- Weight: The weight of the battery.
- Battery design life: The expected lifespan or operational duration of the battery under normal conditions.
- Battery warranty: Details about the warranty or guarantee provided by the manufacturer.
- Date of manufacture: The date when the battery was produced.
- Battery end-of-life information: Specific details about how the battery should be disposed of or recycled once it reaches the end of its operational life.
- Carbon footprint: Measurement of the total greenhouse gas emissions caused directly and indirectly by the battery.
- Recycled content: Information regarding the materials in the battery that come from recycled sources.
- Ethical sourcing details: Information about the sourcing practices for the materials used in the battery.
- Safety information and certifications: Details about the safety standards the battery adheres to and any certifications it holds.
- Performance metrics and testing results: Data related to the battery’s efficiency, performance under various conditions, and results from any tests conducted.
- Expected degradation: Information about how the battery’s performance might decline over time and under what conditions.
- Intended use: Specific applications or devices for which the battery is designed.
- Reusability and repurposing information: Details about potential second-life applications for the battery.
- Dismantling information: Guidance on how to safely dismantle the battery.
- State of health metrics: Data providing insights into the current performance and health of the battery compared to its original specifications.
How companies can prepare for the Digital Battery Passport revolution
Understand the requirements
Battery manufacturers should familiarize themselves with the EU Battery Regulation and other related laws to understand the requirements for implementing Digital Battery Passports.
Collect data
The necessary data for the Battery Passport must be collected, including information about battery capacity, energy round trip efficiency, expected lifetime in cycles/calendar years, manufacturing history, provenance, sustainability and lifecycle requirements, material and component attributes, and maintenance history.
Use centralized systems
Players in the battery supply chain should use centralized ERP systems and centralized tools that communicate with suppliers to collect data from them.
Verify the battery’s carbon footprint
Manufacturers have to assess their emissions (direct, indirect, or related to the entire supply chain), calculate the carbon footprint, and convert it to CO2 equivalents using appropriate global warming potential (GWP) factors. Carbon footprints must then be validated by third-party certifiers. Stay tuned because we’re working on a game-changing solution for calculating and validating a battery’s carbon footprint.
Ensure accuracy and completeness
It’s vital to ensure that all the required data is entered into the digital record and that the information is correct and up to date.
Incentivize sustainable practices
Suppliers should be incentivized to adopt more sustainable production practices by requiring them to provide information about the origin of raw materials and the environmental impact of production.
Ensure proper recycling
Companies should help ensure that used batteries are properly recycled, reducing the social and environmental risks and impact of disposal.
Increase transparency
Companies should provide detailed information on the battery’s composition and the processes used to manufacture it, which can help customers make informed decisions when purchasing sustainable batteries and increase transparency in the supply chain.
Implement QR codes
Companies should implement QR codes to enable the transfer of information between parties and ensure that recovery organizations can determine the best course of action for waste batteries based on their chemistry and use history.
But which type of QRs is the most suitable for connecting individual batteries with their digital twins?
The role of QR codes and digital links in implementing the Battery Passport
The now ubiquitous QR codes are central to the implementation of the EU Battery Regulation Amendment.
QR codes must be used to provide a direct link to the Digital Battery Passport webpage. They will be connected to a unique identifier, and the data will be accessible so that all parties, including customers, may better understand the products they use and their environmental impact.
The combination of dynamic QR codes and digital links enables brands to deliver different information and content to different users with a single code, making it the ideal solution to comply with the new regulation.
Dynamic digital link QR codes can be easily updated without reprinting them. In addition, our digital link QR code solution allows brands to connect a smart product page in addition to the passport, opening new opportunities for marketing and customer engagement.
Real-life Battery Passport examples
Companies and organizations at the forefront of the Battery Passport revolution are already testing pilot projects and “proofs of concept” to accelerate its implementation. Among them, the Global Battery Alliance passport and the Ford passport are definitely worth taking a closer look at.
Global Battery Alliance
The Global Battery Alliance (GBA) is a partnership of 140+ businesses, governments, academics, industry actors, and international and non-governmental organizations, mobilizing to ensure that battery production supports green energy, safeguards human rights, and promotes health and environmental sustainability. Members of the Global Battery Alliance include Audi, BASF, CATL, Eurasian Resources Group, Glencore, LG Energy Solution, Umicore, Tesla, Volkswagen AG, and many more.
The GBA’s Battery Passport is the flagship initiative of the Alliance, establishing a framework for the circular battery economy. The passport has been developed over three years by the GBA’s members, and its proof of concept was launched at the World Economic Forum’s Annual Meeting in Davos in January 2023.
Ford
Ford Motor Company has launched a Battery Passport pilot to ensure responsible recycling of electric vehicle batteries in the automotive industry. The pilot leverages blockchain technology, IoT, and QR codes to track batteries throughout their lifecycle to ensure responsible management during use and recycling at the end of their useful life.
The pilot will run for six months and will allow Ford to gain visibility on out-of-warranty batteries, validate responsible battery lifecycle management, improve the battery’s sustainability performance, and gain access to data such as recycled critical minerals produced and associated CO2 savings.
Embracing the future of transparency and circularity
The European Digital Product Passport (DPP) initiative marks a pivotal moment in our journey towards a more sustainable and transparent global industry. As batteries power our world, from everyday devices to transformative technologies like electric vehicles, the need for a comprehensive, transparent system like the Battery Passport becomes clear.
The DPP is not merely a regulatory tool but a testament to the European Commission’s commitment to unlocking circularity in product value chains. It offers a digital record that encapsulates a product’s entire lifecycle, from raw material extraction to end-of-life recommendations. This transparency not only enables informed decisions by consumers but also fosters accountability within industries.
By adopting the Battery Passport and the broader DPP system, businesses can tap into new opportunities, optimize value retention, and position themselves as leaders in the green revolution.
For stakeholders and companies keen on navigating this evolving landscape, the recommendations are clear:
- Early adoption: Don’t wait for regulatory mandates. Embrace the DPP and Battery Passport proactively, understanding its nuances and benefits.
- Invest in technology: Utilize technologies like digital link QR codes to provide seamless access to product information, enhancing user experience and trust.
- Engage & educate: Engage with partners in the supply chains, consumers, and stakeholders. Educate them about the benefits of transparent product value chains.
- Foster collaboration: Work together with industry peers, regulatory bodies, and solution providers to ensure seamless implementation and standardization.
As we look towards the future, the DPP and Battery Passport initiatives are not just about compliance; they represent a paradigm shift towards a world where every product has a story, and every stakeholder has a role to play. We at digital-link.com are here to support you in this transformation.
