August 2024
Mandatory reporting on SoH
In August 2023, the European Union passed the EU Battery Regulation, requiring businesses across the supply chain to label batteries and track key data in a digital product passport (DPP) beginning February 18, 2027. This EU battery passport is part of a broader effort to standardize battery information across the EU and ensure greater transparency, sustainability and efficiency in the battery market.
The digital battery passport requirement applies to all new electric vehicle batteries, light commercial vehicle batteries and industrial batteries larger than 2 kWh. The documentation must include information such as the battery’s materials, performance, state of charge (SoC) and state of health (SoH) and must be kept up to date for the entire lifecycle of the battery. Users can access the passport via a QR code on the battery itself or its packaging.
Who is affected by the EU battery passport?
The new digital requirements apply to all participants in the battery supply chain and value chain. The EU battery passport is a pilot project for other sectors. That means DPP requirements can be expected for other sectors such as the textile, furniture, electronics and construction industries in the future. Future DPPs are intended to share the format and structure of the battery passport to ensure compatibility, interoperability and transparency.
Author
Dr. Ralph Eberspächer
Partner
4flow consulting
Advantages of the battery passport
Transparency: improves traceability of the supply chain and the state of the battery across the entire life cycle
Resilience: lower dependency on raw materials in the long-term thanks to increased recycling
Standardizes the conditions of competition across the EU
Promotion of sustainable processes and innovation
New insights for battery optimization
The battery passport’s impact on supply chains
The EU battery passport will become mandatory in February 2027 and will have far-reaching implications for the battery supply chain:
1.
Increased transparency and traceability:
Businesses along the value chain will have to record and manage detailed information about the entire life cycle of batteries, from raw material extraction through production and use to recycling.
2.
Adaptation of information systems:
IT systems must be adapted to capture, store and exchange the necessary data for the battery passport. This may require investments in new software and data management solutions. Examples include new reporting structures for data exchange along the supply chain, the specification of data and KPIs compliant with the regulation, and new specifications for IT.
3.
Improved circular economy:
New processes to return and recycle batteries must be developed.
4.
New business models:
Specialized logistics services for battery management, e.g. for second-life applications, could emerge.
5.
Increased complexity:
Managing and transporting batteries become more complex as more information and special handling are required.
6.
Training requirements:
Employees should be trained to comply with new requirements and systems.
7.
Potential for efficiency gains:
Supply chain processes can be optimized thanks to improved data availability.
8.
International cooperation:
Closer cooperation with international partners will be necessary to ensure smooth data exchange.
Start preparing for the EU battery passport now
Businesses should familiarize themselves with the requirements of the EU battery passport now so they have time to make the necessary adjustments and benefit from the opportunities this regulation offers. Although battery passports will not be mandatory until February 2027, some other measures of the EU Battery Regulation will take effect before then.
Since August 2024, all players along the battery value chain must report on the SoH, performance and expected service life of their products. In addition, mandatory safety tests have been in place for stationary batteries since August 2024.
Starting in February 2025, CO2 reporting for EV batteries will be mandatory. This requirement will be expanded to other types of batteries in the following years:
- Industrial batteries without external storage: 2026
- Light means of transport (LMT) batteries, e.g., for e-scooters and e-bikes: 2028
- Industrial batteries with external storage: 2030
Beginning in August 2025, there will be additional requirements for the handling of waste batteries and mandatory take-back and collection systems.
1.
2.
February 2025
Mandatory CO2 reporting for EV batteries
3.
August 2025
Additional requirements for the handling of waste batteries
Key questions businesses need to address now
Businesses should address certain questions now to optimally prepare for battery passport requirements.
- What data is required and what responsibilities apply to us?
- What data is already available?
- Does the existing data meet the requirements laid out by the regulation?
- What data is still missing and how can we obtain it?
- Can our suppliers provide the missing data?
- What new processes and structures need to be established and how can we integrate them into our IT system?
- Can we handle everything in-house, or is external support necessary?
Expert guidance
The EU Battery Regulation creates many advantages, such as a higher rate of recycling, more precise traceability, cross-border standards and greater overall transparency and sustainability. However, it also introduces many additional process requirements. Amid these changes, some standards are not fully defined yet. Businesses must scrutinize their existing internal processes and adapt them where necessary. New KPIs should also be established. Seasoned experts with international and digital expertise and in-depth knowledge of the battery market and its regulations can provide support, from strategy and concept development to final implementation.
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