The battery passport is coming and the industry won’t be the same.
It will push for more transparency.
Summary
The Battery Passport won’t fix everything, but it changes everything.
Battery Industry Pulse: weekly roundup.
Welcome back to another edition of my newsletter! - Week 31 2025
Starting from February 18, 2027, any light means of transport battery (LMT, such as e-bikes and e-scooters), industrial battery (eg, BESS), or EV battery sold or used in the EU must include a digital record, called a battery passport.
This battery passport will be linked to a QR code placed directly on the battery.
Users will see where the battery was manufactured, the types of materials used, the environmental impact of its production (including carbon emissions), and information about ethical labor practices throughout its supply chain.
The main purpose of this regulation is to improve transparency within the battery industry.
There are significant concerns regarding unethical labor practices, such as child labor in cobalt mines in countries like the Democratic Republic of Congo. High carbon emissions, especially from coal-powered factories in China, have also raised serious environmental concerns.
These passports aim to address these problems by providing transparent information to recyclers, customers, and regulators.
To ensure security and transparency, battery passports must use open data formats. Organizations such as Circularise have highlighted the need for secure but accessible systems that can protect confidential business data while maintaining full transparency.
Understanding the EU Battery Regulation
The EU Battery Regulation specifically covers batteries used in electric vehicles, e-bikes, scooters, and industrial batteries larger than 2 kWh.
This regulation outlines several important dates and requirements for companies:
August 17, 2023: The regulation becomes active.
February 18, 2024: Battery manufacturers must start officially registering their products.
August 18, 2024: Safety and performance standards become mandatory.
February 18, 2025: Companies must start reporting the carbon footprints of EV batteries.
August 18, 2025: Larger companies must demonstrate ethical management of their supply chains.
August 18, 2026: Carbon footprint labels and data-access rules must be finalized.
February 18, 2027: Digital passports become compulsory for entering the European market.
The battery passport has strict information requirements.
Missing data or failing to comply could result in significant fines or bans on battery sales within the EU. It is essential that companies maintain accurate and complete data, which must be accessible for at least ten years after a battery leaves the market.
Battery passports will organize information into three clear categories: public, restricted, and regulatory.
Public data will include the battery type, its carbon footprint, and details about ethical sourcing.
Restricted information will be focused on repair and recycling instructions, useful to service technicians and recycling facilities.
Regulatory data, accessible only to government agencies, will include comprehensive compliance reports and detailed test results.
Lessons Learned from the BATRAW Project
The BATRAW project was an EU-funded pilot program designed to test the practical use of battery passports. The project specifically explored how blockchain technology and QR codes could be used to manage battery passports.
Through the BATRAW project, recycling facilities benefited greatly from having detailed chemical information about batteries.
This information improved their ability to manage safety risks. Companies specializing in second-life batteries, meaning batteries reused in other applications after their original use, gained valuable insights into battery health and remaining lifespan.
However, the BATRAW project also highlighted significant challenges.
Many companies found it difficult to collect all necessary data, especially detailed records about the origin and composition of battery materials.
The importance of third-party verification was also emphasized during the BATRAW project.
Independent audits will become increasingly important in verifying the accuracy of data provided, including ethical sourcing and carbon reporting.
Broader Industry and Policy Impacts
Battery passports provide critical visibility into issues such as child labor practices, high carbon emissions, forced labor, and the protection of indigenous peoples’ rights.
They also highlight design problems that complicate recycling and reuse.
Clear passport data will help buyers and investors assess environmental and ethical practices more accurately.
For example, companies based in China might find compliance particularly challenging.
Some Chinese manufacturers are already part of pilot projects. However, many are concerned about regulatory alignment, national data policies, and intellectual property exposure.
Volvo is one notable example of a company taking early action. In 2024, Volvo launched a battery passport with its EX90 SUV. The passport clearly outlines the origin of raw materials, components, recycled content and the CO2 footprint of the battery.
Companies that act early can help set global standards. They may gain easier access to public contracts. They’re also more likely to build stronger relationships with investors.
Delaying action, however, might result in increased costs and lost opportunities.
Opportunities and Challenges Ahead
Battery passports offer significant opportunities by enhancing supply chain transparency, reducing risks, improving recycling, and enabling better battery design.
Consumers and investors stand to benefit significantly from the clear and accurate information provided by these passports.
There are already several initiatives in the industry.
The Global Battery Alliance (GBA) conducted pilot projects with major companies such as Tesla, Panasonic, CATL, and LG Energy Solution.
These pilots confirmed that battery passports can effectively communicate important environmental and ethical information.
The GBA is the “most important global partnership” for sustainable battery value chains - German Chancellor Olaf Scholz, October 7th 2024, Hamburg Sustainability Conference.
But challenges remain.
Collecting detailed data is still difficult, especially for smaller suppliers who may be reluctant to share sensitive information.
Differences in carbon reporting standards between regions also complicate data collection and verification.
Despite these challenges, the industry is clearly moving toward greater transparency.
Recycling facilities, repair businesses, and second-life battery companies have all reported tangible benefits from early implementations. Clearer guidelines and more robust incentives will further support adoption.
The battery passport is a significant shift in the battery industry.
It highlights critical environmental and ethical challenges and offers companies a clear choice: act early to earn benefits or delay and risk falling behind.
The battery industry has serious issues to fix.
Critics of electric vehicles often highlight child labor in cobalt mining to discredit the entire transition, despite using phones and laptops that rely on the same material.
Battery passports won’t solve everything, but they offer a tool to expose problems and push for accountability.
By tracing materials and enforcing due diligence, they can help make the battery supply chain more transparent and responsible.
Now, let’s look at this week's battery market developments.
Battery Industry Pulse: Weekly Roundup
Components
Battery
CATL scores YoY growth in both revenue, net profit in H1 2025
SK Innovation Announces Merger of SK On and SK Enmove Amid Significant Capital Raising
Lyten secures $200m to expand battery and BESS operations in Europe
Panasonic Energy Q1 profit grows 47% year-on-year on AI boom
China's first pure electric tourist vessel powered by CATL batteries enters service
BESS
Passengers Cars
Charging infrastructure
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