Battery Passports: Unlocking Sustainability In The Digital Age
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<p style="text-align: justify;"><span data-contrast="none">First, we had energy certificates, then carbon labels. Now, we have "Battery Passports" - the latest tool for communicating sustainability credentials.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">In its drive for a sustainable, circular, and digital economy, EU proposals were made in 2019 to replace the EU Battery Directive with the more stringent EU Battery Regulation. Within this proposal is the requirement of a battery passport for all batteries of 2kWh or greater being used for transport or industrial uses. If accepted later in 2023, these battery passports will be mandatory by 2027.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">So, what is a "Battery Passport"?</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">A battery passport is a digital record of that battery's life that is maintained and is accessible via a QR code on the unit itself. Proposals suggest delivering key information, including:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><ul style="text-align: justify;"><li data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props="{"335552541":1,"335559684":-2,"335559685":720,"335559991":360,"469769226":"Symbol","469769242":[8226],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="none">Documentation of the electrochemical properties of the battery</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props="{"335552541":1,"335559684":-2,"335559685":720,"335559991":360,"469769226":"Symbol","469769242":[8226],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1"><span data-contrast="none">Associated environmental and social impacts of the battery</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props="{"335552541":1,"335559684":-2,"335559685":720,"335559991":360,"469769226":"Symbol","469769242":[8226],"469777803":"left","469777804":"","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1"><span data-contrast="none">Record of activity throughout the battery's life, including usage, degradation, and repair</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li></ul><p style="text-align: justify;"><span data-contrast="none"> </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><h2 style="text-align: justify;"><span style="font-size: 14pt;" data-contrast="none">Problems Addressed by Battery Passports</span></h2><p style="text-align: justify;"><strong>Sustainability</strong><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">Significantly, it will bring considerable impact transparency to decision-making. As we transition from combustion engines to electric vehicles, the burden of greenhouse gas impacts moves from the tailpipe to the manufacturing and end-of-life processes of the battery. </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">At the same time, questions about the ethics of batteries have been raised, given the concern over human rights violations associated with rare earth mining. By offering accurate and specific information on the climate impacts, demand can be driven for more sustainable batteries.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><strong>Recycling</strong><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">A major barrier to the end-of-life processing of vehicle parts is the knowledge of the value chain around which materials will be available and when. Transparency over materials can stimulate investment in processing facilities to maximize the value of the battery over its lifespan.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><strong>Circular Economy </strong></p><p style="text-align: justify;"><span data-contrast="none">The EU is keen to overcome the issue of designing for obsolescence and waste. The battery passport can ensure the longevity of the asset, allowing for multiple use phases and new business models to emerge.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><strong>Level Playing Field</strong><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">Finally, it is designed to help unlock a fair marketplace for the battery sector. By requiring product transparency, the opportunity is wide open for innovators or new entrants to build and market better products across the battery value chain.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none"> </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><h2 style="text-align: justify;"><span style="font-size: 14pt;">What challenges lie in its way? </span></h2><p style="text-align: justify;"><strong>Compatibility</strong><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">Developing a standardized format and framework for battery passports compatible across different battery types and manufacturers can be complex.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><strong>Data Collection and Verification</strong><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">The data needed for battery passports includes information from various stages, such as manufacturing, distribution, usage, and recycling. Ensuring the integrity and accuracy of this data is essential for stakeholders to make informed decisions.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><strong>Privacy and Data Security</strong><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">Battery passports contain sensitive information about batteries and their usage. Safeguarding this data and protecting privacy is a critical concern.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><strong>Cost </strong></p><p style="text-align: justify;"><span data-contrast="none">Implementing the battery passport system involves upfront costs for developing the infrastructure, including the necessary digital platforms and data management systems. This burden may disproportionately affect smaller battery manufacturers or companies with limited resources.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-contrast="none">Despite these challenges, if the battery passport is adopted as intended, this initiative will offer a rare opportunity for multi-sector sustainability action that would ripple across the global economy. It can spark a digital passport movement that will influence the decades of climate action ahead of us.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p><p style="text-align: justify;"> </p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/alexander-lewis-jones-22047347/" target="_blank" rel="noopener">Alexander Lewis-Jones</a></em></span><br /> </p><p style="text-align: justify;"> </p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Alexander Lewis-Jones</span></h3><p style="text-align: justify;"> </p><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. How can organizations measure and track the impact and benefits of adopting battery passports in terms of sustainability and operational efficiency?</span></h2><p style="text-align: justify;">The first step for organizations is to begin by creating a benchmark for their metrics on operational efficiency today, ahead of the expected passport rollout in 2027. </p><p style="text-align: justify;">This can be a challenge given that a lack of data transparency is the problem that the passport is trying to resolve. When battery passports are in full circulation, a user may monitor the information as part of the fleet acquisition and fleet management phases, regularly reporting on how key metrics evolve. </p><p style="text-align: justify;"> </p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. What measures are in place to ensure the integrity and accuracy of data collected for battery passports?</span></h2><p style="text-align: justify;">This is a crucial concern for the programme as fraud and data loss represent significant risks to its success. The regulation is designed to avoid this via rigorous accounting methods. </p><p style="text-align: justify;">Firstly, it specifies the party for each passport, keeping the responsibility of the data clear. </p><p style="text-align: justify;">Secondly, it requires establishing a battery-specific methodology specific to this task rather than a broader method that is predominant today. Working together, data risks should be substantially mitigated. </p><p style="text-align: justify;"> </p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. In what ways can battery passports influence consumer demand for more sustainable batteries?</span></h2><p style="text-align: justify;">Europe has an increasingly climate-literate population and an increasingly sustainability-conscious economy, especially among electric vehicle users. </p><p style="text-align: justify;">For example, there is evidence that electric vehicle users are more likely to sign up for a renewable energy tariff because they want their green vehicle to be powered in a green way. By offering a way of finding out which battery is more sustainable, in both environmental and social terms, businesses and individuals can go a step further in reducing their impact. This requires careful consideration over how to communicate the information; it should be made accessible and labeled in context to benchmark data. The EU regulation enforcing this through QR code access is a major step in the right direction. </p><p style="text-align: justify;"> </p><h2 style="text-align: justify;"><span style="font-size: 12pt;">4. How can the digital passport movement support the development of innovative business models and value creation in the battery sector?</span></h2><p style="text-align: justify;">The most exciting areas of innovation for me lie in the opportunities for the circular economy. Today, most batteries are not designed with strong repair and replacement strategies in mind, and recycling business models are limited by the uncertainty of what supply they receive. </p><p style="text-align: justify;">By delivering in-depth knowledge of the type of material entering circulation and how the quality evolves during its lifespan, the battery passport will create significant new demand for recycling and reuse through enhanced sampling and disassembly capabilities. </p><p style="text-align: justify;"> </p><h2 style="text-align: justify;"><span style="font-size: 12pt;">5. In what ways can battery passports facilitate multi-sector collaboration to achieve climate goals and promote sustainable practices?</span></h2><p style="text-align: justify;">The battery passport is unlocking the decarbonization of the battery value chain through new levels of transparency in both carbon footprinting and due diligence procedures. </p><p style="text-align: justify;">To do this, the whole value chain must collaborate on data-sharing. It is a great example of downstream players, such as OEMs, investing in a deep understanding of their supply chain. The Global Battery Alliance is good evidence of this happening across public and private sectors. </p><p style="text-align: justify;"> </p><p style="text-align: justify;"> </p><p style="text-align: justify;"> </p><p style="text-align: justify;"> </p><p style="text-align: justify;"> </p>
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