Starting in February 2027, a groundbreaking regulation will transform the electric vehicle (EV) landscape in the European Union (EU).
All electric vehicles sold in the EU must include a 'battery passport' - a digital record providing comprehensive details about the battery pack's supply chain, sources, and raw materials.
This move, part of a broader initiative to enhance sustainability and ethical practices in battery production, marks a significant shift towards greater transparency and environmental responsibility in the European motoring industry and beyond.
What's a battery passport?
The battery passport is a digital record linked to each vehicle's unique identification number and accessible via a QR code.
The passport will contain up to 90 distinct pieces of information categorized into seven key areas: general battery and manufacturer information, compliance and certifications, battery carbon footprint, supply chain due diligence, materials and composition, circularity and resource efficiency, and performance and durability.
This comprehensive data set will provide unprecedented insight into the environmental impact and ethical implications of battery production, addressing growing concerns about the sourcing of critical raw materials like cobalt, lithium, nickel, and manganese.
These materials, essential for current EV batteries, have significant environmental and societal impacts, particularly in their extraction and processing stages.
Impact on consumers and manufacturers
For consumers, the introduction of the battery passport represents a leap forward in product transparency.
It will empower buyers with detailed information on the sustainability and ethical aspects of their vehicles, influencing purchasing decisions more than ever before.
Car manufacturers, on the other hand, are expected to ensure that this information is readily available and communicated to all stakeholders, including regulators and dealers.
Global implications
The EU's initiative may set a global precedent in the auto industry. With the increasing number of EVs on European roads and the world’s reliance on critical raw materials for battery production, this regulation aims to promote a circular economy approach. It encourages not only responsible sourcing and production but also the recycling and reuse of batteries.
In line with the EU's circular economy action plan and industrial strategy, these new rules will also set ambitious targets for the recycling of batteries.
By 2027, producers are expected to collect 63 per cent of waste from portable batteries, rising to 73 per cent by 2030. For EV batteries, the target is 51 per cent by 2028 and 61 per cent by 2031.