What are battery passports, and why are they important?
Regulators are demanding a more transparent supply chain for batteries, as a route to more sustainable electric vehicle production – but what does this mean for new models?
On 5 June, Volvo began production of the new EX90 luxury electric SUV at its plant in Charleston, South Carolina[1]. It’s a showcase for the carmaker’s most advanced connected and automated features, but it’s also years ahead of new rules that could prove influential across the industry. The EX90 is the first car with a battery passport[2], which could become an important differentiator as the EV market matures.
What is a battery passport?
It’s a digital document designed to encourage a more sustainable, circular, and transparent battery supply chain – not only within automotive, but it is significant for electric vehicles.
Under European Union law, battery passports will become mandatory for all EVs sold from 18 February 2027 [3], providing a wealth of information to different user groups, accessed by scanning a QR code. Although the UK is no longer in the European Union, they are unlikely to be omitted from vehicles sold here.
- The public will be able to see data about the battery’s carbon footprint, amount of recycled content and the critical raw materials used in production.
- For regulators, workshops and recyclers the passport will include test reports, detailed information about cell chemistry and diagrams showing how to safely disassemble the pack.
The EX90s battery passport can be scanned from a QR code on the door frame using the Volvo Cars app, and US and European-market vehicles will have them[2].
Why are battery passports important?
Battery packs are still quite carbon-intensive to manufacture. They account for between 40% and 60% of an electric vehicle’s CO2 emissions during production, according to McKinsey [4], in part because a large share of their raw materials are mined and processed in China and shipped long distances[5].
Although the EU has set targets for recycled cobalt, lithium and nickel content in new EV batteries from 2031[3], recycling rates are still low because that end of the supply chain is still maturing. The battery passport provides more detailed information to consumers and fleets, while enabling easier recycling at the end of its usable life.
How will this influence other markets?
Global regulators are paying more attention to vehicles’ embedded carbon and taking a similar stance to the EU.
- Eligibility for the US Clean Vehicle Credit, a purchase incentive for electric vehicles, requires a minimum share of critical raw materials to be sourced (either new or extracted during recycling) within the United States or a country with which it has a free trade agreement. Those targets increase each year [6].
- The Chinese government is reportedly introducing a battery passport, to align with the EU for trade[7]. More than one in five EVs sold in Europe last year was made in China [8].
The battery passport also complements new durability requirements under the Euro 7 emissions standard, which comes into force on 1 July 2025. Vehicles sold after that date must retain 80% of their battery capacity after five years and 100,000km (62,000 miles) and 72% after eight years and 160,000km (99,400 miles)[9]. It’s an important step as governments, fleets and drivers look towards more sustainable transport.
REFERENCES:
[1] Volvo Cars. (2023). Volvo Cars starts production of fully electric EX90 SUV. [online] Available at: https://www.media.volvocars.com/global/en-gb/media/pressreleases/328909/volvo-cars-starts-production-of-fully-electric-ex90-suv [Accessed 9 Jul. 2024].
[2] Circulor. (2023). World’s first battery passport. [online] Available at: https://www.circulor.com/worlds-first-battery-passport [Accessed 9 Jul. 2024].
[3] European Parliament and Council. (2023). Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries. [online] Available at: https://eur-lex.europa.eu/eli/reg/2023/1542/oj [Accessed 9 Jul. 2024].
[4] McKinsey & Company. (2023). The race to decarbonize electric vehicle batteries. [online] Available at: https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/the-race-to-decarbonize-electric-vehicle-batteries [Accessed 9 Jul. 2024].
[5] The Economist Intelligence Unit. (2023). Complexities of battery supply chain may slow EV adoption. [online] Available at: https://www.eiu.com/n/complexities-of-battery-supply-chain-may-slow-ev-adoption/ [Accessed 9 Jul. 2024].
[6] Federal Register. (2023). Section 30D - New Clean Vehicle Credit. [online] Available at: https://www.federalregister.gov/documents/2023/04/17/2023-06822/section-30d-new-clean-vehicle-credit [Accessed 9 Jul. 2024].
[7] World Economic Forum. (2023). Digital Battery Passport 2023. [online] Available at: https://www3.weforum.org/docs/WEF_Digital_Battery_Passport_2023.pdf [Accessed 9 Jul. 2024].
[8] ACEA. (2024). Fact sheet: EU-China vehicle trade 2024. [online] Available at: https://www.acea.auto/fact/fact-sheet-eu-china-vehicle-trade-2024/ [Accessed 9 Jul. 2024].
[9] Council of the European Union. (2023). Regulation on type-approval of motor vehicles and engines and of systems, components and separate technical units intended for such vehicles, with respect to their emissions and battery durability (Euro 7). [online] Available at: https://data.consilium.europa.eu/doc/document/ST-16960-2023-REV-1/en/pdf [Accessed 9 Jul. 2024].
Important information:
This blog was originally published on leaseplan.com website. The views expressed may no longer be current and any reference to specific vehicles or products is for reference only. This information is not a personal recommendation for any particular vehicle, product or service - if you are unsure about the suitability of a product, you should consult with an expert.
