First-of-its-kind analysis by Battery Pass Consortium reveals benefits and challenges of European Battery Passport

Visual for the publication of the value assessment
© systemiq / Battery Pass

Munich, 11 April 2024

A consortium of eleven leading international industry, technology and science organisations today announces the release of the study “The Value of the EU Battery Passport”, which shed lights on the benefits and challenges of the digital product passport for batteries and underscores their strategic importance for businesses and policy makers alike.

Direct link to the study and executive summary “The Value of the EU Battery Passport“

Titled “The Value of the EU Battery Passport”, the study is published by the Battery Pass project with co-funding from the Federal Ministry for Economic Affairs and Climate Protection (BMWK) and presents the first comprehensive analysis of the qualitative and quantitative benefits as well as challenges of battery passports for businesses along the value chain, policy makers and consumers. It explores in detail where and how economic, environmental and social value can be generated by the adoption of battery passports, which are required by the EU Battery Regulation in a bid to increase transparency, circularity and sustainability in the battery value chain.

The study also describes the challenges that companies might face now or in the future, depending on their type and size. The aim of the study is to paint a more realistic picture of the value creation of Digital Product Passports (DPP) for batteries and promote strategic engagement of the battery passport by individual stakeholders.

Battery passports offer a strategic opportunity for businesses to generate value, foster digital and green markets and introduce sustainable business models. Among others, the study suggests that battery passports could reduce future procurement costs (including technical testing costs) for independent operators by ~2-10% and reduce costs for pre-processing and treatment for recyclers by 10-20% due to reduced sampling needs. In addition, recycling rates could be improved by 1-2% and ~370 to 1,300 kt of CO2 could be saved annually in the EU through the extended service life of batteries*.

Policy makers play a pivotal role in realising the benefits of battery passports by creating and enabling efficient regulatory conditions. These minimise costs for affected companies and provide support to small and medium size enterprises. The study finds that incorporating battery passports in vehicle de-registration and export procedures could potentially unlock around 5-20% of active material for electric vehicle batteries forecast for 2045 in Europe.

Consumers stand to benefit from the Battery Passports by being empowered to make informed decisions when purchasing or selling batteries, provided effective communication strategies are implemented.

Statement by Stefan Wenzel, Parliamentary State Secretary in the BMWK

“The German government is supporting electric mobility and the ambition to create a competitive, sustainable battery production in Europe. More transparent battery value chains, enabled by the digital Battery Passport, are vital for this. Therefore, we have been funding the Battery Pass project since 2022. Its recent study underscores the importance of regulatory support for the adoption of digital product passports. It has a valuable impact on shaping future policies which promote transparency, efficiency, and environmental stewardship in the battery sector.”

The Battery Passport Value Assessment presents twelve battery passport use cases along the value chain, supplemented by an initial quantitative assessment of three of them: improved residual value assessment, improved recycling efficiency, and increased end-of-life collection. While emphasising the benefits, the study also acknowledges potential challenges as well as implementation costs and identifies interventions beyond current regulatory requirements to unlock further value.

Statement by Tilmann Vahle, Head of the Battery Pass Consortium and Director of Sustainable Mobility and Batteries at Systemiq

“We’re pleased to validate our positive expectations. However, challenges remain, particularly for small and medium-sized enterprises who should receive government support. Next, we’re going to complete our assessment with a systems level analysis, which we will publish this autumn.”
Portrait Thomas Weber
© acatech

„The new publication ‘The Value of the EU Battery Passport’ is an important signal for the circular economy: For the first time, the report makes the potential of the Battery Passport visible and comparable in concrete figures along the entire battery value chain. On the one hand, the Battery Passport provides companies with an effective tool to quantify the cost reductions and resource savings they can achieve. It also shows how new and sustainable business models can be developed to create additional value. This is an important step that leaves no doubt about the importance of digital product passports for the successful implementation of a digital and sustainable transformation.“
Thomas Weber, President of acatech

Statement by Josef Schön, Corporate Strategy, Audi

“The EU Battery Pass has several advantages for the entire industry: we gain transparency about the raw materials used, their origin and the supply chain. This is important for processing and subsequent recycling.”

From 22–26 April 2024, at Hannover Messe (Hannover, Germany), the Battery Passport Value Assessment results will be available at the Fraunhofer booth in Hall 2, Stand B24. Visitors will also be able to explore an interactive visualisation of the battery passport’s impact through three deep-dive use cases. The dashboard will allow visitors to explore quantitative modeling.

The key results will also be featured on the BMWK stage in Hall 2, Stand A18, in a handover ceremony on April 22 at 1:05 pm with Parliamentary State Secretary Stefan Wenzel.

About the Battery Pass Consortium

Co-funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the Battery Pass consortium project aims to advance the implementation of the battery passport based on requirements of the EU Battery Regulation and beyond. Led by system change company Systemiq GmbH, the consortium comprises eleven partners and a broad network of associated and supporting organisations to draft content and technical standards for a digital battery passport, demonstrate them in a pilot application and assess its potential value. The project started in April 2022 and runs over three years. Resources published by the consortium to date include the Battery Passport Content Guidance, which provides a detailed perspective on the battery passport content reporting requirements as per the EU Battery Regulation and beyond, as well as the first Technical Guidance and demonstrator for the EU Battery Passport. The Guidance provides a framework and recommendations for the technical implementation of the battery passport mandated by February 2027 in the EU Battery Regulation. With the help of the battery passport demonstrator, some of the technical approaches described in the guidelines have already been verified and implemented as examples. Find out more at https://thebatterypass.eu/.

Consortium leadership and partners

Consortium Leader: Systemiq GmbH

Consortium Partners: acatech – National Academy of Science and Engineering, AUDI AG, BASF SE, BMW AG, Circulor GmbH, FIWARE Foundation e.V., Fraunhofer IPK, Systemiq GmbH, TWAICE Technologies GmbH, Umicore AG & Co KG, VDE Renewables GmbH (subcontractor).

Associated partners: Global Battery Alliance (GBA), GS1 Germany GmbH, Kompetenznetzwerk Lithium-Ionen-Batterien e.V. (KLiB), Mercedes Benz AG, RWE Generation SE, SAP SE.

Further Information

Battery Pass Technical Guidance
Battery Pass Content Guidance
Battery Pass website
Publication “Circular Economy Roadmap for Germany“
Publication “Resource-Efficent Battery Life Cycles – Driving Electromobility with the Circular Economy“

*Disclaimer: This quantitative assessment is based on qualitative assumptions and general economic estimates for non-representative technologies and therefore contains inherent uncertainties as processes may be adopted or evolve over time.

 

Tags

Battery Pass | Circular Economy | Digitalisation | Raw Material | Recycling