– Regulation introduces requirements for managing battery lifecycle metrics such as carbon footprint and safety
– Digital ‘passport’ technology enables tracking and transparency through QR codes on batteries
– Value assessment of Battery Passport shows potential benefits for industry, consumers, and policymakers, including cost reductions and better procurement decisions.
The EU is introducing regulations requiring anyone placing a battery in the market to manage aspects such as carbon footprint and safety. A digital ‘passport’ with QR codes will track and provide transparency on metrics such as recycled content and performance. The Battery Passport Consortium, responsible for the rollout, recently published the first-ever study into the value of the Battery Passport.
The consortium’s study analyzed the benefits and challenges of implementing the Battery Passport for stakeholders like consumers, policymakers, and industry. Funding from Germany’s Ministry of Economic Affairs supported the assessment, which presented various use cases for the passport along the value chain. Some use cases could be immediately enabled by existing data requirements, while others would require further regulatory changes.
The passport will impact how the battery energy storage system industry thinks about procurement, performance, and end-of-life. Displayed metrics on the QR code will enable better residual value determination and reduce costs for independent operators. Implementing the passport may be complex, but companies like Gore Street Energy Storage Fund see it as a way to support sustainability standards and make sustainable investments more competitive.
The EU Batteries Regulation directive places responsibility for the battery lifecycle on the economic operator who places the battery in the market, not just the manufacturer or distributor. The Battery Passport will aid battery procurement, performance, and durability assessments by providing metrics for assessing Capex and Opex costs, enhancing bankability. Overall, the Batteries Regulation will drive changes in how battery end-of-life and recycling are managed.