The digital battery passport puts the automotive industry to the test 

As manufacturers in the automotive industry ramp up their data management to prepare for the digital battery passport (DBP), they are laying the groundwork for future growth.  

The automotive industry is scrambling to solve a digital puzzle: How to cost-effectively track and compile data for every electric vehicle (EV) battery from raw materials to recycling, then share that data seamlessly across stakeholders. The EU’s DBP has made this challenge unavoidable. Starting as a regulatory requirement for EV batteries, the DBP is just the beginning, with full product passports for steel, aluminum, leather, and rubber already on the horizon. For automakers, the question isn’t whether to build comprehensive data tracking systems, but how quickly they can get ahead of the curve. 

The DBP: regulation for sustainability  

The Digital Battery Passport is not just a concept; it’s a legal requirement. The EU Battery Regulation mandates that from February 18, 2027, all EV batteries placed on the EU market must be accompanied by a digital passport. 

This regulation represents a landmark shift in how batteries are designed, produced, used, and recycled across the EU. It introduces a comprehensive framework to ensure that batteries placed on the EU market are sustainable, circular, and safe throughout their entire lifecycle. The DBP is an integral part of the EU’s broader push for sustainability, aligning with the European Green Deal and the Circular Economy Action Plan.  

The regulation mandates that each eligible battery must be accompanied by a digital record: the battery passport, accessible via a QR code. This passport must include data on the battery’s carbon footprint, material sourcing, performance, and end-of-life handling. The passport framework is expected to soon be extended to other vehicle components like steel and textiles. For manufacturers, this means DBP compliance is not optional. But those who act early can turn this obligation into a strategic advantage.  

The path to DBP compliance is lined with benefits 

The DBP will ensure transparency across the value chain and throughout a battery’s lifecycle. Simply by accessing the DBP, different parties can know the battery’s degradation and overall history, the source and recyclability of its raw materials, and more. Thus, the DBP will keep batteries in use longer, give their components a second life, and help the automotive industry achieve transparency and circularity. 

The foundation of compliance: an industry-wide challenge across 3 pillars 

Complying with the Digital Battery Passport (DBP) requires more than collecting data. It demands a robust, interoperable digital infrastructure capable of tracking, verifying, and sharing battery information across the entire value chain. At the core are three technical pillars. 

1. The first is data standardization and interoperability. To make DBP compliance operationally feasible, data formats must be harmonized to ensure compatibility across manufacturers, suppliers, and recyclers. Initiatives like the Battery Pass project (an industry guide to digital battery passports), Catena-X (a collaborative data ecosystem for the automotive industry), and the Global Battery Alliance (an industry partnership for ethical and sustainable battery production) are developing open standards and ontologies to support this. Use of digital data labels like GS1 identifiers, universally unique identifiers (UUIDs), and semantic data models will be essential for traceability. 
2. Secure and scalable data exchange is the second technical pillar of DBP compliance. Data must be accessible via a QR code on each battery, linked to a cloud-based or decentralized data repository. Technologies like blockchain or distributed ledgers are being explored to ensure data integrity, auditability, and trust across stakeholders. Application programming interfaces (APIs) and data-sharing protocols must be designed to comply with EU data privacy laws such as GDPR. 
3. The third technical pillar is lifecycle data capture and governance. Companies must implement systems to capture data at every stage: mining, refining, cell production, battery assembly, usage, and end-of-life. This requires integration with enterprise resource planning (ERP) systems, internet of things (IoT) sensors, and battery management systems. A strong data governance framework is needed to define ownership, access rights, and update mechanisms.

Many early adopters are supported by the end-to-end capabilities of Capgemini, and are already piloting digital twin architectures and traceability platforms to simulate and manage battery lifecycles in real time. These investments not only ensure compliance but also unlock new business models in reuse, resale, and recycling. 

For manufacturers, rising to the challenge brings a competitive advantage 

The automotive industry faces a particular challenge in preparing for—and eventually complying with—the DBP: its supply chain is extremely complex and includes many different actors around the world. This complicates Scope 3 emissions reporting, which includes the carbon footprint of every activity along the supply chain, both downstream and upstream. Collecting reliable, comprehensive data from every player is a tall task.   

Despite this challenge, forward-thinking automotive manufacturers have recognized the DBP’s long-term potential. They are seizing the strategic opportunities presented by more rigorous data collection, storage, and governance. Manufacturers that adopt new solutions and methods to stay ahead will gain a competitive edge by increasing and diversifying revenue streams. Plus, they are increasing circularity by sharing information on the age, origin, and usage of the battery’s components. With this data at hand, scarce raw materials like lithium and cobalt can be recycled or reused, cutting down on costs and reducing waste. 

The financial benefits are substantial: for example, optimized battery use and recycling pathways can improve profits by up to 58% for lithium iron phosphate (LFP) batteries and 19% for lithium nickel manganese cobalt oxide (NMC) batteries compared to traditional recycling methods.  

At the end of the day, the advantages and savings brought about by improving data management will far outweigh the costs of DBP compliance for proactive companies.  

Designing the ‘best case’ for your business 

Capgemini combines strategy and implementation to unlock opportunities. We bring our architecture blueprint, ready-made cloud and data governance solutions, and more to client conversations, so you do not need to start from a blank slate.  

We have deep expertise in designing the “best case,” i.e., the ideal way to adopt digital product passports such as the DBP. Our Product Traceability for Automotive solution is one tool that can help you reliably collect and share data with everyone in your ecosystem. 

To find out how you can unlock the advantages of the DBP, click here 

Mobility, meet action. 

You can also meet me at the upcoming IAA Mobility 2025 event to discuss about how we can together maximize opportunities, optimize data, create new models and drive efficient value from design to execution in the digital battery passport journey.

^{September 9-12, 2025 | Find us at Hall B1, Booth B22}