EV batteries: Creating the blueprint for digital product passports

A year and a half ago, the new EU Battery Regulation (EU-BattVO) came into force, introducing the first digital product passport. In the future, this passport will apply to all physical products, starting with batteries in February 2027. The automotive industry is also affected, as manufacturers must now gather the necessary information.

When a recycling company receives an old car battery today, it is often a “black box” for them. Apart from knowing that it is a lithium-ion battery, the recycler needs to know which active materials (such as lithium iron phosphate, nickel-manganese-cobalt, or nickel-cobalt-aluminum oxide) were used, how the battery was designed, and how many modules it contains. In most cases, such information would have to be obtained at great expense from the car manufacturer or even determined by chemical analysis. Sometimes it is even necessary to take samples and analyze the battery. With a battery passport, this procedure could be avoided, recycling could begin without any delays and the processes could even be automated. It also documents all emissions generated during production, use and disposal. This makes the entire supply chain transparent and traceable.

Battery: QR code for all relevant information

Static and dynamic attributes are mandatory for the battery passport as it is currently intended. Static attributes are properties and information that do not change, i.e. the raw materials processed, the manufacturers in the supply chain, the production method and recycling specifications. Dynamic attributes, on the other hand, are unpredictable and individual for each battery. These include the number of charging cycles, an indication of how long the battery has been exposed to extreme temperatures and ultimately the “health status” of the product, which improves the end-of-life diagnosis of the battery and simplifies its use in so-called second-life models. These 100 or so attributes are stored in the energy management system of an electric car. The idea of the product passport is to make these attributes accessible via a QR code.

The recycling of lithium-ion batteries is becoming increasingly important

The Fraunhofer Institute for Systems and Innovation Research ISI predicts that the number of recyclable lithium-ion batteries will increase enormously. While the quantity in 2022 was still 50,000 tons of used batteries, it is expected to increase almost exponentially to 420,000 tons by 2030 and even to 2.1 million tons by 2040.

The researchers assume that discarded batteries from electric vehicles will make up the largest share from 2035 onwards. In addition, the level of waste in cell production is still very high. Battery recycling is therefore becoming increasingly important. Accordingly, many new centers are currently being planned in Europe, each with capacities of over 50,000 tons per year. They will specialize both in pre-processing for the production of “black mass”, i.e. shredding the batteries and turning them into black powder containing valuable substances such as nickel, cobalt and lithium, and in their subsequent recovery.

How OEMs can become battery pass-ready

This makes the battery passport even more important for car manufacturers. They must now collect data (1.), get to grips with interfaces to suppliers (2.) and make their supply chain fit to issue the battery passport (3.).

1. Automotive manufacturers are currently focusing on collecting the static information required for the product passport. In some cases, the necessary processes at suppliers have not yet been digitized, meaning that the provision of data attributes initially requires the digitization of specialist processes. Individual solutions are always unavoidable here. This is because data must be available in good quality.
2. Data does not necessarily have to converge at the OEM via individual interfaces. To avoid car manufacturers having to manage all interfaces to all partners themselves, there is the concept of a “data space”. Suppliers use a digital data space for which registered users are authorized and make the information relevant to the battery pass available in it. This reduces the number of interfaces. Catena-X, an association in over 190 companies from the automotive industry are currently organized, is developing such an open and collaborative data space. 
3. Since product passports do not yet exist, the market is positioning itself. Not only Catena-X will offer its own battery passport, but corporations like Siemens and SAP, as well as startups, are also developing corresponding software solutions. Ultimately, it will be possible to collect the data through Catena-X and then have the battery passport issued by another company. Whoever and whichever approach becomes the standard for the battery passport will create a blueprint for other products, no matter the “black box.” It will be made transparent with a single click. 

Car manufacturers struggle for clear strategies

Currently, European car manufacturers have mostly concluded agreements with Asian battery manufacturers and source car batteries from there. In addition, there is not sufficient capacity in Europe to manufacture their own batteries, either at the OEMs themselves or at specialized companies. Companies are not yet clear about the optimal strategy. Some manufacturers opt for in-house battery production, while others collaborate with specialized battery manufacturers. For battery production in Europe to become internationally competitive, issues like scaling production, industrializing processes, and reducing waste must be addressed to compete with Asian manufacturers. Since essential resources for battery production, such as lithium, nickel, and cobalt, are not sufficiently available in Europe, recycling used batteries becomes even more important.

The benefits of the battery passport at a glance:

• Product information is fully documented.
• All information can be easily accessed and used via the QR code.
• Sustainability metrics like the CO2 footprint can be standardized and shared.
• Resource use can be optimized.
• Targeted dismantling, sorting, and disposal are possible.
• Battery production can be safeguarded against material fluctuations and shortages.
• New marketplace solutions and business models can emerge.

Want to know more about the future of e-batteries? The latest research report from the Capgemini Research Institute reveals the trends shaping the industry and the opportunities they present.