{"id":641505,"date":"2021-12-02T09:00:00","date_gmt":"2021-12-02T09:00:00","guid":{"rendered":"https:\/\/www.capgemini.com\/?post_type=research-and-insight&p=641505"},"modified":"2024-03-18T12:42:14","modified_gmt":"2024-03-18T12:42:14","slug":"article-by-verkor","status":"publish","type":"research-and-insight","link":"https:\/\/www.capgemini.com\/de-de\/insights\/research\/article-by-verkor\/","title":{"rendered":"Article by Verkor"},"content":{"rendered":"\n
\"Gilles-Moreau\"<\/picture><\/div>
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\"capgemini-research-institute\"\/<\/div><\/div><\/div>

Article by Verkor<\/h1><\/div>

Sustainability, circularity, and collaboration: recharging the European battery industry<\/h2>
Download report<\/span>13 MB pdf<\/span><\/a><\/div>
Download infographic<\/span>2 MB pdf<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div><\/header>\n\n\n\n
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by Gilles Moreau<\/strong>, Chief Innovation Officer, Verkor<\/h3>\n\n\n\n

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The backdrop of climate issues relating to the transport industry, and the surge in electric-vehicle (EV) sales in response to them, has put the development of eco-friendly batteries center-stage as a key catalyst for energy transition, re-shoring industry, and enabling a low-carbon economy.<\/p>\n\n\n\n

But how can the battery lifecycle \u2013 from extraction, to production, to end-of-life management \u2013 be made truly sustainable? How can the raw material sourcing strategies focus on a green differentiation? How can the battery-manufacturing carbon footprint be minimized? And how can battery recycling be streamlined and rendered more efficient? Finally, what new business and operating models can emerge in this space? These are the key questions, which \u2013 if properly addressed \u2013 will ensure the industry\u2019s social and environmental viability in the long term. These areas are also fundamental requirements of the new European regulatory framework, making them an unavoidable part of organizational strategies. Together with the optimal management of shared resources, they are vital to the energy transition, and therefore to a company such as Verkor.<\/p>\n\n\n\n

Below, we highlight five key recommendations in this space and illustrate the role new technologies can play:<\/p>\n\n\n\n

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Focusing on the provenance of raw materials<\/h3>\n\n\n\n

Lithium-ion batteries contain materials often described as \u201ccritical.\u201d These include lithium and cobalt. It is important to note that, although they are finite resources, lithium and cobalt (unlike fossil fuels, which evaporate to leave CO2) can be reused. This means that, with careful management, the flow of these resources can be relatively secure. However, the sourcing and extraction of these raw materials also raises questions around environmental, social, and governance (ESG) aspects.<\/p>\n\n\n\n

It is for these reasons that constructors and regulators are increasing pressure on battery manufacturers to authenticate the provenance of their raw materials and provide assurance that the extraction of these materials neither pollutes the local environment, nor involves unethical labor practices.<\/p>\n\n\n\n

A manufacturer who wants to guarantee traceability and high ethical standards can either procure its raw materials directly, or work with an active-materials supplier who can guarantee the origin of the material. This is where partnerships within the value chain play such a vital role. Technologies such as blockchain can help to address traceability challenges. Track-and-trace functionality solutions implemented with blockchain enable entire supply-chain networks to document updates to a single shared ledger, which provides total data visibility and a single source of truth. Volvo is a case in point. The Swedish automotive manufacturer works with its EV-battery suppliers to create a digital ledger that tracks the source of critical materials, such as cobalt.[1]<\/p>\n\n\n\n

Manufacturers who procure their supplies with a long-term perspective are generally rewarded with greater sustainability, which has knock-on benefits in terms of competitiveness and improved quality and, consequently, reputation. The provenance of raw materials is one of the pillars of the strategy adopted by French battery manufacturing startup, Verkor. The organization is focused on building key strategic partnerships across the entire value chain, so that it has oversight of every step of the way.<\/p>\n\n\n\n

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Reducing the production carbon footprint<\/h3>\n\n\n\n

Time and again, the question is raised of the size of the carbon footprint produced by the battery-manufacturing process. EVs have a considerably larger carbon footprint in manufacturing than internal-combustion engine (ICE) vehicles, owing to the demands of the battery-production process (for instance, a standard 10 tons of CO2 for EV car versus only five tons for an ICE car). However, over its lifecycle, the EV footprint is smaller (for instance, in Europe, 10 tons of CO2 is produced in powering an EV for 150,000 km, and even lower at two tons in a country such as France, which has a decarbonized energy mix \u2014 versus 25 tons for an ICE car).<\/p>\n\n\n\n

In the same way that low-carbon energy reduces the battery\u2019s carbon footprint, production can be optimized by using certain manufacturing procedures and processes:<\/p>\n\n\n\n