Background: Evolution of electromobility and related industrial sectors.
According to Mordorintelligence research, the global electric vehicle market size is valued at USD 0.67 billion in 2024 and is expected to reach USD 1.39 billion by 2029, at a compound annual growth rate of 15.71% during the forecast period (2024-2029).
Source: https://www.mordorintelligence.com/industry-reports/electric-vehicle-market
Governments are encouraging the development of electric mobility at the legislative level, as electric vehicles are a key technology for the decarbonization of road transport, a sector that accounts for more than 15% of global energy-related emissions.
The growth of electric mobility is directly related to the growth of battery manufacturers, which in turn will drive the development of the industry of companies dedicated to the extraction for the production of batteries for electric vehicles. The McKinsey report “Battery 2030: Sustainability, Reliability and Cyclicality” highlights the impressive growth forecasts. According to which the entire lithium-ion battery chain, from mining to processing, could grow by more than 30% per year between 2022 and 2030. The value of this industry is expected to exceed $400 billion and the market size is expected to reach 4.7 TWh.
Importantly, transparency and active multi-stakeholder participation are essential to effectively manage the environmental, social and governance impacts of this rapidly growing sector.
The regulation of the sustainable economy and its relationship with the Battery Passport
The European Commission, in partnership with the Global Battery Alliance, has therefore evaluated the Battery Passport as the optimal tool to support three key aspects of sustainable battery economics for electric vehicles.
The proposed EU Battery Regulation mentions that “Due diligence (Due diligence) should be mandatory in the supply chain to minimize the social and environmental risks associated with the extraction, processing and trade of raw materials for battery production.”
Based on this, a specific technology platform has been developed for Battery Passport to maximize safety, optimize battery use throughout its life cycle and ensure responsible recycling at the end of its useful life. In this way, information about the battery and its history can be shared among all participants in the supply and production chains.
What does this mean?
All batteries for electric and commercial vehicles with a capacity of more than 2 kWh sold on the EU market will require a unique battery passport, which can be obtained by means of a unique product identifier in the form of a QR code.
Therefore, regardless of the origin of the battery, it must have a “Battery Passport” to be admitted to the European market.
The party representing the battery in the market will be responsible for entering all the necessary data in the digital register and will also be responsible for ensuring that the information is correct and up to date.
The information should also be made available to end users by providing it via a QR code.
Who are the parties involved?
As far as possible, it is important to note that the following parties will need to be involved in the battery passport process:
- Mining and processing companies.
- Battery manufacturers.
- Automobile manufacturers.
- Battery maintenance, reconditioning and recycling companies.
All companies in the battery production chain must communicate all relevant information on technical specifications to reduce environmental impact.
Who does it affect/benefit?
The Battery Passport requires ten years of supply chain transparency records to detail every step of the movement of the material from its origin to the company selling the battery in the European Union. And the accounting processes have already begun.
The EU regulatory roadmap, which regulates annual recycling performance standards and critical mineral recovery rates, is currently being implemented. By December 2030, the minimum recycling efficiency of lithium batteries should be 70%.
In addition to optimizing the management of used batteries, the introduction of the battery passport will bring other benefits for society and the economy as a whole: in particular, the guarantee of fair and safe working conditions and the close interaction of all actors in the product value chain.
What problems do we face in relation to EV battery passport management processes
1. Manual management of data, high risk of errors, non-systematic updating of information. This is especially critical for mining companies that do not have automated processes.
2. Lack of a centralized management system and consolidated data for all participants in the cycle. All information included in the battery data sheet should be based on open standards and in an interoperable format that can be transmitted through an open interoperable data exchange network.
3. Confidentiality and security. There are clear requirements for selective access, editing and sharing of data, as well as a high level of data security and confidentiality. Data authentication, reliability and integrity must also be ensured. It is worth looking for more decentralized systems that have a high degree of data immutability.
4. Requirements for the content of recycled batteries
4.1 In accordance with Article 7 and Annex II of the EU Battery Regulation, from February 2025, each battery installed in electric vehicles for sale in the European Union must have its carbon footprint calculated. This figure must cover the four main stages of the battery life cycle: mineral extraction and pre-processing, cell production, distribution and end-of-life processing (recycling).
4.2 Recycled content requirements. By the beginning of 2031, batteries must contain at least 16% cobalt, 85% lead, 6% lithium and 6% nickel that do not come from primary sources.
Critical risks in the event of noncompliance
1. Violation of the requirements of these regulations will lead to a ban on the sale and withdrawal of unsuitable products from the market. Such events will undoubtedly entail enormous financial and reputational risks, up to and including the inability to conduct business in the future.
2. It is important to remember that battery manufacturers have a great responsibility for the accuracy and security of all data. First of all, the manufacturer and the distributor will check whether the supplier is willing to provide all the necessary information and whether this data is reliable. If this is not the case, a change of supplier will take place immediately. Thus, the absence of a high-tech automated accounting of the necessary data in any of the companies in the chain – for example, in the field of mining or processing, automatically makes this company no longer competent for the sale of its products.
Solution: Data automation
Over time, the battery data sheet will need to incorporate more and more information that needs to be communicated to value chain participants. Therefore, it is critical to select an automation system and technology that can effectively adapt to changing requirements and mashup. as well as selecting a reliable company that will perform a complete automation cycle based on your company’s existing objectives.
Our company, Power Pulse Solution, is among the first to implement green automation solutions to reduce carbon footprint and integrate with Battery Passport standards.
We have received feedback from our European customers, we leverage our experience in automation with SAP and other ERP solutions to implement them in the process of Passport procurement and resource traceability.
From our experience, we can affirm that traceability must start at the root, i.e. at the deposits from where the primary minerals are extracted (Mining Sector).
We are currently implementing an automation solution for the mining industry that will comply with Battery Passport standards. We are the only ones today with the technology and know-how to prepare mining companies to comply with all regulations and implement the digital passport in Peru and Latin America.
To remain competitive in global markets 3 years from now, we must prepare for the future now.
