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26.06.2024

News

June 2024 Newsletter: The Time for Action is Now

Battery passports—digital tools that disclose the inherited upstream production activities for batteries, including the origin of key materials, embedded carbon emissions and recycled content—will be mandatory in the European Union from February 2027. While this date may seem some way off, the reality is that it’s right around the corner, and battery makers and industrial manufacturers, such as automakers, need to start acting now to meet the deadline.

Quite rightly, in a recent webcast, Morrow Batteries, discussed how implementing upstream traceability and generating data for battery passports is already becoming ‘the new normal’ and spurring coordination with all participants across their battery value chains.


Take Volvo Cars, for example. Driven by a company ethos of safety, security, and transparency, the brand recently announced that the world’s first battery passport will come standard with its all-electric SUV, the EX90. Working hand-in-hand with Circulor since 2019, EX90s will be delivered to EU and U.S. customers this year with battery passports that share the provenance and material journey information of lithium, cobalt, nickel, and graphite – as well as recycled content and embedded carbon emissions. This achievement—granular, end-to-end transparency attributed to the product itself, and delivered to customers years ahead of regulation—marks a new era of transparency and signals an end to the previous period of piloting. In addition to readying for compliance in February 2027, companies can expect a myriad of benefits by implementing traceability today:


  • Supplier Collaboration: Manufacturers can more thoroughly evaluate suppliers and engage with new partners. Starting now gives companies time to better understand their upstream participants and make changes as needed.
  • Competitive Advantage: Early adoption of responsible and sustainable practices can differentiate a company from its competitors. Companies that demonstrate their commitment to these areas—especially with product-level proof—can attract increased marketing, business, and investment potential.
  • Influence and Lead: By being an early mover, companies can play a pivotal role in shaping standards and practices, influencing the direction of the industry, inspiring others to follow suit, and becoming synonymous with social responsibility.

Integral to battery passports, and digital product passports for that matter, is granular, harmonized traceability data across the supply chain. The ability to trace battery materials from the mine, or recycling facility, to finished product, piggybacking on suppliers' production systems to track materials throughout the supply chain, requires a tried, tested, neutral third-party solution such as Circulor’s, which you can read more about here.




What we're reading...



80%+ of companies see sustainability as a potential revenue driver


According to a recent Morgan Stanley study, where over 300 global companies with revenues above $100 million were surveyed, nearly all companies acknowledged the importance of sustainability in their long-term strategies, with 85% viewing it as an opportunity for value creation. In addition, regulatory compliance and a company’s moral responsibilities constitute the top three motivations for adopting a sustainability strategy.


Electric Vehicle outlook from Bloomberg


Bloomberg NEF sees fully electric and plug-in hybrids reaching 33% of new passenger vehicle sales in 2027, an increase of roughly 18% from last year. While China still dominates the global EV market, sales are rising elsewhere too – with EVs no longer being only a wealthy country phenomenon. Developing economies like Thailand, India, Turkey and Brazil are all experiencing record sales as more low-cost electric models are targeted at local buyers.


How questionable titanium got into Boeing and Airbus jets


The New York Times highlights concerns about safety and airworthiness as Boeing and Airbus received fake titanium with falsified certificates of conformity. This incident underscores the need to enhance supply chain visibility. Implementing digital systems, like Circulor's, eliminates human error and reduces the risk of fraud.


UK looks to expand its Emissions Trading System to new sectors


ESG Today reports on the announcement by the UK's Emissions Trading Scheme (ETS) Authority of a new consultation package. The proposal includes expanding the ETS carbon pricing system to cover new sectors such as energy from waste and waste incineration plus integrating greenhouse gas removals into the ETS to address the growing issue of carbon leakage and the associated trade and sustainability risks.


The EV revolution’s impact on battery material producers


Following a panel at the RBC Capital Markets Global Battery Value Chain Conference earlier this year, Marina Calero discusses how material producers are responding to EV market fluctuations, metal sourcing concerns, and new requirements that will expose every battery’s carbon footprint. The article includes insights from Circulor’s CEO, Douglas Johnson-Poensgen, Laurent Charbonnier from Sibanye-Stillwater , Tzveta Tchorbadjieva from Anglo American and George Heppel from BASF .




What we're sharing...


World’s first battery passport, powered by Circulor


The Volvo EX90, an all-electric SUV, now comes with a groundbreaking battery passport powered by Circulor. This passport, accessible through the Volvo Cars app and a QR code, provides comprehensive primary data on the battery's raw materials, components, recycled content, and carbon emissions. Read more.


And another first: end-to-end traceability of copper in wind energy


Collaboration between Ørsted, Siemens Gamesa, Siemens Energy Grid Technologies, and Circulor, has resulted in the wind industry achieving a groundbreaking milestone: the world’s first end-to-end traceability of copper used in wind turbine transformers. This transparency enhances sustainability and sets a new standard for supply chain accountability. Read more.


Circulor’s battery passport now live on the Cofinity-X marketplace


Cofinity-X manages an open dataspace that fosters a trusted environment for its participants, enabling the creation and implementation of valuable digital use cases across the automotive value chain. Circulor is proud to be part of this growing network of digital service providers, who are leading and driving sustainability, accountability and transparency in the energy transition. Read more.


“Any battery above 2 kWh of capacity will need a battery passport”


In an interview with Zag Daily, Circulor’s CEO Douglas Johnson-Poensgen explained that all batteries above 2-kilowatt-hours, including those in e-bikes, scooters, and marine batteries, will need a battery passport – and that Circulor is gearing up to support manufacturers in the new mobility industry develop battery passports, particularly as they become mandatory in the EU from February 2027. Read more.


‘The Value of the EU Battery Passport’


Further to their Battery Passport Value Assessment, Battery Pass hosted a webinar on 'The Value of the Battery Passport’. The session highlighted the benefits beyond compliance, as passports enable businesses to generate value, foster a competitive advantage through responsible sourcing, and adopt new circular business models. Watch the replay here.