Newsletter January ‘25
Supply Chain Transparency & Sourcing
Electric vehicle manufacturers intensified efforts to map the origins of battery materials and ensure ethical sourcing practices. Several leading automakers implemented or expanded the use of digital tools like battery “passports” to track the provenance of raw materials, recycled content, and carbon footprint, proactively aligning with upcoming regulations. Companies including Mercedes-Benz and Volkswagen notably increased supply chain oversight in preparation for the EU’s stringent due diligence rules, requiring detailed traceability of critical minerals like cobalt and lithium from extraction through to battery production. Major battery producers, such as CATL, Samsung SDI, and SK On, also advanced transparency initiatives, including the development of cobalt-free battery technologies to mitigate dependency on minerals associated with higher sustainability risks, thus aligning closely with the overall sustainability targets of automakers.
Circular Battery Economy
Late 2024 also saw big advances in recycling and the circular economy for batteries. Mercedes-Benz opened a high-tech battery recycling plant in Germany that can recover up to 96% of critical metals for reuse. Battery makers and car companies formed new closed-loop partnerships: Volvo teamed with CATL to recycle end-of-life EV batteries into new cells, and BMW partnered with recycler Redwood Materials to reclaim lithium, nickel and cobalt from used packs. Established recyclers expanded as well – Li-Cycle secured a major U.S. government loan in late 2024 to scale up its New York recycling hub, and Fortum Battery Recycling expanded its capacity in Europe. Even mining and materials giants are investing in circularity: Glencore deepened its ties with battery recyclers, Anglo American kicked off R&D on better extraction of metals from spent batteries, and Albemarle (the largest lithium producer) pushed ahead with plans for cleaner lithium refining. These initiatives aim to cut waste, reduce reliance on virgin mineral mining, and lower the overall carbon footprint of battery production.
Standards & Policy Updates
New standards and regulations are pushing the battery value chain toward greater sustainability and data sharing. In January 2025, Germany published the DIN SPEC 99100 standard defining data requirements for the upcoming EU Battery Passport, helping companies prepare to share detailed information on each battery’s components, carbon footprint and supply chain. The EU Battery Regulation is rolling out in phases: by early 2025 EV batteries in Europe must carry a carbon footprint label, and by 2027 a Battery Passport becomes mandatory. Other regions are following suit – South Korea, for example, from Feb 2025 will require unique IDs and other transparency measures for EV batteries. In the U.S., while no battery passport law exists yet, the Inflation Reduction Act’s tax credits are driving automakers to verify critical mineral sources to qualify for incentives. Tracking of GHG and other ESG metrics has also become a priority, with companies publishing more data and adopting new digital systems to comply.
Sources Consulted: Reuters (2024/06/04), ESG Today (2024/10/21), Teslarati (2025/01/06), The Battery Pass consortium (2025/01/16), Auto Tech News (2025/01/16), Transport & Environment (2025/05), International Mining (2024/01/26), Reuters (2025/03/17), company press releases.
