Newsletter November ‘25
Chancellor Friedrich Merz urged Brussels to adopt a more flexible, technology-neutral approach, citing slower EV adoption, pressure on the electric vehicle battery supply chain, and intensifying competition from Chinese manufacturers. Berlin’s governing coalition signalled support for exemptions that would allow plug-in hybrids and other transitional technologies beyond 2035, while still aligning with EU climate targets. The European Commission is now preparing updated auto emissions targets, due in December, as it seeks to balance industrial competitiveness with long-term decarbonisation goals under the EU batteries regulation framework.
China / United States – Battery Technology Export Curbs Paused
Tensions across the global lithium-ion battery supply chain eased following high-level trade talks between China and the United States. Under a one-year truce, China agreed to suspend newly announced export controls on advanced battery materials, including battery-grade graphite and high-performance lithium-ion technologies. The proposed measures had raised concerns over battery supply chain resilience and access to critical raw materials. The pause, agreed in exchange for partial US tariff relief, helped avert an immediate disruption across global battery materials supply chains, particularly for EV manufacturers and energy storage providers that rely heavily on Chinese processing capacity.
United States – Automakers Warn on Chinese EVs
In Washington, major automakers warned that China’s expanding footprint across the EV supply chain poses a strategic risk to domestic battery manufacturing. Industry leaders urged policymakers to restrict Chinese state-backed firms from establishing US production facilities, citing oversupply risks and heavy state subsidies. Lawmakers echoed concerns that unchecked competition could undermine domestic battery supply chain development, weaken supply chain transparency, and introduce national security vulnerabilities tied to foreign software and telecommunications components. While no legislation was enacted in November, the debate underscores growing protectionist sentiment as the US accelerates investment in domestic battery production and supply chain risk management.
Battery Passport & Traceability
Battery Passport Pilots
Momentum behind the EU battery passport and broader digital product passport initiatives continued to build in November. With the battery passport regulation set to take effect in 2027, more than 30 companies are now piloting passport frameworks aligned with Global Battery Alliance standards. These digital records are designed to enable end-to-end traceability along the battery supply chain, capturing data on raw material sourcing, carbon footprint, and lifecycle performance. New pilot projects in Asia, including initiatives tracking lithium-iron-phosphate batteries from extraction through recycling, highlight a shift from concept to execution. Interoperability between passport systems remains a key focus, as regulators and industry work toward globally compatible digital product passport technology that supports compliance across borders.
Traceability & Standards
November reinforced a clear trend: supply chain traceability and transparency are becoming mandatory rather than voluntary. Governments across the G7 reiterated commitments to responsible sourcing, pushing battery supply chain due diligence into the regulatory mainstream. Work continues toward harmonised standards for mineral traceability in the supply chain, including UN-led efforts to establish globally recognised transparency protocols. A new UN white paper released this month outlines how digital traceability of minerals could enable forward and backward traceability for lithium, cobalt, nickel, copper, and other critical raw materials. These initiatives aim to strengthen compliance with conflict minerals regulations, support responsible supply chains, and ensure market access under evolving EU battery regulations and global sustainability frameworks.
Circularity & Innovation
Recycling Expansion & Partnerships
Investment in battery recycling infrastructure accelerated in November as industry players moved to close the loop on critical materials. In the United States, expanded recycling capacity is strengthening the domestic battery storage supply chain, reducing dependence on newly mined resources. Major projects launched this month focus on recovering lithium, nickel, cobalt, and copper at scale, supporting long-term critical raw materials security. Cross-border partnerships between US and Asian recyclers further reflect growing recognition that circularity is essential to stabilising the global battery materials supply chain amid rising EV demand.
Second-Life & Circular Innovation
Beyond recycling, innovation in battery reuse gained momentum. European research initiatives showcased advances in AI-enabled disassembly and smart systems that optimise second-life battery deployment in stationary energy storage. These technologies improve safety, efficiency, and economic viability, extending battery lifespans before final material recovery. As automakers and utilities explore reuse models, second-life applications are increasingly viewed as a critical pillar of a circular electric vehicle battery supply chain. Together, these developments underline a broader shift toward designing batteries for longevity, recyclability, and compliance with future digital product passport requirements, ensuring sustainability from raw material extraction to end-of-life management.
Sources Consulted
Reuters (2025/10/31), Reuters (2025/11/28), Reuters (2025/12/11), Global Battery Alliance (2025/12), University of Sydney (2025/11/20), Automotive World (2025/11/17), The Cool Down (2025/11/04), Energy-Storage.News (2025/11), Electrive (2025/11/11)
