Newsletter October ‘25
This German law replaces the old Batteriegesetz and integrates the EU’s strict requirements on battery design, sustainability and responsible supply chain due diligence. It reinforces extended producer responsibility and sets detailed mandates for battery collection, recycling, and reporting, ensuring Germany is prepared as the EU regulation’s provisions (in force since August) roll out across member states. These developments continue to reshape the battery supply chain across Europe.
China – Export Controls on Battery Tech
China moved to tighten control over advanced battery materials, announcing new export licensing requirements on 9 October for high-performance lithium battery technologies and related items. The curbs – targeting batteries above a certain energy density and key manufacturing equipment – prompted some overseas buyers to rush shipments out of China ahead of the early-November effective date. However, by the end of October, a U.S.–China accord led Beijing to pause these new battery and mineral export restrictions for one year. This temporary reprieve, part of a rare earth trade deal, eased immediate supply chain transparency concerns while earlier export controls from April remain in place.
United States – EV Tax Credit Ends
In the U.S., sweeping budget legislation enacted this summer officially eliminated federal EV purchase incentives as of 30 September 2025. The $7,500 tax credit for new EVs (and $4,000 for used EVs) has now expired. Automakers and analysts expect a short-term surge in EV sales by consumers racing to beat the deadline, followed by a potential slowdown in adoption. Industry groups caution that removing these incentives could temper U.S. EV demand and impact domestic electric vehicle battery supply chain investments going forward. Companies are now navigating heightened market uncertainty but fewer subsidies.
Battery Passport & Traceability
Battery Passport Progress
With the EU’s digital product passport mandate approaching (by 1 February 2027, all EV batteries in Europe must carry a battery passport disclosing material origins, carbon footprint and recycled content), industry players are accelerating their traceability efforts.
Other leading cell manufacturers in Asia, such as CATL and BYD, are developing internal sustainability methodologies to align with global benchmarks and the evolving EU batteries regulation landscape.
Traceability & Data Standardization
Beyond company-specific initiatives, the industry is coalescing around common standards to enable supply chain transparency at scale. In September, SAE International introduced Standard J3327 – EV Battery Global Traceability Record – the first framework to document and track critical minerals through every stage of a battery’s life. This new standard creates a structured digital record for each battery, supporting accurate material traceability compliance and country-of-origin checks.
J3327 is designed to complement the EU’s digital product passports system, strengthening verification and preventing falsified sourcing claims. Many Western automakers are already piloting digital passports for new EV models, recognising them as essential for compliance reporting and customer expectations.
Across the sector, momentum remains proactive: through advanced tracking technology, standardized data metrics, and cross-industry partnerships, the battery materials supply chain is gearing up for verifiable and transparent sourcing by the time formal passport rules take effect.
Circularity & Innovation
Recycling Momentum
Efforts to “close the loop” on battery materials saw significant investment in October. Nevada-based Redwood Materials, a leading battery recycler, raised $350 million to expand its recycling and materials production operations. This comes as governments prioritize domestic supplies of critical raw materials, and as clean energy technologies drive demand for lithium, nickel, cobalt and other key metals. Redwood’s facilities recover these elements from end-of-life batteries and scrap, providing a sustainable source of battery-grade materials and easing pressure on the lithium battery supply chain.
The company plans to scale its U.S. operations – including recycled lithium, nickel and cobalt production – and expand its energy storage deployment business. Its partnerships with major automakers and battery makers integrate recycled materials back into new cells, strengthening domestic resilience in the battery supply chain.
Circular Partnerships & Second-Life
Automakers from General Motors to Hyundai have invested in or partnered with recyclers to secure sustainable secondary materials for future EV production. Meanwhile, second-life battery programs are gaining traction. Redwood launched a major second-life installation using repurposed EV packs – a 12 MW/63 MWh microgrid powering an AI data center in Texas.
Such projects demonstrate how used EV batteries can deliver value after their automotive life, supporting the battery storage supply chain management ecosystem by extending product life before recycling. These circular innovations reduce waste, recapture materials, and cut the overall carbon footprint of batteries through every stage of the car battery supply chain.
Sources Consulted
Reuters (2025/07/03), Reuters (2025/10/23), Reuters (2025/10/30), Electrive (2025/10/27), Argus Media (2025/10), Charged EVs (2025/09/15), Company Press Releases
