Newsletter July ‘25
This provides producers and suppliers more time to implement audited systems for tracing cobalt, lithium, nickel, and graphite, while other rules—such as battery passport requirements by 2027—remain firmly on track. Policymakers described the move as a way to “ensure readiness without compromising ambition,” signalling continued commitment to sustainable, transparent supply chains.
Beyond Europe, alignment is growing globally. In the U.S., provisions in the Inflation Reduction Act are prompting automakers and battery makers to restructure supply chains to meet local-content and responsible-sourcing criteria for EV incentives. Meanwhile, industry-wide initiatives such as the Global Battery Alliance (GBA) are helping standardize how companies report greenhouse gas (GHG) and human rights metrics, creating a framework that regulators can build upon.
Battery Passport & Traceability
Momentum for digital traceability reached new milestones in July. The German-led Battery Pass consortium finalized its blueprint for Europe’s upcoming digital battery passport, offering a clear data model to support the 2027 mandate. The passport will enable every EV and industrial battery to carry verifiable information on material provenance, carbon footprint, and recycled content via a QR code—accessible to regulators, recyclers, and consumers alike.
Automakers are already leading by example: Companies like Mercedes-Benz and Volkswagen are strengthening their supply chain monitoring in anticipation of EU requirements. These early deployments are shaping standards for the entire sector, helping ensure that by 2027 every battery will have a “digital twin” to document its full lifecycle responsibly.
Circularity & Innovation
Across the industry, July underscored a strong shift toward circular battery systems. In Europe, BHP partnered with CATL and BYD to electrify its mining fleet, integrating battery-powered trucks and locomotives that will drastically cut diesel use and emissions at mine sites—an upstream investment that benefits the entire EV ecosystem.
On the recycling front, General Motors and Redwood Materials announced a major agreement to repurpose used EV batteries into new grid storage projects. Redwood’s Nevada site is now redeploying retired GM battery packs into large-scale microgrids, illustrating how second-life batteries can extend value before eventual recycling. Established recyclers like Umicore, Fortum, and Li-Cycle are also expanding their facilities, feeding recovered lithium, nickel, and cobalt back into production loops. These innovations—and the data that battery passports will soon track—are rapidly pushing the sector toward lower waste, lower emissions, and higher material reuse.
Sources Consulted: Reuters (2025/07/14), ESG Today (2025/07/17), Council of the EU (2025/07/18), Bloomberg (2025/07/21), AutoTech News (2025/07/26)
