Newsletter May ‘25
On May 21, proposals under an “Omnibus” package recommended postponing the start of mandatory supply chain due diligence requirements for battery minerals by two years – from August 2025 to August 2027. This delay, which still awaits final approval, is aimed at giving battery producers and material suppliers more time to prepare robust audit and reporting systems. The due diligence rules will eventually require companies to trace and publicly report the sourcing of cobalt, lithium, nickel, and natural graphite in their batteries, addressing human rights and environmental risks. EU officials emphasized that this adjustment is about “helping the battery industry better prepare” while maintaining the Regulation’s sustainability ambitions. Other aspects of the law – such as battery recycling targets and performance labels – remain on track, underscoring regulators’ commitment to a greener and more transparent battery value chain.
Battery Passport & Traceability
Momentum is growing behind digital “battery passports” that track a battery’s materials, carbon footprint, and lifecycle. In late April, the EU-backed Battery Pass consortium concluded a two-year project, publishing technical guidance and a demo for a future Battery Passport system. This lays groundwork for 2027, when EV and industrial batteries in Europe must carry a digital passport under the Battery Regulation. The passport will serve as a digital twin of the battery, recording details like raw material provenance, recycled content, and the battery’s state-of-health over time. Automakers and suppliers are already piloting such tools. This reflects a broader trend: major EV producers and material companies are investing in traceability systems (often blockchain-enabled) to assure ethical sourcing and to meet upcoming EU requirements on disclosure. These early efforts will help refine the chain-of-custody data sharing needed for full passport roll-out in the coming years.
Circularity & Innovation
Advances in battery recycling and circular economy solutions featured prominently in May. European startups have reported breakthroughs in recovering critical materials from end-of-life lithium-ion batteries. UK-based Altilium, for example, announced that EV cells made with its recycled cathode materials match or exceed the performance of those using virgin metals. Impressively, the recycled material cut manufacturing carbon emissions by about 70% compared to new mining. In Germany, another startup, tozero, is piloting “net-zero” emission processes to recycle graphite, which could significantly lower the overall carbon footprint of batteries. These innovations align with EU goals: starting in 2030, EV batteries in Europe must contain minimum recycled percentages of lithium, cobalt, and nickel. Established industry players are also bolstering circularity. BASF, a major battery materials supplier, announced plans to scale up battery recycling capacity in Europe, integrating a new “black mass” processing plant to retrieve lithium, nickel, cobalt, and other metals from used batteries. Automakers are embracing “second-life” uses for batteries: even heavy-vehicle maker Iveco has partnered with BASF to ensure its retired electric truck batteries are collected, repurposed or recycled in line with circular economy principles. Overall, May saw strong cross-sector focus on keeping battery materials in use longer – through reuse in energy storage, improved recycling tech, and upstream design for recyclability – all of which reduce waste and greenhouse gas impacts in the battery supply chain.
Sources Consulted: Reuters (2025/02/13), Reuters (2024/06/04), Council of EU (2025/06/19), Latham & Watkins (2025/05/28) , BASF Press Release (2025/06/03) , Reuters (2024/01/23)
