Newsletter September ‘25
This delay aims to give battery producers and exporters more time to implement rigorous responsible sourcing policies and traceability systems before the rules take effect. In the Democratic Republic of Congo, authorities announced a shift from an export ban to a quota system for cobalt. Beginning October 16, DRC will lift its cobalt export ban and instead impose annual export quotas (96,600 tonnes in 2026 and 2027) to manage global supply. The quota system is intended to support fair pricing and encourage local mineral processing, with a portion of future volumes reserved for strategic national projects. These changes reflect regulators’ efforts to balance sustainability goals with industry realities, ensuring a stable and ethical battery material supply chain.
US Climate Disclosure Laws: In the United States, climate transparency took a leap forward at the state level. California’s Air Resources Board released a list of over 4,000 companies that must comply with new climate disclosure laws. Starting in 2026, large companies (>$1 billion revenue) doing business in California will be required to report their direct emissions (Scope 1 and 2) and value-chain (Scope 3) emissions – including those from supply chains, travel, and materials procurement. This expansive mandate, the first of its kind in the U.S., will push automakers, battery manufacturers, and other corporates to closely track and report greenhouse gas (GHG) emissions associated with their products. Together, these regulatory developments signal a clear global trend: policymakers expect greater transparency and accountability in the battery supply chain, from mine to market.
Battery Passport & Traceability
Battery Passports on the Rise: With the EU’s Digital Battery Passport requirement on the horizon, industry players are ramping up traceability initiatives. (From 1 February 2027, all EV batteries sold in Europe must carry a “battery passport” disclosing key material origins, carbon footprint and recycled content.) Anticipating this, Volvo Cars launched the world’s first EV battery passport for its new EX90 SUV almost three years ahead of the mandate, detailing the origins of raw materials, components, recycled material content, and the battery’s full carbon footprint. The aim is to provide consumers and regulators with trustworthy data on each battery’s provenance and sustainability. Other major automakers such as Mercedes-Benz and Volkswagen are also preparing digital passports for their future EVs, viewing them as essential tools to meet customer expectations and regulatory compliance. This September, the Global Battery Alliance (GBA) introduced Battery Benchmarks – the first set of definitive global sustainability metrics for batteries – in partnership with the International Trade Centre. These benchmarks will serve as a common yardstick for certifying a battery’s ESG performance under the GBA’s Battery Passport program, helping align industry efforts with the upcoming EU rules.
Global Traceability Standards: Beyond passports, standardization is advancing. SAE International published the new EV Battery Global Traceability Standard (J3327), creating an industry-wide framework to document and track the journey of critical minerals from extraction to end-of-life. This standard – the first of its kind – addresses the urgent need for consistent, verifiable chain-of-custody records across suppliers. J3327 is also designed to complement Europe’s battery passport system, enhancing data compatibility and reliable country-of-origin verification. Together, these initiatives promise to streamline compliance and build trust: common data standards and digital passports will enable battery makers, car manufacturers, and material suppliers to demonstrate responsible sourcing and lifecycle transparency more efficiently. The tone across the sector is optimistic and collaborative. By proactively adopting traceability technologies and sharing best practices, the battery industry is positioning itself to deliver on both regulatory requirements and consumer expectations for sustainable, ethically-sourced batteries.
Circularity & Innovation
Recycling Momentum: Efforts to “close the loop” on battery materials accelerated in September. In the US, Redwood Materials – the battery recycler founded by former Tesla CTO JB Straubel – partnered with the Electrical Safety Foundation International to launch a public awareness campaign highlighting lithium-ion battery recycling. The campaign emphasizes that today’s discarded electronics and EV batteries are tomorrow’s resources. Redwood reports it now recovers over 95% of critical minerals like lithium, cobalt, nickel and copper from used batteries and returns these materials to the domestic supply chain. This not only reduces the need for virgin mining but also supports energy independence by keeping valuable minerals in circulation. Meanwhile in Europe, major investments are boosting recycling capacity. Finland’s Business Finland agency granted €84.6 million to Fortum Battery Recycling to expand its hydrometallurgical recycling facility – already the largest in Europe – from a current 3,000 tonnes to as much as 28,000 tonnes of black mass processed per year. This expansion will significantly increase Europe’s ability to recover cobalt, nickel, lithium and other materials from end-of-life batteries, helping meet EU targets for recycled content in new batteries by 2030. Across the industry, from startups to established firms like Umicore, the race is on to scale efficient recycling technologies and secure secondary raw materials for the next generation of batteries.
Innovative Partnerships: Companies are also collaborating in novel ways to improve sustainability. A notable example is mining giant BHP’s new partnerships with Chinese battery leaders CATL and BYD. Announced this quarter, the cooperation will pilot electrified mining trucks and locomotives using advanced battery systems, including fast-charging infrastructure and battery recycling solutions. By converting heavy mine equipment from diesel to battery power, BHP aims to cut its operational emissions and set a template for cleaner mining practices across the sector. The joint studies will explore reusing and eventually recycling these batteries, creating a circular model even for industrial applications. Automakers and battery producers are likewise teaming up with raw material suppliers on “mine-to-manufacturing” traceability and low-carbon production methods. From Albemarle’s lithium operations to BASF’s cathode materials, the value chain is seeing continuous innovation focused on reducing environmental impact. Importantly, many of these initiatives also tie into the concept of the Battery Passport – feeding data on recycled content and CO₂ footprint back into digital records. By investing in recycling and cleaner technologies now, companies such as Mercedes-Benz, SK On and LG Chem are future-proofing their supply chains. The sector’s overall outlook remains positive: September’s developments show a committed push toward a more responsible, circular battery ecosystem, with collaboration and innovation driving progress at every link in the chain.
Sources: Reuters (2025/07/14), Reuters (2025/09/22), Bloomberg (2025/09/07), ESG Today (2025/09/26), Company Press Releases (2025/09/25)
