We have said that batteries and their raw materials would be the new oil several times. There are several problems related to that, such as scarcity and how sustainable extracting and dealing with these materials is. Still, the Global Battery Alliance (GBA) has tackled at least one aspect of these issues with the Battery Passport. The idea had its proof of concept revealed at the World Economic Forum in Davos.
The alliance combines companies like CATL and LG Energy Solution, Tesla and the Volkswagen Group, apart from BASF and several other enterprises based on lithium-ion cells and products that need them. Considering child labor and other human rights violations may also be involved, UNICEF is also on the boat.
The GBA defines the Battery Passport as “a digital twin of a physical battery that conveys information about all applicable sustainability and lifecycle requirements based on a comprehensive definition of a sustainable battery.” Talking like this, it seems that the Battery Passport is a non-fungible token (NFT), but that is not the idea: it is simpler and more complex at the same time.
Simple because it consists of a digital database about each battery pack. This database provides the battery pack with an identity number, a bar code, and a QR code. Anyone checking this database learns where the raw materials for each cell were mined and refined, where the cells were made, and where they were gathered to form the battery pack. All GBA members have to feed this database.
The entity commits to analyzing the data and determining how they impact the environment and society. The results should help improve individual battery quality and the industry’s overall performance. And here comes the most interesting part of the Battery Passport.
Unlike NFTs, it does not have a monetary value per se. However, it is an invaluable element when it comes to separating the wheat from the chaff. In other words, only those battery packs following all quality requirements from GBA receive its quality seal. The companies delivering these battery packs are also recognized in the process.
Consider Euro NCAP. When it dealt solely with biomechanic aspects, it built a reputation for assessing how safe vehicles were. Any vehicle with five stars was considered the safest among its competitors. With “computers on wheels,” things are a lot more complicated for the safety organization. Despite that, the Euro NCAP seal still has a positive effect on a car’s reputation. That’s what GBA’s Battery Passport wants to reproduce.
The proof of concept presented in Davos intended to show “how, by putting this data in the hands of end-users, the Passport will enable customers to make more informed purchasing decisions and drive sustainable sourcing, processing and manufacturing practices in the industry in the future.”
The Battery Passport will be mandatory in the EU in 2026. Sadly, the GBA did not address how it intends to deal with a crucial aspect of sustainability with batteries: replacing them for a feasible price. When a battery pack warranty ends, customers with EVs more than eight years old have two choices if their high-voltage batteries fail: spend more than their cars are worth on a new battery pack or sell what is left of the EV to junkyards. Nissan and Tesla are the first ones to face that dilemma, and the prevalent answer to it is pretty far from sustainable.
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