Introduction

The automotive industry is undergoing a significant transformation, with the rise of electric vehicles (EVs) and the push towards sustainable transportation. As more and more EVs hit the road, there is a growing need for transparency and accountability in the battery supply chain. To address this issue, a consortium of over 120 companies, including major automakers like Honda, Ford, Nissan, Mazda, General Motors, Stellantis, and BMW, is working on introducing “battery passports” based on blockchain technology. In this article, we will explore what battery passports are, why they are important, and how they work.

What are Battery Passports?

Battery passports are digital records that provide detailed information about a battery’s supply chain and history. They are designed to track a battery’s journey from raw materials to finished product, including information about where the materials were sourced from, the percentage of recycled components, the amount of carbon dioxide emissions associated with it, and various human rights protections. The goal is to create a transparent and traceable supply chain that can help ensure ethical and sustainable production practices.

Why are Battery Passports Important?

Battery passports are important for several reasons. First, they can help ensure that batteries are produced in an ethical and sustainable manner. By tracking the supply chain and monitoring the production process, it becomes easier to identify potential issues such as child labor or environmental damage. Second, battery passports can help reduce waste and promote recycling. By providing detailed information about a battery’s components and history, it becomes easier to recycle and reuse materials. Finally, battery passports can help improve safety and reliability. By tracking a battery’s condition in real-time, it becomes easier to identify potential issues before they become a problem.

How do Battery Passports Work?

Battery passports are based on blockchain technology, which is a decentralized digital ledger that allows for secure and transparent transactions. Each battery is assigned a unique identification number that is recorded on the blockchain. This number is used to track the battery’s journey from raw materials to finished product, including information about where the materials were sourced from, the percentage of recycled components, and the amount of carbon dioxide emissions associated with it.

The Mobility Open Blockchain Initiative (MOBI) is leading the effort to develop battery passports. MOBI has drafted standards with Amazon Web Services and Hitachi to ensure that all batteries are assigned a unique identification number and that their journey is recorded on the blockchain. MOBI also plans to trace the production of every cell within a battery to calculate its carbon footprint and track the condition of a battery in real-time.

The European Union will require digital passports for batteries from 2026. Other major markets like the United States and India are considering the implementation of similar regulations. The introduction of battery passports will allow authorities to better enforce recycling requirements for battery materials and promote ethical and sustainable production practices.

Conclusion

Battery passports are an important development in the automotive industry’s push towards sustainable transportation. By providing detailed information about a battery’s supply chain and history, they can help ensure that batteries are produced in an ethical and sustainable manner, reduce waste and promote recycling, and improve safety and reliability. The consortium of over 120 companies working on introducing battery passports is a significant step towards creating a transparent and traceable supply chain for EV batteries. As more and more countries adopt regulations requiring digital passports for batteries, we can expect to see widespread adoption of this technology in the coming years.