Greater Transparency with the
AVL Digital Battery Passport
“The AVL Digital
Batery Passport is
a game changer for
compliance with the
new EU Bateries
Regulation”
attery development is making rapid progress. In addition
to technological innovations, there is an increasing
focus on the ecological and social aspects of battery
production. This includes the carbon footprint throughout the
entire value chain of a battery from production and second
li�e to �ltimate recycling. �o t�is end, t�e �� �as ratified a
new Batteries Regulation: Starting February 2027, all batteries
sold in Europe for electric vehicles, light-duty vehicles, and
industrial batteries with a capacity of more than 2 kWh must
have a unique battery passport.
To comply with the stricter EU requirements regarding
sustainability and circularity and to generate added value from
the progressive digitalization of the value chain, we developed
the AVL Digital Battery Passport. This unique digital solution
facilitates traceability and transparency throughout the battery
lifecycle. Our passport makes an important contribution to
greater sustainability and to the creation of a transparent
circular economy in battery production.
The AVL Digital Battery Passport is the digital counterpart to
the physical battery. It contains all relevant data for continuous
documentation of the battery and thus provides a digital
representation for the legislator, various parties along the
value chain, and the end user. The passport comprises unique
identification as well as in�ormation on �er�ormance, li�etime,
material usage and recycled materials, compliance with due
diligence in the supply chain, and the end-of-life management
of the battery.
The data can be accessed from a user-friendly dashboard
and used by other systems via standardized interfaces.
��is ena�les verification o� com�liance wit� t�e ��
Batteries Regulation for documenting the ecological and
social sustainability of the batteries and being able to
take optimization measures where necessary. Automobile
manufacturers, recycling companies, and supervisory
authorities have quick and easy access to all relevant
information.
�he �� ��tterie� �eg���tion re�re�ent� � �ignifi��nt
�h���enge �or the ��to�otive in���tr�. �hi�h wi�� �e the �o�t
�i����t ���e�t��
The most challenging part will be ensuring sustainability
throughout the entire lifecycle of the battery, including the
procurement of raw materials, manufacturing, usage, and
recycling. Companies will need transparent supply chains to
guarantee complete and tamper-proof entry of all data. There
are also some organizational challenges, requiring a new type
of cooperation between customers, suppliers, and possibly
even competitors.
�� the in���tr� re��� �or thi��
Companies are taking up the challenge, but some detailed
issues still need to be addressed. Smaller companies in
particular will be faced with high levels of expenditure in
proportion to their revenue. Cooperations will be an essential
feature all along the supply chain and between current
competitors – and must be prepared carefully. This requires
expertise in the orchestration of the value chain.
�ow wi�� the ��tterie� �eg���tion �ontin�e to �eve�o� in the
��t�re�
This is comparable to the EU emissions regulations for
vehicles. As time progresses, these cover more vehicle
segments, and limit values get stricter. The EU Batteries
��r state�o��t�e�art, certified clo�d in�rastr�ct�re g�arantees
maximum data security. The data can simply be integrated
into existing IT landscapes, including IoT/OT/IT systems.
Tamper-proof methods for authenticating digital assets
ensure the integrity of the battery data.
The combination of consulting services (e.g., regarding
legislation, the carbon footprint, or dismantling batteries, as
well as sustainability strategies and ESG implementation),
technical expertise (platform, hosting, application engineering),
and integration experience with IT and IoT systems as well as
value-added services makes for a unique AVL portfolio.
Together with renowned external consultancies and Microsoft,
AVL can provide customers with holistic and extensive
support in all areas relating to the introduction of a battery
passport.
��is a��roac� and t�e �e�i�le, ��t�re��roo� integration o�
requirements from battery legislation ensures AVL is well
prepared for other planned future product passports such as
the vehicle passport.
�eg�lation also defines t�e re��irements t�at ��t�re �attery
types will have to meet, and how the recycling ratios are to
be adjusted. The major distinction is that the EU emissions
reg�lations a��ly to t�e entire ve�icle �eet o� a man��act�rer,
while the batteries regulation affects each individual battery
that is brought to market.
�i�� there �e ���� �N� �igit�� ��tter� �����ort in the ��t�re�
To start with, we will probably see several solutions. There
are various technologies for hosting data, such as blockchain
and cloud-based solutions. Competition in these areas will
foster innovation. Ideally, the EU will create a framework for
compatible solutions. This would allow a perfect solution to
emerge over time.
�� it �o��i��e to en��re ��t� ����it� in the �igit�� ��tter�
�����ort�
The legislator can take action to ensure that the data in
the digital battery passport is correct and trustworthy by
introducing standardized requirements and compulsory
audits, for example. Suitable technologies, digital signatures,
and encryption can also be used to guarantee traceability.
The accuracy and integrity of the information in the digital
battery passport are critical to the success of the EU Batteries
Regulation.
Interview with
Prof. Dr. Florian Kauf
Partner Operations Transformation, PwC
HOME OF INNOVATION
ENERGY AND SUSTAINABILITY
14 | 15
2024