The Digital Battery Passport: What It Means for Manufacturers and Why You Need to Act Now

Battery regulation in Europe is about to change in a big way. From February 2027, all batteries over 2kWh sold on the EU market must have a Digital Battery Passport. This passport will contain verified information about how a battery is produced, how it performs over time, and how it should be reused or recycled at the end of its life.

For manufacturers and businesses supplying batteries into Europe, this is more than another regulatory box to tick. It introduces new expectations around transparency, shared data and responsibility across the entire battery lifecycle. Companies that begin preparing early will be in a much stronger position when the rules come into force.

A Major New Obligation, Not a Minor Update

The Digital Battery Passport forms part of the EU Battery Regulation, one of the most wide-ranging sustainability frameworks the EU has introduced. Its aim is to make batteries safer, more sustainable and easier to reuse or recycle.

The regulation applies to electric vehicle batteries, industrial batteries and batteries used in light mobility, including e-bikes and scooters. With the threshold set at 2kWh, most commercially important batteries are covered.

Every battery must be linked to a digital record that authorised parties can access throughout its life. This includes manufacturers, operators, maintenance providers and recyclers.

Why the EU Is Introducing the Passport

The approach is driven by practical challenges.

Europe relies heavily on imported critical raw materials, often from limited and geopolitically sensitive regions. Better traceability makes it easier to recover valuable materials and reduces the need for new extraction.

Battery use is also growing quickly. Without reliable information, batteries are often taken out of service too early or recycled in inefficient ways. The Digital Battery Passport tackles this by ensuring high-quality data is available at every stage of the battery’s life.

The wider objective is to support a more circular battery economy, where products last longer and resources are used more effectively.

What the Digital Battery Passport Will Include

The passport will store structured data covering the full lifecycle of a battery.

This includes information on materials, sourcing, carbon footprint and manufacturing processes. During operation, it records performance data such as charging patterns, degradation and maintenance history. At the end of life, it provides details on remaining capacity, safety status and material composition.

To protect data quality and trust, many systems will use secure, tamper-resistant digital infrastructure. This allows different organisations to rely on the same information without duplicating records.

Over time, this data can also support forecasting, safety monitoring and performance optimisation.

Enabling Reuse and Recycling in Practice

Good data is essential to making circular use work at scale.

Manufacturers can use real-world performance insights to improve product design and reduce failure rates. Service providers can diagnose problems more accurately and repair batteries instead of replacing them.

Reuse is particularly dependent on transparency. Many batteries removed from vehicles still have useful capacity, but without trustworthy data it is difficult to assess their suitability for second-life applications. The Digital Battery Passport provides the confidence needed to redeploy these batteries in energy storage or other lower-demand uses.

Recyclers also benefit from precise material data, allowing them to recover valuable resources more efficiently.

Unlocking New Business Models

As battery data becomes more consistent and accessible, new commercial opportunities emerge.

Leasing, subscription and Battery-as-a-Service models depend on accurate condition monitoring and predictable end-of-life value. The same applies to performance-based warranties and insurance products.

Second-life and resale markets also become more transparent, making it easier for buyers and sellers to assess value fairly. Aggregated data can feed into product development, system optimisation and wider market insights.

In this way, the passport creates value through information, not just regulatory compliance.

Improving Safety and Operations

Battery safety is an increasing concern across transport, energy storage and logistics. The Digital Battery Passport helps improve safety by ensuring important risk information remains attached to the battery.

Records of damage, abnormal degradation or safety incidents can be flagged to those handling or transporting batteries. This supports safer practices for logistics providers, warehouse operators and emergency services.

Maintenance teams benefit from clearer visibility of performance trends, enabling planned maintenance rather than reactive repairs. This reduces downtime and operational risk.

Implementation Will Take Time and Coordination

While the benefits are clear, putting the passport into practice will require careful planning.

Manufacturers must gather and share data across complex supply chains with multiple partners, often spread across different countries. Existing IT systems may need to be upgraded to support secure and standardised data exchange.

Standards are still evolving, so organisations need to balance early action with long-term interoperability. Cybersecurity and data governance also need close attention.

Internal coordination is equally important. Compliance, engineering, IT, procurement and commercial teams will need to work together more closely than ever.

Preparing for 2027 and the Future

February 2027 may feel a long way off, but developing the required systems and processes will take time. Companies that wait too long risk higher costs, rushed delivery and missed opportunities.

Those that act early can turn compliance into a strategic advantage. They will be better placed to demonstrate sustainability, manage risk and meet rising customer expectations around transparency.

The Digital Battery Passport represents a fundamental change in how value is defined and managed in the battery industry. Organisations that understand this shift now — and respond accordingly — will be better prepared for the next phase of battery manufacturing and deployment in Europe.