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| EU battery passport |
EU Battery Passport Drives Compliance and Digital Traceability
Chinese battery producers have begun preparing for the EU battery passport, effective February 2027. This system mandates digital traceability for EV and industrial batteries over 2kWh. Meanwhile, companies must record environmental compliance, supply chain origin, and CE marking to enter the EU market.
Industry Challenges and Strategic Responses
The new regulation increases compliance pressure and short-term costs for Chinese battery firms. Therefore, Sunwoda established a project team to ensure European operations remain uninterrupted. In contrast, upstream supply chain processes contribute up to 80% of total battery carbon footprints, requiring coordinated action.
Market Implications and Circular Economy Opportunities
Chinese exports to Europe reached 1.05mn t in 2024, 35% of total battery shipments. As a result, firms like CATL and BYD accelerate green standards and carbon footprint methodologies. Consequently, recycled materials and life-cycle assessments are becoming critical for competitiveness and sustainable growth.
ScrapInsight Commentary
EU battery passport regulations will reshape Chinese battery exports by 2027, enforcing stricter compliance and supply chain transparency. Recycled materials and carbon footprint management will drive competitive advantage and support the circular economy in energy storage and EV batteries.
