Volvo to issue world's first EV battery passport ahead of EU rules
By Nick Carey
LONDON, June 4 (Reuters) -Volvo Cars is launching the world's first EV battery passport recording the origins of raw materials, components, recycled content and carbon footprint for its flagship EX90 SUV, which is about to start production, the Swedish automaker told Reuters.
The passport was developed by Volvo VOLCARb.ST, which is owned by China's Geely GEELY.UL, in partnership with UK startup Circulor, which uses blockchain technology to map supply chains for companies, and took over five years to develop.
Battery passports will be mandatory for electric vehicles (EVs) sold in the European Union from February 2027 showing the composition of batteries, including the origin of key materials, their carbon footprint and recycled content.
Volvo's head of global sustainability Vanessa Butani told Reuters that introducing the passport nearly three years before regulations kick in was aimed at being transparent with car buyers as the automaker targets producing only fully-electric cars by 2030.
"It's really important for us to be a pioneer and a leader," Butani said.
The EX90 SUV with a battery passport is due to start production soon at Volvo's plant in Charleston, South Carolina, and will be delivered to customers in Europe and North America from the second half of the year.
Volvo owners can access a simplified version of the passport using a QR code on the inside of the driver's door.
Butani said the passport would be gradually rolled out to all of Volvo's EVs.
A more complete version of the passport will be passed to regulators.
It will also include up-to-date information on the EV battery's state of health - vital for assessing used EV values - for 15 years and will Volvo cost around $10 per car, Circulor CEO Douglas Johnson-Poensgen told Reuters.
Circulor's system traces battery materials from the mine to individual cars, piggybacking on suppliers' production systems to track materials throughout the supply chain and checking suppliers' monthly energy bills - and how much of their energy comes from renewable sources in order to calculate a total carbon footprint.
If Volvo brings on board a supplier, Circulor will need to audit it to keep information current, Johnson-Poensgen said.
The passport has also required changes in how Volvo traces parts through its manufacturing process to understand the origins of every part in every vehicle.
"Car manufacturing has never been about which rock went into which component and which got connected to which car," Johnson-Poensgen said. "It's taken a long time to figure that out."
While there is no such mandate in the United States, automakers are showing interest there because they may need to prove they qualify for EV subsidies under the U.S. Inflation Reduction Act, Johnson-Poensgen said.
Volvo has invested in Circulor, as has Jaguar Land Rover and BHP BHP.AX, the world's largest listed miner.
Johnson-Poensgen said there was a rush among automakers to create battery passports, and that even if they started now many may find it hard to meet the EU's 2027 deadline.
Reporting by Nick Carey
Editing by Mark Potter
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
