IN SUMMARY
Battery demand is set to climb from around 1 TWh in 2023 to nearly 7 TWh by 2030, and with it comes scrutiny of the environmental footprint of every stage in the value chain. The EU Battery Regulation, in force since August 2023, makes carbon footprint declarations, due diligence and the battery passport mandatory in phased stages, starting with EVs. In this joint paper, Minviro and Worley argue that meeting these requirements is not just about measuring impact after the fact. The real opportunity is to design lower-impact batteries from project inception, and to be able to prove it.
Materials are the footprint. As manufacturing electricity decarbonises, the impact of producing and processing battery materials does not fall at the same rate, and by mid-century could account for over half of an entire vehicle’s footprint. Anode and cathode materials are the biggest contributors and the biggest opportunity.
Compliance is now mandatory and phased. The EU Battery Regulation requires carbon footprint declarations, due diligence, traceability and a digital battery passport, with EV batteries regulated first from February 2025.
Design beats retrofit. Identifying environmental hotspots through LCA at the pre-feasibility stage allows them to be designed out cheaply. Discovering them after an investment decision or once a facility is operational can lock producers into high-impact products.
Why battery materials are the real footprint challenge
Electric vehicles deliver a climate advantage over internal combustion engines over their lifetime, but their footprint is still significant, driven by the material- and energy-intensive processes in battery supply chains. As clean energy and manufacturing efficiency improve, the EV footprint will fall, but the contribution from producing and processing battery materials does not improve at the same rate. By the middle of the century, materials could account for more than half of a vehicle’s footprint. Anode and cathode active materials are the highest contributors to a battery pack’s impact, which also makes them the greatest opportunity for reduction through careful choices of processing technology, material origin and facility location. As Minviro’s earlier NMC-811 analysis showed, choosing low-impact materials can cut a pack’s footprint substantially.
What the EU Battery Regulation requires
The EU Battery Regulation applies to every battery placed on the EU market, regardless of country of origin, and reaches across the whole supply chain rather than just final assembly. Its core requirements include minimum recycled content targets for cobalt, lead, lithium and nickel; mandatory due diligence reporting on environmental and social impacts; traceability across each life cycle stage; labelling and reporting for transparency; and a digital battery passport recording the battery’s performance and sustainability data. The provisions arrive in phases, with EV batteries first and a carbon footprint declaration required before a battery passport. For anyone in the value chain, the practical questions are whether you understand your product’s footprint against alternatives, whether you have chosen a low-impact route, whether you can prove it, and whether you can improve it.