New EU standards aim to establish a low-carbon battery industry through transparency & sustainability. A key component here is the introduction of battery passports, with mandatory first stages set to begin February 2025. Join us as we discuss battery passports, how industry players are grappling with compliance, & methods for carbon footprint calculations.
Contact: Betsy Barry
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betsy.barry@acculonenergy.com
The EU standards are focused on establishing a low-carbon battery industry, particularly for EVs, but also to include other commercial and industrial applications. These standards include new regulations on batteries and waste management, scheduled to be implemented from 2024 to 2028. This regulation includes the introduction of a battery passport, detailing the carbon footprint and recycled content. Ultimately, the aim is to eliminate high-carbon footprint batteries and encourage the use of low-carbon alternatives and the battery passport is an essential tool in helping to create transparency in the entire battery supply chain, which, in turn, creates a more comprehensive picture for evaluating carbon footprints.
Calculating the carbon footprint (CF) of lithium or sodium-ion batteries for industrial equipment entails several complexities that must be taken into consideration in the context of a battery passport. The global supply chain complexity alone with respect to lithium or sodium-ion batteries involves a lot of moving parts, including the extraction of raw materials, manufacturing of battery components, assembly, transportation, and end-of-life disposal or recycling. Each stage of the supply chain has associated energy consumption and emissions, making it challenging to gather comprehensive data.
Material Sourcing:
The extraction and processing of raw materials required for lithium or sodium-ion batteries, such as lithium, cobalt, nickel, and graphite, often involve energy-intensive processes with significant carbon emissions. Assessing the environmental impact of material extraction and sourcing requires detailed data on mining operations, transportation, and refining processes.
Manufacturing Processes:
The manufacturing of lithium or sodium-ion batteries involves complex processes that consume energy and may emit greenhouse gases. These processes include electrode fabrication, cell assembly, electrolyte production, and battery pack integration. Variations in manufacturing techniques, energy sources, and production efficiency can impact the carbon footprint of the batteries.
Transportation:
Lithium or sodium-ion batteries and their components are often transported across long distances during various stages of the supply chain, including raw material transportation, component shipping, and distribution of finished products. Calculating the emissions associated with transportation requires accurate data on distances traveled, transportation modes used, and fuel types.
Battery Lifespan and Usage:
The carbon footprint of lithium or sodium-ion batteries is influenced by factors such as battery lifespan, usage patterns, and charging methods. Assessing the environmental impact requires considering the energy consumed during battery charging, discharge cycles, and the duration of battery use in industrial equipment.
End-of-Life Management:
Proper disposal or recycling of lithium or sodium-ion batteries is essential to minimize environmental impact and maximize resource recovery. However, the processes involved in battery recycling, including collection, transportation, dismantling, and material recovery, also have associated energy consumption and emissions.
The battery passport requirement goes into effect in February of 2027, but mandatory carbon footprint declarations (passport precursors) from battery manufacturers go into effect in February 2025.
Given the complexities of global supply chains, this passport will help create a more detailed & accurate assessment of a battery’s environmental impact.
Continuous advancements in battery technology, manufacturing processes, and recycling methods can impact the carbon footprint of lithium or sodium-ion batteries over time. Keeping pace with technological developments and incorporating updated data and methodologies into carbon footprint calculations is essential for accuracy. However, future advancements are tempered by the need for valid and reliable methodologies of calculating CF today.
Addressing these complexities requires a multidisciplinary approach, involving collaboration between battery manufacturers, supply chain stakeholders, environmental researchers, and policymakers. Robust life cycle assessment methodologies, comprehensive data collection, and transparent reporting are crucial for accurately quantifying the carbon footprint of lithium or sodium-ion batteries used in industrial equipment.
One recent study revealed that the carbon footprint of manufacturing lithium-ion batteries with NMC chemistry can vary significantly—by up to three times—depending on the production pathways of the materials used. However, the current EU carbon accounting rules (Product Environmental Footprint methodology and Product Environmental Footprint Category rules) do not account for these variations in production pathways, indicating a need for revision to better differentiate carbon footprints.
The study also highlights a gap in the literature regarding the accurate carbon footprints of key battery materials (such as graphite, nickel, and lithium), often underestimating them. While some data has been gathered in collaboration with industry stakeholders, further research is essential, pointing out the need for increased participation across the industry to enhance understanding and accuracy in this area.
There is no one set methodology and different segments of the value chain are privileging different methodologies, but there are some standouts in these endeavors that could contribute to industry standards in CF calculation methodologies as the new EU battery passport rollout takes effect in the coming years. For example, new Chinese standards for estimating CF for lithium-ion cell manufacturing set strict energy consumption limits to improve efficiency and reduce environmental impact. The energy consumption is measured in kilograms of coal equivalent (kgce), providing a direct way to estimate the CO2 footprint of production. The limits are:
- Lithium battery production: ≤ 400 kgce per 10,000 Ah.
- Cathode material production: ≤ 1400 kgce per ton.
- Anode material production: ≤ 3000 kgce per ton.
- Separator production: ≤ 750 kgce per 10,000 m².
- Electrolyte production: ≤ 50 kgce per ton.
These metrics represent a good step forward in estimating and managing the carbon footprint of lithium-ion battery production, taking into consideration the materials of the component parts; however, as previously highlighted, valid and reliable CF calculating of the comprehensive battery development process is going to be something that everybody in the battery industry has to commit to.
In conclusion, the new EU standards for a low-carbon battery industry represent a significant step forward in reducing the environmental impact of battery production and use. The implementation of a battery passport will play a crucial role in providing transparency throughout the supply chain, enabling more accurate assessments of carbon footprints. While the complexities of global supply chains pose challenges in gathering the necessary data, these regulations are poised to drive the industry toward more sustainable practices and foster the adoption of low-carbon battery technologies across various sectors.