Automotive Cells Co (ACC), a joint venture involving Stellantis, TotalEnergies, and Mercedes-Benz Group, has joined forces with UK startup Circulor to enhance transparency in the provenance and carbon emissions of raw materials used for electric vehicle (EV) battery cells. The partnership aims to ensure sustainable and responsible supply chains, providing customers with valuable insights.

Background

ACC, established in 2020, has unveiled plans for EV battery plants across Europe, backed by a substantial EUR 7 billion investment. With plants in France, Germany, and Italy, ACC is gearing up for mass production in its French facility. Circulor, known for using blockchain to map green supply chains, already collaborates with major companies like Volvo Cars, BMW, and BHP.

The push for a “battery passport”

The collaboration aligns with the European auto industry’s preparation for a “battery passport” that will trace the content and carbon footprint of EV cells sold in the region. Starting this year, batteries sold in Europe must disclose their carbon footprint, with further regulations requiring compliance with a CO2 emissions limit and disclosure of recycled raw material content by 2027. Circulor is actively involved in the battery passport project.

Sustainable differentiation and industry challenges

European battery manufacturers face the challenge of differentiating themselves from Chinese competitors, who operate at larger scales and offer lower prices. Demonstrating greener products with lower CO2 emissions and increased recycled content is crucial for European companies. The partnership with Circulor allows ACC to uphold sustainability standards throughout its supply chains, providing a competitive edge.

Future impact and industry response

Circulor’s CEO, Douglas Johnson-Poensgen, highlights ongoing discussions with companies across the EV battery cell supply chain. As the industry faces increased scrutiny with the introduction of battery passport regulations, companies will need to prioritize responsible sourcing and lower carbon footprints. This move towards transparency is seen as a pivotal step in ensuring sustainable practices and fostering environmental responsibility in the EV sector.