The pioneering battery passport pilot carried out in Finland by SIX Mobile Work Machines cluster, IOXIO, Sandvik, Kalmar and Sitra showcased how lifecycle data can be connected to industrial batteries, machines and users with the help of a digital product passport.
The EU’s new battery regulation provides a comprehensive set of rules that are designed to protect the environment by reducing the number of hazardous materials found in batteries and increasing the recycling rate of batteries. The regulation also includes a requirement for a digital product passport (DPP) for batteries. From the 1st of February 2027 it will apply to all industrial or electric vehicle (EV) batteries manufactured in or imported into the EU market with a capacity of more than 2 kWh. The party placing the battery on the market is responsible for ensuring that all necessary information is stored in digital form and that the information is correct and up to date.
The challenge is that information can’t be shared between various stakeholders in the battery's life cycle and behind the DPP.Additionally, the Ecodesign for Sustainable Products Regulation (ESPR) entered into force in July. It is an ambitious EU initiative to make environmentally sustainable products the norm in the EU and boost Europe’s resource independence. ESPR also includes a requirement of a digital product passport containing publicly available sustainability information.
Digital Product Passport in action
The main goal of the pilot was to evaluate the implementation of the DPP for electric mobile work machines and their batteries in a real-world setting, specifically in mining and port environments. Kalmar’s and Sandvik’s goal was to test how the DPPs and industrial data sharing can combine the battery manufacturing data with the machine operational data along the battery’s life cycle.
Providing battery and machine as-built and operational data to customers in global ports and mines is key to improving the more sustainable EV machine operations and maintenance in the first life use. New business can also arise from giving access to battery health data for third parties evaluating second life use and recycling possibilities. In the development of future business opportunities, it is also interesting to validate information needs with the bank to enable sustainable financing of machines and new battery-as-a-service business models.
The development of the competitive advantage also creates capabilities to meet the requirements of future sustainability and data sharing regulations. IOXIO's aim in the pilot was to test the industrial data sharing service, which enables to connect product data into the DPP easily, scalably and reliably from the company's own value chain, utilizing open and existing industrial standards.
The key achievement of the pilot was that it demonstrated the potential to create interconnected value among stakeholders in the use of individual batteries and machines. Specifically, DPPs facilitated the sharing of maintenance, repair needs, and reordering data between stakeholders. For instance, by accessing real time data on battery health and machine wear and tear through DPPs, companies could dynamically schedule needed machine maintenance, efficiently manage part replacements and create real-time reordering processes for spare parts.
This not only optimises machine uptime but also improves the overall efficiency of operations, demonstrating the utility of the DPP in facilitating comprehensive and actionable data exchange. Moreover, the DPP proved to be instrumental in delivering sustainability data, including Scope 3 emissions data. This outcome was achieved by scanning QR codes on batteries and machinery, enabling data sharing of data on machinery in the entire value chain in alignment with the EU’s new battery regulation.
The pilot also showcased the use of battery condition data, demonstrating the ability of the DPP to incorporate dynamic operational data from machinery in accordance with the EU Data Act. Miika Kaski, Commercialization and Networks Lead, Sandvik Mining and Construction Oy says that DPP`s can unlock new unseen values and capabilities to different players along life cycle.
“Extracting data from the value and supply chains of our batteries benefits both suppliers and customers, driving sustainability and innovation in mining”, says Kaski.
Pekka Yli-Paunu, Research Director, Kalmar Finland Oy comments that Kalmar machines play a critical role in global logistic chains and corridors.
“Our customers and suppliers can get big benefits with our data, and we can optimize the fleet operations in many novel and innovative ways based on battery data”, Yli-Paunu comments.
The pilot encouraged participating companies to start investing in the capabilities required to implement the DPP. The pilot also helped to open new circular business models, particularly in the second life use of batteries.
Further plans for the pilot
Deadlines and transition periods of DPPs for different products are expected to be specified in delegated acts post adoption of the ESPR during its implementation, which is expected to run at least between 2024 and 2030. For the partners, the pilot underlined that the DPP can create value for companies and that the time to act is now, driven by both the coming regulation and the new value and business opportunities.
The partners will continue the work to develop the possibilities of sharing industrial data and a follow-up is planned for the completed pilot. To hear more about the pilot and further plans, sign up for the pilot's public results webinar. The webinar will be held on November 27th at 8:30-9:30
Final report of the pilot:
Partners involved: The SIX Mobile Work Machines consortium members, VTT (project lead), IOXIO (technical lead), Sandvik (case company), Kalmar (case company) and Sitra (funding partner).
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