LG Energy Solution Joins 2nd Wave of GBA Battery Passport Pilots
LG Energy Solution joins Global Battery Alliance’s second Battery Passport Pilots, advancing towards EU compliance and setting new sustainability standards in the EV industry.
LG Energy Solution recently announced its participation in the second wave of Battery Passport Pilots organized by the Global Battery Alliance (GBA). This initiative is a crucial step in preparing for the European Union's Battery Regulation, which will mandate Battery Passport (BP) compliance starting in February 2027. LG Energy Solution is leading one of the consortia in this phase alongside other major global battery manufacturers.
GBA launches second wave of battery passport pilots
This phase builds on the initial proof of concept from January 2023, which involved major players like Audi, Tesla, and Contemporary Amperex Technology Limited (CATL). The new wave includes 11 pilot consortia featuring global battery manufacturers such as CATL, LG Energy Solution, Samsung SDI, and others, collectively representing over 80% of the global electric vehicle (EV) battery market share.
According to the announcement, the pilot participants will provide feedback on seven rulebooks created by multistakeholder working groups organized by the GBA. These rulebooks outline unified sustainability performance standards for seven essential metrics issuing differentiated ESG scores. They include the previously tested Greenhouse Gas rulebook for calculating battery carbon footprints, as well as indices for human rights and child labor. Additionally, new rulebooks have been developed addressing Forced Labour, Indigenous Peoples’ Rights, Biodiversity, and Circular Design of batteries.
The initiative is designed to harmonize sustainability performance metrics and integrate requirements from existing regulations and voluntary standards. Inga Petersen, Executive Director of the GBA stated, “The launch of the world’s first battery passport proof of concept in January 2023 afforded us invaluable insights and learnings which we are actively applying in this next phase. Seeing the incredible level of interest and engagement by battery manufacturers, their value chains from mining companies to electric vehicle manufacturers and independent solution providers across the 11 pilot consortia gives us great confidence in the potential for international, pre-competitive collaboration and our ability to create trusted sustainability scores for batteries as an essential instrument to establish sustainable, responsible and circular battery value chains by 2030.”
As the battery industry is expected to grow 17-fold by 2030, the GBA emphasizes the need for sustainable practices from the outset. The results of the second wave of pilots are expected to be published by the end of the year on the GBA website.
LG Energy Solution’s commitment
The ongoing pilot projects will also introduce data assurance and verification elements to ensure the reliability of shared information. By participating in these BP pilots, LG Energy Solution is not only aligning with global sustainability goals but also helping to set new standards for a more transparent and sustainable battery industry.
Initiatives like the Battery Passport, the importance of navigating Environmental, Social, and Governance (ESG) challenges becomes increasingly apparent. The introduction of standardized ESG metrics and transparent reporting through the Battery Passport aims to address these challenges, offering a framework for evaluating and enhancing sustainability across the supply chain. As LG Energy Solution and other industry leaders embrace this transformative approach, the focus on continuous improvement and rigorous ESG compliance will be critical. Successfully navigating these ESG challenges is not only essential for fostering a responsible and sustainable battery ecosystem but also for meeting the growing demand for transparency and accountability in the electric vehicle sector.
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