EU’s new battery directive puts into action certain mandates on collection, repurpose, recycling and reuse of batteries in the EU. This new directive is linked to the European Green Deal, Circular Economy Action Plan (CEAP), and the new Industrial Strategy for Europe. From an automotive lens, it intends to enable an effective and efficient circular economy for EV batteries, thus reducing the overall environmental impact of End-of-Life EV batteries. At the same time, it is likely to create a secondary market which will supplement the supply of EV batteries and reduce import dependency of battery raw materials in Europe.
It’s not just lack of standardization of materials and battery pack design that restricts battery recycle and reuse, battery manufacturing processes should also incorporate renewable energy and process efficiencies.
EMA Automotive and ESG Head,
What specific challenges are automakers and battery manufacturers facing when to comes to enabling circular economy for EV batteries? What tools and strategies they can adopt to empower the rapid adoption of sustainable EV batteries? How can automakers explore new circular economy business models (CBMs) and improve collaboration with other players? Where can they initially begin by leveraging frameworks like Circular Transition Indicators (CTI)?
Automotive OEMs should acquire or collaborate with companies providing circular economy solutions and battery manufacturers. Standardization in terms of battery type, circularity by design and EoL/ End-of-Use information will be key here to the smooth implementation of new CBMs that accommodate the uptake of EVs.
Partner and Global Circular Economy Lead,,
KPMG in the Netherlands
In this brief study, KPMG professionals intend to answer all the above questions and many more.
"Sustainable batteries" is one of the themes that we have identified as pivotal in shaping the future of global and the European automotive industry – from KPMG’s survey of global automakers and suppliers running in its 23rd year.
Uptick in EV battery market depends on a meaningful shift to a circular economy.
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This article was originally published on kpmg.com.
Partner, Sustainability Lead
KPMG in Luxembourg