Battery manufacturing company Automotive Cells Co (ACC) and UK startup Circulor announced a partnership to verify the green credentials of raw materials that ACC uses to manufacture electric vehicle (EV) battery cells.
Under the agreement, Circulor will verify the place of origin and embedded carbon emissions of the raw materials in ACC's supply chain.
The partnership comes about as the European auto industry readies for a "battery passport", an identification system that will allow authorities to trace the content and carbon footprint of EV cells sold across Europe as part of a continent-wide tracking mandate. Starting this year, European batteries will have to disclose their carbon footprint. Coming years will require additional compliance such as a CO2 emissions limit and disclosure of recycled raw materials contained inside.
In a statement, Olivier Talabard, ACC supply chain director, said: "Our partnership with Circulor is key to knowing our supply chains are operating as they should - sustainably and responsibly - and that we're passing this value on to our customers."
Circulor CEO Douglas Johnson-Poensgen commented: "Right now, we're witnessing an arms race for enough raw materials and at the moment nobody has to declare where they got stuff or what the carbon footprint is. As soon as we switch this light on with the battery passport regulations, all of a sudden folks will start worrying about sourcing responsibly."
Circulor, which relies on blockchain technology to map supply chains for companies seeking to 'green' their manufacturing, already works with a number of European car companies including Sweden's Volvo and Germany's BMW, as well as Australian mining giant BHP Group.
Johnson-Poensgen said Circulor, which is also a part of the battery passport project, was holding talks with companies up and down the EV battery cell supply chain to offer its services.
ACC, launched in 2020, is a joint venture between Euro-American automotive group Stellantis (owner of marques such as Fiat, Chrysler and Citroen), French oil major TotalEnergies and Germany's Mercedes-Benz Group.
The company has announced €7 billion of investments in EV battery plants across its members' home states of France, Germany and Italy. The French plant should start mass production soon.