Battery Passport Market

Battery Passport Market Outlook (2025 to 2035)

The global battery passport market is expected to reach USD 734 million by 2035, up from USD 74 million in 2024. During the forecast period from 2025 to 2035, the industry is projected to expand at a CAGR of 23.2%.

A battery passport is a digital record that stores comprehensive information about a battery’s entire lifecycle, including its identification, technical specifications, performance data, carbon footprint data, and safety and compliance. It enables full traceability across the value chain and supports circular economy goals. This promotes industry-wide standardization, efficient maintenance, repair and disposal processes.

Over the next ten years, the industry is poised to grow 8.1X with an absolute dollar opportunity of USD 643 million. This growth trajectory underscores a favorable outlook for the market, highlighting substantial potential for investment and development.

Metric	Value
Industry Size (2025E)	USD 91 million
Industry Value (2035F)	USD 734 million
CAGR (2025 to 2035)	23.2%

What are the drivers of the Battery Passport market?

The global push for sustainability and a circular economy is propelling the battery passport business. As investors seek greater visibility into product lifecycles, this identity system provides verified insights into ethical sourcing, recycled materials, and environmental impact, thereby driving the battery passport industry growth.

Governments worldwide, with support from initiatives like the EU Green Deal and the Inflation Reduction Act in the USA, as well as other global climate efforts, are streamlining EPR regulations and providing financial incentives, grants, and R&D support for battery traceability technologies. For instance, the European Union's Battery Regulation (2023/1542) requires EV, LMT, and industrial batteries (>2kWh) to have Battery Passports from February 2027. The regulatory requirement is driving manufacturers and suppliers to implement digital traceability systems, thereby increasing demand for battery passports.

Technological readiness is amplifying these trends. Innovations in blockchain enable secure serialization of individual battery units, while cloud-native platforms and SaaS solutions reduce implementation costs. AI-driven lifecycle modeling and predictive analytics further enhance the utility of passport data, turning compliance tools into operational insights. As smart factories and digital twins become industry norms, battery passports can be embedded directly into production systems, streamlining deployment at scale.

What are the regional trends of the Battery Passport market?

North America is advancing in the battery passport industry, with significant support from new policies such as the Inflation Reduction Act. The focus on a clean energy transition, coupled with investments in electric vehicle (EV) and battery manufacturing, is driving demand for traceability solutions. The USA is in the lead due to its strong network, ready regulations and robust R&D system for advancing and adopting battery passport principles.

Europe is the frontrunner in the global battery passport market, driven by the implementation of the EU Battery Regulation (2023/1542) under the broader European Green Deal. Countries such as Germany, France, and the Netherlands are accelerating the adoption of battery passports for electric vehicles (EVs), light mobility vehicles (LMTs), and industrial batteries. The growth of the market across this region is driven by tough compliance standards, environmental duties, and the groundbreaking use of circular economy approaches.

The Asia-Pacific region is witnessing rapid growth, fueled by massive electric vehicle (EV) production, government-led battery traceability mandates, and a strong base of battery manufacturers. China, South Korea, and Japan are leading the region in implementing smart battery labeling systems, blockchain-based tracking technologies, and meeting international export requirements. The rising collaboration between OEMs and digital solution providers is further accelerating the market.

Middle East & Africa is in the early stages of adopting battery passport frameworks, with gradual developments tied to national sustainability agendas and e-mobility programs. The UAE and Saudi Arabia are investing in green infrastructure and energy storage projects, providing an opening for future battery traceability integration.

Latin America, led by Brazil and Chile, is gradually integrating battery passport technologies as part of lithium mining traceability and the development of the electric vehicle (EV) ecosystem. Government support for green mobility and growing international partnerships are encouraging early-stage deployments, especially in countries involved in battery mineral exports.

What are the challenges and restraining factors of the Battery Passport market?

One of the most pressing challenges is the absence of a unified global standard for what constitutes a battery passport. While the EU has created rules according to Regulation 2023/1542, some nations are creating their own standards, and others have none. This regulatory fragmentation risks creating non-interoperable systems, increasing complexity for multinational battery producers and slowing down adoption.

Intellectual property protection poses another major obstacle. Battery passports require traceability down to the mine-site level, but sensitive information, such as cathode compositions, supplier contracts, and performance formulas in batteries, is highly confidential. While zero-knowledge proof technologies offer secure options, legal teams are often unfamiliar with them, leading to extended project timelines.

Talent scarcity further complicates scaling. The market requires professionals who possess interdisciplinary expertise across battery chemistry, blockchain systems, and industrial cybersecurity. Without strategic intervention such as standardized training programs, academic partnerships, and public funding, the talent bottleneck may constrain capacity and delay time-to-market for new passport solutions.

In spite of these barriers, the battery passport sector is expected to improve owing to increased industry collaboration, incentives from authorities and the use of common data models.

Shifts in the Battery Passport Market from 2020 to 2024 and Future Trends 2025 to 2035

From 2020 to 2024, the battery passport market emerged from concept development into early-stage implementation. Activity was largely driven by original equipment manufacturers (OEMs) and sustainability-focused organizations seeking to increase transparency across the battery supply chain. Although efforts were voluntary and regulatory structures were still evolving, the period marked important groundwork for future adoption.

Data collection during this phase was limited, often restricted to pack-level identifiers and basic information about mineral sourcing. There were uncertainties about cost, standard options and scalability, so investment for EV start-ups remained subdued. Nonetheless, a growing consensus formed around the importance of traceability for sustainability reporting, compliance, and long-term circularity goals.

The introduction of the EU Battery Regulation in 2023 set new standards for future compliance, which inspired early digital traceability pilots. Even with early flaws in interoperability and depth, these projects showed how digital battery passports are promising. Given regulators’, investors’ and industry leaders’ increased awareness, the initial infrastructure was developed to make way for broader and necessary adoption in later years.

Market Shift	2020 to 2024
Regulatory Landscape	Fragmented and voluntary standards, led by early EU policy signals
Technological Advancements	Blockchain, cloud traceability, pack-level data capture
Industry-Specific Demand	Primarily focused on EVs and stationary storage
Sustainability & Circular Economy	Basic mineral tracing and early recycling initiatives
Production & Supply Chain	Manual data input, high integration costs, limited scope
Market Growth Drivers	ESG pressure, pilot programs, and early investor interest

Market Shift	2025 to 2035
Regulatory Landscape	Mandatory rules from EU, USA EPA, and China driving full compliance across markets
Technological Advancements	NFC chip integration, AI digital twins, and real-time lifecycle analytics at cell level
Industry-Specific Demand	Expansion to aviation, marine, grid services, and industrial applications
Sustainability & Circular Economy	Real-time carbon, chemistry, and capacity tracking, enabling closed-loop systems
Production & Supply Chain	SaaS platforms reduce costs, enabling automated secondary-market trading
Market Growth Drivers	Green financing, insurance modeling, and regulatory enforcement make passports indispensable

Future Outlook (2025 to 2035)

Between 2025 and 2035, the battery passport market will shift into a phase of mandated ubiquity. Regulatory frameworks such as Regulation 2023/1542 in the EU, emerging USA EPA guidelines, and China's circular economy directives will require comprehensive digital traceability across battery value chains. Compliance will become non-negotiable, making battery passports a foundational requirement for market participation.

Technological innovations will support this transition. SaaS platforms will deliver affordable integration, while chip-based identifiers will enable real-time data collection down to the cell level. AI-powered digital twins will track battery health and capacity, enabling the automation of resale and reuse decisions in the secondary market. This real-time visibility will become essential for securing green bonds and meeting investor expectations tied to ESG metrics.

By 2035, nearly every battery sold in major global markets will be digitally traceable. Recyclers will compete in digital auctions for end-of-life units with verified histories. Grid operators will reward batteries for documented discharge cycles. ISO-aligned APIs will streamline cross-border data access, while insurers and regulators embed passport data into pricing and compliance mechanisms. These developments will transform battery passports from a regulatory obligation into a strategic tool that enables innovation, reduces waste, and supports the global clean energy transition.

Country-Wise Insights

Countries	CAGR (2025 to 2035)
United States	21.6%
Germany	20.7%
China	22%

United States (USA)

The United States is advancing battery passport implementation as a direct response to policy-driven localization and sustainability initiatives. National legislation has created strong incentives for domestic battery production, requiring transparent sourcing and traceability for eligibility. Lifecycle tracking is gaining momentum as manufacturers seek to meet rising environmental, social, and governance (ESG) standards. Efforts from standardization bodies are laying the foundation for digital frameworks that support secure and interoperable passport systems.

The USA tech sector provides robust infrastructure for blockchain and data integration, helping scale these systems nationally. Moreover, growing consumer interest in product origin and battery sustainability is influencing purchasing behaviors and supply chain transparency. Across the transport and energy sectors, digital battery passports are being recognized as tools for compliance, accountability, and resource optimization. The USA market, supported by strong policy frameworks, advanced digital capabilities, and public awareness, is well-positioned to shape the future of traceable, circular battery ecosystems.

Germany

Germany is among the initial adopters of battery passports in Europe, driven by upcoming regional legislation that mandates full traceability of batteries by 2027. The country’s well-developed automotive and manufacturing sectors are integrating digital passport systems to align with EU sustainability and circular economy goals. Government-backed projects and cross-industry collaborations are working to establish common technical standards for data collection, sharing, and lifecycle tracking.

Investments in digital infrastructure are supporting the development of platforms that enable real-time monitoring and transparent battery management. Environmental regulations, including emission durability requirements, further reinforce the need for precise battery data throughout the product’s life. Circularity is very important for the nation and traceability helps improve results in recycling and reusing batteries. Due to good policymaking, industry cooperation and its digital readiness, Germany is a leading example in transparent and sustainable battery systems throughout Europe and the world.

China

China’s battery passport market is growing rapidly, aligning with the country’s leadership in battery production and exports. The national strategy emphasizes innovation, traceability, and compliance with international sustainability standards. Recent regulatory updates require detailed monitoring of battery components and safety data, reinforcing the role of digital passports in manufacturing and export readiness. Lifecycle emissions reduction and digital supply chain tracking are crucial to China's green development goals, and battery passports play a key role in supporting this transition.

Public institutions are investing in technologies to enhance the digital oversight of battery data, ensuring alignment with both domestic goals and foreign regulatory requirements. As battery technologies evolve, including new use cases such as swapping and reuse, traceability becomes increasingly crucial. China's emphasis on data-driven manufacturing and policy-backed digital integration makes it a strong proponent of passport adoption. This approach ensures that batteries produced locally are globally competitive and meet the growing expectations for ethical, safe, and circular production systems.

Category-Wise Analysis

Lithium-Ion Batteries - By Battery Type

Lithium-ion batteries have become the main type in the battery passport market because of how widely they are used in electric vehicles, grid storage and consumer electronics. Their high energy density, long cycle life, and decreasing production costs make them a preferred choice across multiple industries. European regulatory agencies are putting strong emphasis on the ethical sourcing of lithium and cobalt, which is driving the need for traceability. Battery passports keep records of the source of the materials, their carbon footprint and the life of the battery which help companies meet ESG goals.

Several suppliers in the automotive and energy storage sectors are utilizing these technologies to comply with regulations and earn the trust of their customers. Lithium-ion batteries will probably continue to dominate sustainable energy systems as more new technologies and recycling methods become available. Their continued expansion, supported by clean energy policies and electrification trends, ensures strong long-term demand for battery passport solutions.

Traceability - By Solution Type

The battery passport ecosystem is gaining strong traction by traceability which is crucial for both complying with rules and promoting a circular economy. It enables real-time tracking of battery components from mining and manufacturing to recycling and reuse. As focus on clear supply chains increases, especially for minerals and crucial materials involved in terrorism and violence, technology systems like blockchain and digital tagging are now being used to keep track of these products.

The EU’s Battery Regulation requires that battery information be traceable to promote sustainability and fair labor. Industries are leveraging traceability not only for compliance but also for strategic insights into product performance and carbon accounting. As awareness grows among consumers and investors, demand for traceability solutions is rising rapidly. This segment is expected to expand further as more countries adopt battery regulations and companies seek to differentiate themselves through verified ethical and environmental standards.

Automotive OEMs - By End User

Automotive OEMs are leading the adoption of battery passport technologies due to the rapid electrification of transport and regulatory mandates on battery traceability. Since electric vehicles play a key role in the global auto industry, companies must adhere to environmental standards and agree to material sourcing policies. With battery passports, OEMs have a digital way to manage battery parts, their lifecycle and the way they impact the environment.

Due to the EU Battery Regulation and similar EU rules, battery information must now be properly documented for all EVs. OEMs also benefit from battery passports by streamlining recycling efforts and improving logistics for end-of-life battery handling. As electric mobility expands across Asia and North America, automotive OEMs are expected to remain the dominant end-users of battery passport solutions.

Competitive Analysis

Key players in the battery passport industry include Circularise, Circulor, Minespider, RCS Global, IOTA, OPTEL GROUP, and Kezzler.

These companies are at the forefront of developing digital solutions to ensure traceability, transparency, and sustainability across the battery supply chain. The market is gaining traction due to regulatory initiatives such as the EU Battery Regulation, increased pressure for ethical sourcing, and rising consumer demand for verified environmental credentials.

Partnerships between companies and recyclers, miners and OEMs are helping products achieve important milestones and are being adopted by the market sooner. Companies are focusing on developing scalable digital passport technologies that document a battery's lifecycle, material origin, carbon footprint, and compliance status. Emphasis on partnerships with OEMs, mining companies, and recyclers is accelerating product maturity and market adoption.

Market Share Analysis by Company

Company Name	Estimated Market Share (%), 2024
Top 5 Players	~75-80%
Tier II Players	~10-15%
Other Players	~5-15%

Key Company Offerings and Activities

Company Name	Key Offerings/Activities
Circularise	Provides blockchain-based traceability for battery materials; emphasizes supply chain transparency and data confidentiality with zero-knowledge proofs.
Circulor	Offers end-to-end traceability solutions powered by AI and blockchain; focuses on ESG compliance and carbon tracking for battery supply chains.
Minespider	Specializes in decentralized tracking of raw materials using open-standard digital product passports; partners with mining and OEM sectors.
RCS Global	Supplies audit and digital traceability services; integrates physical and digital due diligence for battery and raw material supply chains.
IOTA	Develops decentralized digital passport infrastructure using Tangle DLT; targets secure, scalable data interoperability for smart mobility.
OPTEL GROUP	Offers intelligent supply chain platforms for traceability and performance analytics; focuses on end-to-end lifecycle visibility for battery ecosystems.
Kezzler	Delivers cloud-based digital identity solutions for batteries; utilizes serialization to enable real-time monitoring and anti-counterfeit measures.

Circularise

Circularise is leading the way with blockchain-enabled traceability, offering a digital passport system that protects sensitive supplier data while providing full visibility across the battery value chain. Their zero-knowledge proof technology enables secure, scalable data exchange. They are collaborating with automotive and chemical giants to pilot supply chain transparency tools aligned with the EU Battery Regulation.

Circulor

Circulor leads the way in traceability of materials like cobalt and lithium from mine to OEM through AI and blockchain. Circulor has a primary emphasis on ESG compliance and allows for carbon and material tracking in real-time to enforce ethical sourcing and sustainability. Circulor is scaling its solutions currently through engagements with EV producers and raw material producers.

Minespider

Minespider is known for its open-source digital product passports designed to trace battery minerals. Its system enables stakeholders to upload compliance and environmental data securely onto a blockchain, ensuring trust and traceability. Minespider is working with large battery and mining companies to support regulatory adherence and transparency in raw material sourcing.

RCS Global

RCS Global combines physical audits with digital platforms to offer a hybrid traceability approach. The firm conducts on-ground supplier verification and integrates digital reporting, helping battery manufacturers meet responsible sourcing mandates. RCS is increasingly focused on digitalizing their due diligence frameworks to align with evolving global regulations.

IOTA

IOTA provides a decentralized and feeless DLT infrastructure suitable for lightweight and scalable battery passport solutions. By utilizing its Tangle technology, IOTA enables the secure exchange of provenance and lifecycle data without traditional blockchain limitations. IOTA collaborates with EU-backed consortia to define interoperability standards for smart battery ecosystems.

Recent Development

• In October 2024, ChargeZone launched its Battery Passport System, a digital platform offering comprehensive lifecycle data for EV batteries. Built on Industrial IoT 5.0, it enhances transparency, supports recycling, and underpins a Battery-as-a-Service model for commercial EVs, aligning with India's circular economy and renewable energy goals.
• In June 2024, Volvo launched the world’s first EV battery passport, pioneering digital transparency for its EX90 SUV ahead of incoming EU regulations. The passport tracks battery materials, carbon footprint, and recycling data, reinforcing sustainability and supply chain accountability in electric vehicle manufacturing.

Fact.MR has provided detailed information about the price points of key manufacturers of Battery Passport Market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

The 2025 global battery passport market report by Fact.MR compiles insights from 13,200 stakeholders across 40 countries. Approximately 70% were direct market participants, including original equipment manufacturers (OEMs), electric vehicle (EV) battery producers, recyclers, and providers of digital compliance solutions. The remaining 30% consisted of industry experts, including lifecycle consultants, regulatory advisors, and sustainability analysts.

Data collected between June 2024 and May 2025 explores adoption trends, regulatory challenges, investment priorities, and systemic risks. Weighted by regional battery passport market size and respondent profiles, the findings are supported by an analysis of over 290 credible sources, ranging from scientific journals to regulatory documents.

Since 2018, Fact.MR has tracked digital traceability and circular economy shifts, positioning this report as a critical resource for stakeholders shaping the battery ecosystem.

Segmentation of Battery Passport Market

• By Battery Type :

  • Lithium-Ion Batteries
  • Lead-Acid Batteries
  • Sodium-Ion Batteries
  • Flow Batteries
  • Others (nickel-metal hydride (Ni-MH), nickel-cadmium (Ni-Cd), and solid-state batteries)

• By Solution Type :

  • Traceability
  • Digital Platforms
  • Auditing and Verification Services

• By End-User :

  • Battery Manufacturers
  • Automotive OEMs
  • Recyclers
  • Governments
  • Consumers

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa