As the world collectively moves toward clean energy, two key aspects for successfully unlocking global energy transition have become hot topics of conversation at every level – electric vehicle (EV) conversion and battery sustainability.
Against this backdrop, the Global Battery Alliance (GBA) launched the proof of concept for its Battery Passport and unveiled prototypes at the World Economic Forum’s Annual Meeting in Davos. As a member of the GBA, LG Energy Solution (LGES) supported this milestone by participating in the pilot project with Tesla to test the system out and marked itself as a sustainability pioneer.
The Battery Passport will assume a crucial role in sustainability across the battery value chain to meet the targets set out by the Paris Agreement signed in 2015. As EU will make Battery Passport a mandatory requirement by 2026, which will likely encourage other regions to follow suit, the launch of GBA’s Battery Passport bears importance in forming a globally harmonized framework.
As a battery supply chain consultative platform, with LGES being one of its board of directors, GBA became the first organization to conceptualize the Battery Passport three years ago, as well as the first to devise a prototype. The importance of this achievement cannot be understated, since a Battery Passport could soon prove crucial to establishing sustainable battery value chains in such a rapidly growing industry, providing valuable information on sustainability and lifecycle requirements which will introduce much-needed transparency to the industry.
The GBA’s Battery Passport is unique in that it facilitates the collection of standardized, auditable, and comparable data on a battery’s lifecycle. By simply scanning the battery’s QR code, customers can learn everything they need to know about greenhouse gas emissions during material sourcing, processing and manufacturing as well as any child labor and human rights violations. Also, it has competitive edge in that the organization collaborates with multi-stakeholders including governments, international organizations and NGOs to establish a rigorous and standardized framework.
Through its participation in the pilot project, LGES successfully demonstrated its commitment to ESG (Environmental, Social and Governance) vision which deems that batteries are closely linked to a more sustainable, greener future for all. As one of its earliest members, LGES worked closely with other GBA members across the entire battery value chain to solidify strategic partnership. LGES will actively work with GBA to develop various rules and mechanisms to further enhance the Battery Passport and setting industry standards.
“Committed to creating a sustainable battery ecosystem and paving the ‘Sustainable Way’ forward, LG Energy Solution welcomes more opportunities to leverage the convening power of the Global Battery Alliance,” said Bangsoo Lee, Chief Risk Officer of LGES. As he said, LGES, which is not only leading the industry with its cutting-edge technology but also constantly demonstrating its ESG performance, will continue to contribute to greener battery value chains that promote a sustainable global transition to EVs.