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LG Energy Solution Rides the Second Wave of Battery Passport Pilots Towards a Sustainable Value Chain

  • LG Energy Solution joins the second wave of Battery Passport Pilots as a long-standing member of the Global Battery Alliance.
  • LG Energy Solution is establishing and enhancing internal systems to comply with various battery-related regulations.

In preparation for the Battery Passport system taking effect in February 2027 under the European Union Battery Regulation, LG Energy Solution is participating in the second wave of Battery Passport (BP) pilots organized by the Global Battery Alliance (GBA).

This project is in its second phase following successful first pilots led by Audi and Tesla and participated by LG Energy Solution between October and December 2022, with the official results announced at the World Economic Forum (WEF) the following January. As an experienced member of the GBA, LG Energy Solution is leading one of the consortia in the second pilots alongside global battery manufacturers which represent over 80% of the global EV battery market.

Aligned with COP28[1]’s global pledge to triple the world’s renewable energy capacity by 2030, the battery industry is expected to grow 17-fold by the end of the decade. With sustainability becoming a critical focus from the outset in this rapidly growing industry, sustainable battery value chains create equitable renewable transitions within the sector. Given rising geo-strategic competition, the GBA BP pilots emphasize the importance of international collaboration before engaging in competition with other suppliers for developing a sustainable battery supply chain at scale.

The BP, a digital system that manages various information such as battery performance, material sourcing countries, recycling rates, and production history across the supply chain, is one of the GBA’s key initiatives. The GBA first proposed this concept at the 2020 WEF, which was so well-received that it was subsequently endorsed in the EU Battery Regulation. Since then, the GBA has been working with like-minded members and various stakeholders to develop a comprehensive and efficient indicator framework.

The GBA has a unique proposition as the world’s largest multi-stakeholder organization – with members from not only the private sector, but also governments, NGOs, academia and international organizations. LG Energy Solution, committed to building a sustainable battery ecosystem, actively engages in the flagship program of the GBA.

The GBA aims to create a scoring system for investors, procurement divisions, and consumers in its mission to foster a competitive platform where products compete based on their independently verified sustainability performances. Importantly, this approach promotes continuous improvement and a race towards the highest sustainability standards.

The BP Pilots Wave 2 project, composed of battery manufacturers from 11 consortia, expands the GBA’s BP data management framework and Environmental Social and Governance (ESG) data collection methodology.

The second wave of pilots seeks to realize a sustainable, circular and responsible battery value chain, expanding the scope of the proof of concept from 2023. Participants including LG Energy Solution will use seven rulebooks crafted by multi-stakeholder groups under the GBA, defining unified sustainability standards across critical areas such as greenhouse gas emissions, human rights, child labor, forced labor, indigenous rights, biodiversity, and battery circular design.

The GBA’s global platform facilitates global-scale pre-competition collaboration to better align standards and solutions across borders and create the most trusted sustainability scores for batteries. Notably, ongoing pilot initiatives will incorporate data assurance elements to ensure the most reliable information is exchanged, and the current wave of pilot projects will introduce data verification elements to secure information sharing.

LG Energy Solution is establishing internal processes and actively enhancing systems to comply with various global regulations, including the EU Battery Regulation. Furthermore, it will continue to build partnerships with leading innovators and expand collaborations with stakeholders such as OEMs operating within the battery value chain.

[1] COP 28 refers to the United Nations Climate Change Conference taking place in Dubai, United Arab Emirates, from 30 November until 12 December 2023