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- The European Parliament and Council are close to enacting a new battery law. This means battery manufacturers may have to adopt blockchain technology.
- On the other hand, the bill represents a good opportunity for VeChain as it allows battery manufacturers to store the digital passport of their batteries on the VET blockchain.
According to a tweet by a Vechain tech enthusiast (@eisenreich), the European Union is one step closer to enacting new regulations on the design, manufacture and disposal of batteries. According to the EU, these rules will help promote a sustainable economy.
EU new battery law
On December 9th, the European Parliament (EP) and the European Council (EC) reached a provisional agreement on a “new battery law”. This is the first law to issue a “green” prerequisite for the entire battery product lifecycle. The Battery Act, on the other hand, aims to create a circular economy with an evaluation process for all stages of battery production from design to disposal.
EP rapporteur Achille Variati praised the bill, saying it would benefit the economy and the environment. Variati said the battery works better, is safer, and is easier to remove.
“Our main aim is to create a strong EU recycling sector and a strong industrial sector, mainly for lithium. This will be important for the energy transition and autonomy of Europe in the coming years. measures could even become a global benchmark for the global battery market,” the reporter added.
On December 29, VeChain researcher @eisenreich tweeted an editorial photo of VeChain on Twitter. The editorial included key aspects of the upcoming battery bill. According to the proposal, EV batteries, rechargeable industrial batteries and LMT batteries with a capacity greater than 2 kWh must have a carbon footprint label and declaration.
VeChain Technology Editorial: “Will the Age of Battery ‘Digital Passports’ Come? 🔋
“Based on VeChain technology, critical data of the battery lifecycle will be stored on the blockchain to track used batteries and their recycling and disposal.” ♻️#VeChain #EV #Tech pic.twitter.com/FGSrzmrS7p
— Eisenreich (@eisenreich) December 29, 2022
The measures included “minimum recovery rate reuse” for light vehicles, portables, and other types of batteries. Additionally, the bill requires battery manufacturers to recycle lead (85%), nickel (6%), cobalt (16%), and lithium (6%) from consumer and manufacturing waste in new batteries. It stipulates that there is According to the EU, this will ensure that valuable materials are recycled into the economy.
Separate sections of the bill called for battery labeling and disclosure, QR code requirements, and the introduction of a digital passport for batteries. A battery’s digital passport includes information on recyclable content, performance, product capacity, chemical composition, and more.
A Big Opportunity for VET Blockchain
Additionally, the new law stipulates that the regulation will come into force within 48 months. Additionally, all EV batteries released to the market must have a digital record and battery passport. This passport allows manufacturers and relevant authorities to track the carbon footprint of these batteries.
On the other hand, the bill presents a great opportunity for VeChain. A battery manufacturer can store a battery’s digital passport on her VET blockchain. Battery manufacturers should adopt blockchain technology to track their carbon footprint.
According to reports, the EU plans to set a new carbon footprint threshold for battery manufacturers by 2027. Blockchain also makes it possible to track, recycle and dispose of used batteries. ”
The new Battery Act, on the other hand, is a temporary agreement between the EP and the EC. However, both parties must approve the law before it officially takes effect. One thing is for sure, both agencies have finalized the content of the bill. All that’s left now is its full implementation.