Battery recycling is one of the central pillars towards the transition to a sustainable, circular energy economy. As the demand for electric vehicles and energy storage grows rapidly, the industry faces mounting pressure to improve how batteries are recycled.
Many of the materials in modern batteries, such as lithium, cobalt and nickel, are expensive, energy-intensive to extract, and concentrated in a few global supply chains. Capturing as much value as possible from used batteries is critical for both environmental protection and strategic necessity for Europe’s long-term industrial competitiveness.
Despite all the technological progress, battery recycling remains complex. One of the most persistent barriers is the lack of reliable, standardised information about the batteries entering recycling facilities. Digital Battery Passports, when supported by precise and verified data tagging, can be a practical solution to this challenge. By providing recyclers with accurate battery information before physical processing begins, they enable safer operations, faster throughput and higher material recovery rates.
The Existing Challenges of Battery Recycling
Recycling modern batteries effectively remains technically complex and economically challenging. Lithium-ion batteries vary widely in chemistry, cell format, module design and manufacturing processes. Without reliable information on these factors, recyclers are often forced to treat batteries as unknown feedstock, slowing down the dismantling process, increasing safety risk, and reducing material recovery rates.
In many cases, recyclers lack information on residual charge, degradation history or internal damage. This uncertainty leads to more manual inspection and cautious handling. Valuable materials could be lost simply because the recycling process could not be adapted to the specific battery chemistry and condition.
The EU Battery Regulation (EU) 2023/1542 responds to these challenges by introducing recovery efficiency and recycled materials such as cobalt, nickel, and lithium. By 2030, for example, recyclers will need to meet high recovery efficiency thresholds for these materials. Meeting these targets requires not just better recycling technologies but also better information on what is being recycled, why, and how.
How Precise DBP Data Tagging Improves Recycling Efficiency
Digital Battery Passports provide structured, standardised information on a battery’s lifecycle. When data tagging is precise and consistent, each battery arrives at the recycling stage with verified information on its chemistry, material composition, architecture, safety parameters, dismantling guidelines, and usage history.
Such detailed tagging transforms the recycling process from a reactive task into a data-driven operation. Accurate chemistry data helps sorting and pre-treatment teams to separate batteries into homogeneous groups quickly, reducing pre-treatment time and improving process predictability. Facilities can apply the most suitable recycling pathway from the outset, rather than relying on generic treatment approaches.
Precise dismantling instructions and safety data also reduce risk during disassembly. Batteries with unknown residual charge or hidden damage pose significant risks during processing. When a DBP includes detailed usage and safety data, recyclers can tailor handling protocols to the specific condition of each battery, reducing fire risks and accidents.
Material composition tagging also improves recovery rates. When recyclers know exactly which cathode and anode materials they are processing, they can select the most effective recycling technique. Studies and pilot activities have shown that chemistry-aware recycling can significantly improve recovery rates for cobalt and nickel compared with processing mixed or unidentified battery streams. Higher recovery yields make recycling more economically viable and reduce the need for mining virgin materials.
Closing Information Gaps that Slow Recycling
One of the main reasons the current battery recycling processes remain inefficient is the lack of complete lifecycle information. Batteries often reach end-of-life facilities without reliable records of how they were used, how they aged, or even what materials they contain. This requires recyclers to rely on sampling and testing, which is time-consuming, costly, and sometimes hazardous. Digital Battery Passports, when tagged accurately with essential details, address this issue by creating a single, continuously updated source of truth.
Under the EU Battery Regulation, passport data must be accurate, interoperable and kept up to date as the battery is repaired, reused, repurposed or prepared for recycling. This regulatory requirement reinforces the importance of high-quality data tagging and governance throughout the battery lifecycle.
Beyond operational benefits, this transparency supports regulatory compliance and reporting. Recycling performance, recovery rates and material flows can be documented and verified more easily, supporting audits and market surveillance activities.
Broader Benefits for Circular Economy and Sustainability
Precise data tagging in DBPs helps recyclers to recover higher-purity secondary materials with confidence. Secondary materials of known provenance and composition are more attractive to manufacturers trying to meet recycled content requirements or reduce supply risk.
At a strategic level, DBPs help close the loop between end-of-life management and new production cycles, reducing waste, lowering carbon footprints and decreasing dependence on raw material imports.
This transparency also feeds into environmental, social and governance (ESG) reporting. Companies can use verified recycling and recovery data to demonstrate progress against sustainability targets, increasing investor confidence and supporting corporate reporting under frameworks such as the Corporate Sustainability Reporting Directive (CSRD).
How BASE Connects Precise DPP Data Tagging with Higher Recycling Efficiency
At the BASE project, we are developing and validating a Digital Battery Passport framework designed to support real-world recycling and circularity outcomes. Our approach prioritises accurate, lifecycle-wide data tagging that includes battery chemistry, material breakdowns, safety status, state-of-health history and handling guidance.
Through pilot deployments, BASE demonstrates how making this information available to authorised stakeholders before physical processing begins can reduce handling time, improve sorting accuracy, enhance safety and increase material recovery yields.
By focusing on interoperability, data verification and secure access, BASE ensures that Digital Battery Passports are not only compliant with EU regulation, but also operationally valuable for recyclers.
Our work shows how data can act as an enabler of efficiency rather than an administrative burden, helping translate Europe’s recycling ambitions into practical, scalable solutions.
Closing Thoughts
As battery usage continues to rise, efficient recycling will become a defining factor in the sustainability of Europe’s energy transition. Precise data tagging within Digital Battery Passports is a key enabler of this efficiency, as it supports safer operations, higher recovery rates and stronger circular value chains.
As mandatory battery passports come into force, the ability to capture, manage and share accurate battery data will increasingly determine the success of recycling systems across Europe. Through initiatives like BASE, Digital Battery Passports are evolving from a regulatory requirement into a cornerstone of a resilient and circular battery economy.
References:
EU Battery Regulation (EU) 2023/1542 - EUR-Lex official text: https://eur-lex.europa.eu/eli/reg/2023/1542/eng
Fraunhofer IPK - Circular economy: A digital EU product passport for batteries: https://www.fraunhofer.de/en/press/research-news/2024/april-2024/circular-economy-a-digital-eu-product-passport-for-batteries.html
BASE Project - How Digital Battery Passports help meet EU recycling targets: https://base-batterypassport.com/blog/regulations-4/how-digital-battery-passports-help-meet-eu-recycling-targets-43
BASE Project - Closing the circularity loop through Digital Battery Passports:
BASE Project - What is a Digital Battery Passport? A Closer Look Inside: https://base-batterypassport.com/blog/sustainability-6/what-is-a-digital-battery-passport-a-closer-look-inside-23