The battery passport market is projected to reach USD 2.35 billion by 2035, from USD 0.15 billion in 2025, with a CAGR of 32.1%. The battery passport is emerging as a compliance and intelligence framework that redefines competitiveness across the battery and mobility value chain. For battery manufacturers, it institutionalizes traceability and responsible sourcing, strengthening compliance with EU mandates while enabling data-driven differentiation. EV manufacturers are integrating passport data into product lifecycle management to enhance transparency, supply assurance, and ESG-linked investor confidence. Battery recyclers gain operational precision through verified material composition data, improving recovery yields and cost efficiency. On the operational front, energy storage system integrators, utilities, and fleet operators are leveraging passport-enabled insights for asset optimization, predictive maintenance, and residual value management.
By industry, the energy & utility segment is expected to be the second-fastest-growing, primarily driven by the rapid deployment of utility-scale energy storage systems supporting renewable integration and grid stability. As energy transition initiatives accelerate, utility and grid operators are adopting digital battery passports to ensure end-to-end lifecycle traceability, covering parameters such as state-of-health, operational efficiency, and recycling compliance. The integration of IoT-based monitoring systems and blockchain-enabled verification frameworks allows stakeholders to maintain verifiable data on asset utilization and environmental performance. For instance, in July 2024, a leading European utility deployed a passport-linked monitoring stack across its grid-scale storage sites, integrating real-time health analytics and automated compliance reporting to enhance audit readiness and unlock green bond eligibility. Additionally, compliance with ESG disclosure norms, taxonomy alignment, and circular economy objectives has made traceability a prerequisite for project financing and regulatory approval.
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Battery passports create new business avenues by enabling traceability-as-a-service, compliance automation, and authenticated lifecycle data platforms for OEMs, suppliers, and recyclers. They unlock secondary markets for second-life batteries and verified material recovery, supported by digital identifiers that validate provenance and CO₂ intensity. Data-rich passports also expand opportunities in predictive analytics, risk intelligence, and digital engineering tools for design optimization. This shifts revenue toward integrated software, verification services, and circular economy marketplaces built on trusted, battery-level datasets.
The Asia Pacific region holds a strategic position in the global battery passport market due to its dominance in battery manufacturing and rapid policy alignment. China’s Battery ID system, launched in 2023 by the Ministry of Industry and Information Technology (MIIT), mandates digital traceability across production, performance, and recycling, functioning as a national equivalent to the EU battery passport. This framework strengthens supply chain transparency and material accountability. Japan and South Korea are also implementing passport-ready systems to meet the EU and US compliance requirements for exporting batteries, while India and ASEAN countries are advancing traceability through EV and ESS localization programs. With control over more than 80% of the global battery supply chain, Asia Pacific’s integration of digital lifecycle systems ensures interoperability across international markets. The region also hosts several key players advancing the implementation of battery passports. China’s Sunwoda and Farasis Energy lead with blockchain and QR-based traceability systems aligned to global standards, while India’s Tata Technologies introduced WATTSync, a blockchain-enabled digital passport for EV and ESS value chains. These providers collectively solidify Asia Pacific’s transition toward interoperable, lifecycle-based battery data systems across manufacturing and recycling networks.
For battery passport providers and manufacturers, there are strong opportunities to build digital systems that ensure battery traceability and compliance with new global regulations. Using blockchain, IoT sensors, and AI-based analytics can improve transparency and monitor battery performance throughout its lifecycle. Subscription-based services for carbon tracking, material sourcing, and health monitoring can add new income streams. As industries move toward sustainability and circular economy goals, battery passports are becoming essential tools for enhancing efficiency, promoting accountability, and gaining a competitive advantage.
Key Players
The battery passport market is dominated by established players, including Minespider GmbH (Germany), AVL (Austria), Siemens (Germany), Circulor (UK), and Optel Group (Canada), among others. These companies manufacture and develop new connectors. They have also set up R&D facilities and offer best-in-class products to their customers.
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