VeChain: Digital passport on VET blockchain opens new trillion-$ market
Source: Akarat Phasura – Shutterstock
- The EU Parliament and the Council are closer to adopting the new battery law, which means that battery manufacturers may have to adopt blockchain technology.
- Meanwhile, this bill represents a good opportunity for VeChain as battery manufacturers can store the battery’s digital passport on the VET blockchain.
According to a tweet from Vechain technology enthusiast (@eisenreich), the EU is one step closer to adopting new rules for the design, production and disposal of batteries. According to the EU, these rules will help promote a sustainable economy.
The new battery law in the EU
On 9 December, the European Parliament (EP) and the European Council (EC) reached a preliminary agreement on the “new battery law”. It is the first law that provides “green” prerequisites for the entire product life cycle for batteries. At the same time, the Battery Act aims to create a circular economy with an evaluation process for all stages of battery production, from design to disposal.
Achille Variati, the EP’s mayor, applauded the bill, saying it would benefit the economy and the environment. Variati stated that batteries would work well, be safer and be easy to remove.
“Our main goal is to create a robust EU recycling sector for mainly lithium and a strong industrial sector. It will be important for Europe’s energy transition and autonomy in the years to come. These measures could even become a global benchmark for the world battery market, the mayor added.
On December 29, @eisenreich, a researcher at VeChain, tweeted a picture of VeChain’s editorial on Twitter. The editorial contained critical aspects of the upcoming battery bill. According to the proposal, EV batteries, rechargeable industrial batteries and LMT batteries with a capacity above 2kWh must be supplied with a carbon footprint label and declaration.
VeChain Technology Editorial: ‘Is the Time for a Battery “Digital Passport” Coming?’ 🔋
“Based on VeChain technology, key battery life cycle data is stored on the blockchain, as well as the tracking of used batteries and their recycling and disposal.” ♻️#VeChain #EL cars #Tech pic.twitter.com/FGSrzmrS7p
— eisenreich (@eisenreich) 29 December 2022
The measure contained a “minimum recycling rate” for light vehicle, portable and other types of batteries. Furthermore, the bill stipulated that battery manufacturers must reuse a minimum amount of lead (85%), nickel (6%), cobalt (16%) and lithium (6%) obtained from consumer and manufacturing waste in new batteries. According to the EU, this will ensure the recycling of valuable materials back into the economy.
Another part of the bill called for introducing labels and information disclosure for batteries, requirements for QR codes and digital battery passports. The battery’s digital passport will contain information such as recyclable content, performance, product capacity and chemical composition.
A big opportunity for the VET blockchain
In addition, the new law states that the regulation will enter into force within 48 months. All EV batteries released on the market must also have a digital record and a battery passport. This passport will allow manufacturers and relevant authorities to track the carbon footprint of these batteries.
Meanwhile, this bill represents an excellent opportunity for VeChain. Battery manufacturers can store the battery’s digital passport on the VET blockchain. Battery manufacturers must adopt blockchain technology to track their carbon footprints.
According to reports, the EU plans to set a new threshold for the carbon footprint of battery manufacturers by 2027. A VeChain editorial reads, “using VeChain technology, manufacturers can store key data for a battery’s life cycle on the blockchain. In addition, the blockchain will allow the tracking, recycling and disposal of used batteries.”
In the meantime, the new battery law is a temporary agreement between the EP and the EC. However, both parties must approve the law before it formally enters into force. One thing is certain – both agencies have finalized the bill’s content. What remains now is its full implementation.
