As stipulated by the EU Battery and Waste Batteries Regulation, the digital battery passport system is set to be enforced on February 18, 2027. Chinese manufacturers exporting lithium batteries to the EU will be confronted with rigorous ESG (Environmental, Social, and Governance) compliance standards. These standards have been broadened to encompass the upstream segments of the lithium battery industry chain, necessitating ESG data collection and supply chain due diligence, to name a few.

In response, relevant manufacturers are gearing up for these new market regulations by instituting data collection systems and fostering supplier compliance enhancements. However, the industry at large is grappling with common challenges, including striking a balance between compliance standards and supply chain resilience, establishing solid data governance frameworks, and safeguarding data security.