BMW & BASF: Automating the Battery Value Chain

BASF, BMW, CATL, Henkel and Siemens are among a group of companies that have launched a digital product passport (DPP) system. Named Path.Era, the system is a digital battery passport (DBP) that collects data regarding a battery and its lifecycle.

The system aims to streamline the sharing of information for all stakeholders across the value chain of battery products. With new European Union (EU) regulations coming in 2027 for digital product passports, manufacturers in a variety of industries will have to increase visibility for product lifecycles.

The digital product passport is a structured, digital record that provides lifecycle data for each product in a standardised format. It contains essential data such as material composition, carbon footprint, repairability and end-of-life instructions which are often accessed via a QR code.

This is a new EU requirement that will become mandatory starting in 2027 for priority product groups with full rollout expected by 2030. Sectors that will be affected include batteries, textiles, tyres, furniture, chemicals and energy-related products.

Improving battery supply chains

Digital battery passports are a subset of digital product passports that capture full lifecycle and recycling data for individual batteries. They act as a sustainability reporting and certification scheme for procurement teams and supply chain leaders.

According to the Global Battery Alliance, they are underpinned by indicators that allow data on facility-level sustainability performance in the battery supply chain to be gathered, verified and compared.

In 2027, new regulations will make these passports mandatory for all new electric vehicle batteries in the EU.

EU regulations and the mandatory passport requirements mean carmakers who produce EV batteries must improve supply chain visibility. They must also improve lifecycle and recycling data for critical minerals such as lithium, nickel and cobalt.

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Addressing industry emission challenges

According to McKinsey, battery manufacturers may find new opportunities in recycling as the market matures. Companies could create a closed-loop, domestic supply chain that involves the collection, recycling, reuse or repair of used lithium-ion batteries.

The recycling industry alone could create a US$6bn profit pool by 2040. According to McKinsey, producing the large lithium-ion batteries used to power EVs serves as the biggest source of embedded emissions for both electric cars and trucks.

This accounts for about 40 to 60% of total production emissions. As pressure to decarbonise increases, and as demand for EVs picks up globally, manufacturers are racing to address this emissions challenge.

Recycling of EV batteries is also a labour intensive process that if done improperly could cause significant harm to local communities and workers. With more intensive recording and accountability, schemes like the digital battery passport may help solve some of these critical issues.

Data availability and transparency are fundamental requirements to ensure that the battery industry achieves its growth and environmental, social and governance targets.

Collaboration boosts data exchange

The Path.Era battery passport addresses challenges in managing battery data across the value chain. It does this by streamlining the sharing of information across stakeholders promoting circularity and sustainability.

Path.Era aims to ensure secure and standardised data exchange and reduce manual processes while meeting legal requirements.

Oliver Ganser, Vice President Digitalisation of the Purchasing and Supplier Network at the BMW Group, says: “To collect the relevant data points for a battery pass, we will support our relevant value chain partners with a simple and trusted solution to get the job done.

“Path.Era and Catena-X are the perfect match to get the job done.”

Path.Era was announced in 2025 as a scalable ecosystem for digital battery passports based on Catena-X, a collaborative data ecosystem for the automotive industry. The platform is designed to enable traceability and circularity across the battery value chain.

Matthias Dohrn, President of Global Procurement at BASF, says: “Path.Era is our solution to bring transparency into the entire battery value chain and to efficiently fulfil legal and reporting requirements.”

George Kazantis, Vice President of Automotive Components at Henkel, says: “The transparency we create for the battery industry with DBPs is just as relevant for other industries.

“For us, the Path.Era battery passport is the blueprint for the future of DPPs.”

Henkel is a German multinational chemical and consumer goods company that operates worldwide. Kazantis adds: “We are proud to be part of this initiative, as it aligns with our commitment to sustainability and innovation.”

Matthias Dohrn, President of Global Procurement at BASF, says: “Path.Era is our solution to bring transparency into the entire battery value chain and to efficiently fulfil legal and reporting requirements.”

George Kazantis, Vice President of Automotive Components at Henkel, says: “The transparency we create for the battery industry with DBPs is just as relevant for other industries.

“For us, the Path.Era battery passport is the blueprint for the future of DPPs.”

Henkel is a German multinational chemical and consumer goods company that operates worldwide. Kazantis adds: “We are proud to be part of this initiative, as it aligns with our commitment to sustainability and innovation.”