This is the first short explainer video in Minespider’s series about the battery supply chain, technologies, and regulations.
In this video, we talk about the significance of EVs and batteries for the economy, the first regulations focused on batteries and EV market, proposed requirements to OEMs, battery manufacturers, and critical minerals producers.
Furthermore, we examine some crucial regulations that are being implemented globally in the battery industry, such as the EU Battery Regulation, the Inflation Reduction Act in the US, and China's NEV Battery Recycling Mandate, and some future trends.
Our videos aim to keep you updated on the latest advancements in battery industry regulation and technology and enable you to comprehend the changes you can initiate now to be fully compliant and prepared for the future. Remember to follow our YouTube channel for updates and watch out for our upcoming episode that delves deeper into the EU Battery Regulation and the Inflation Reduction Act.
Why do countries introduce battery supply chain-related regulations?
COVID and related lockdowns, transportation restrictions, border closures, and geopolitical conflicts negatively affected distributed supply chains showing that one country cannot fully rely on others in supply. This is especially important for critical industries like energy and transportation.
Electric vehicles and batteries are important for the country's economy for several reasons.
First of all, the adoption of EVs powered by batteries can help reduce a country's dependence on imported oil. This can help improve energy security and lower the risk of price fluctuations, which can have a significant impact on the economy.
Secondly, EVs produce fewer emissions than conventional gasoline vehicles, which helps in reducing air pollution and addressing climate change. Besides, as the industry is booming, it creates opportunities for new jobs in related fields and helps increase economic growth.
You see how important the EV industry is.
Regulation is one of the tools that can help bring batteries and EV cars production to the country's borders and ensure future development of the industry, the movement towards clean energy, and overall energy independence. That’s why we see increased attention from the governments to the battery industry regulation.
Why are these regulations important?
EV and battery market regulation is a complex issue as the market has strong correlations with regulatory frameworks for:
1) metals and mining
2) sustainable production that excludes risks for the environment, human rights, etc.
3) country’s environmental and energy policies, in particular, focused on carbon and GHG emissions, materials recycling, and reuse.
Besides, the battery supply chain is diverse and complex with raw materials coming from different countries. For example, lithium may come from either South America, Argentina, or Chile, while graphite, which is the dominant anode material, is predominantly produced in China. Regulation should take into account all these aspects.
What regulations are important in the worldwide battery industry?
Battery regulation is discussed in the top EV-producing regions, including the US, the EU, and Asian countries, including China, Japan, and South Korea.
In 2020 the EU Commission proposed a comprehensive policy that covers the entire battery life cycle, from design to end-of-life, and applies to all types of batteries sold in the EU. The regulation requires all battery supply chain participants to meet strict due diligence requirements as well as to have a specific system and battery passports in place.
In the US, Biden's administration introduced the Inflation Reduction Act (IRA) which aims to incentivize domestic EV production by providing demand-side tax incentives.
China issued important laws focused on battery recycling, for example, NEV Battery Recycling Mandate that requires manufacturers of new-energy vehicles (NEVs) and others to set up and standardize recycling plants for electric vehicle batteries.
What companies are affected and how?
Companies involved in the production and supply chain of EV batteries, as well as raw materials producers should be concerned since some regulations do require having provenance data and some other key data about the raw materials contained in the EV battery.
What changes will these regulations bring to the companies involved in the battery production process?
An obvious trend is building transparent EV battery supply chains for the green energy future. To make it possible, upstream and downstream companies will be required to set up information systems and implement technologies to ensure they can safely exchange key data about the battery.
Our explanation videos are designed specifically for you to find out what changes you can make today to be fully compliant and ready for the future. Check out our next episodes and learn more about regulations, requirements, and technologies!