Japan and the European Union have agreed to collaborate on a scheme to share information about battery material production locations and the supply chain. The move will help the two parties track lithium and other minerals in batteries and prevent materials from outflowing from these regions. The information sharing will also reduce Japan and the EU's dependence on battery materials produced in China.
According to Nikkei and TV Tokyo, Japan's Information-technology Promotion Agency (IPA), under the Ministry of Economy, Trade and Industry, signed an MoU with the EU on April 22 to enable information sharing between the EV battery information management platforms the two sides have established, respectively.
The Japanese government is working on building the Ouranos Ecosystem, an industrial information platform. Over 50 Japan-based companies have joined the system, including Toyota, Nissan, Honda, Denso, and Prime Planet Energy & Solutions (PPES).
The EU has already built its battery information platform, Catena-X, with participation from the government, Volkswagen, Renault, and other enterprises.
The Ouranos Ecosystem and Catena-X will share their data in 2025. Confidential data, such as the list of battery material and component suppliers and the amount of procurement, is excluded.
The EU has regulated the recycling and reuse of battery materials like lithium and cobalt with the upcoming battery passport. Information in the passport, such as the carbon emissions created during battery production and the portion of various materials, will be retrieved from Japan's Ouranos Ecosystem and the EU's Catena-X. The scheme will be able to track battery material sources and where the material flows, preventing reused minerals from outflowing to other regions.
According to EU regulations, half of the minerals in a battery must be reused in 2027 and 80% in 2031. EV manufacturers, component suppliers, and battery material vendors will have to comply with this law.
The EU regulation will also mitigate risks resulting from geopolitical tension and reduce the bloc's reliance on China-made materials. China accounts for 65%, 76%, and 100% of the lithium, cobalt, and graphite processing markets. The country takes up 70% of graphite extraction worldwide.
China tightened graphite exports starting in 2023, alerting Japan and Europe. The two regions aim to diversify battery material sources and reduce reliance on China.
About 120 US and Japanese companies, including Honda, Nissan, Ford, and General Motors, have formed the Mobility Open Blockchain Initiative (MOBI) to develop international regulations for digitalized EV battery data management.
European companies have formed Gaia-X, an initiative to develop a federated secure data infrastructure that enables the sharing of materials and carbon emissions data. Gaia-X and MOBI will allow the data exchange of battery material, battery degradation, and more in Europe, the US, and Japan.
