The European Union’s battery passport regulation is expected to reshape competition in Europe’s battery market when it takes effect on Feb. 18, 2027, according to industry officials and experts. Under the new rule, batteries sold in the European market will need to carry detailed digital information covering identity, technical characteristics, performance, durability, sustainability and recycling-related data. The goal is to improve transparency across the full battery life cycle, from production and use to reuse and recycling.
The policy comes as Korean battery makers face increasing pressure in the global electric vehicle battery market amid the rapid growth of Chinese suppliers. Data from SNE Research shows that battery usage for electric vehicles, plug-in hybrid vehicles and hybrid vehicles outside China reached 269 gigawatt-hours in the first half of this year, up 26.3 percent from a year earlier. Over the same period, the combined usage of LG Energy Solution, SK On and Samsung SDI fell 6.3 percent to 74.3 GWh, and their combined market share dropped to 27.6 percent from 37.2 percent. By contrast, CATL increased usage 41.7 percent to 90.5 GWh, while BYD posted a 67.9 percent increase to 28.2 GWh.
Industry observers said the battery passport is not a tariff, but it could raise the bar for companies with complex or less transparent supply chains because manufacturers will need reliable documentation on a battery’s origin, production and environmental footprint. Chinese suppliers could face added pressure if they have difficulty providing the required data.
Korean battery makers may benefit from their established manufacturing presence in Europe. LG Energy Solution operates a plant in Poland, while Samsung SDI has run an EV battery facility in Hungary since 2018 after completing the plant in 2017. SK On is also operating major battery production facilities in Hungary. CATL has expanded in Europe as well, with serial production in Germany since 2022 and new projects underway in Hungary and Spain.
For Korean companies, the new system could strengthen their position in higher-value segments if European automakers place more weight on traceability, environmental data and supply-chain transparency. Industry officials said the broader impact may be strategic rather than immediate, with the passport serving as both a compliance test and an opportunity to showcase manufacturing quality and consistency.
Source: The Korea Times
