Why the EU’s Digital Battery Passport Will Change the Future of Manufacturing

Table of Contents

Starting February 18, 2027, the European Union will officially require Digital Battery Passports (DBPs) for all industrial and electric vehicle batteries larger than 2 kWh sold in its market. This isn’t just a bureaucratic update—it’s the beginning of a major transformation in how products are tracked, valued, and improved across industries.

Gone are the days when batteries were just silent components powering vehicles or machines. With Digital Product Passports (DPPs), these batteries become intelligent assets, carrying real-time data about raw material origins, carbon footprints, and performance. By 2030, DPPs will extend beyond batteries to include textiles, electronics, and more.

A New Era of Competitive Advantage

While many business leaders see DPPs as just another compliance hurdle, forward-thinking companies are treating them as a golden opportunity. The smartest operators are tapping into what’s being called a new “competitive battleground”—where product intelligence is currency and transparency can drive revenue.

As GS1 UK’s research suggests, businesses could lose up to £1.5 million per year due to gaps in compliance and lost opportunities. The message is clear: those who ignore DPPs might be leaving serious money on the table, while those who move early could unlock long-term strategic value.

Suppliers Hold the Key

Because modern products often rely on a global network of suppliers, the role of those suppliers becomes central in enabling end-to-end traceability. By actively participating in DPP initiatives, suppliers can boost trust with manufacturers, stand out in a crowded market, and even monetize their data contributions.

Major automotive players are already leaning into this shift. Porsche, for example, is using blockchain to document every material flowing through its supply chain. Audi, through its MaterialLoop project with Circularise, is exploring how transparency leads to circular economies. Volvo, too, is leveraging blockchain for cobalt tracking in its electric models.

These companies aren’t just ticking regulatory boxes. They’re building business strategies that future-proof their operations while positioning themselves as leaders in transparency and sustainability.

The Power of Deep Product Intelligence

Imagine knowing exactly where a lithium cell originated, how it performed during a snowy commute in Norway, and when it was finally recycled in Spain—all from one digital passport. That’s the promise of DPPs.

With detailed insights across the entire product lifecycle, businesses can go far beyond compliance. They gain actionable intelligence on supply chain performance, customer use patterns, and even design flaws. This data helps them cut costs, predict failures, and design better products faster.

DPPs are essentially turning passive products into learning machines—tracking, analyzing, and improving over time.

Six Stages to Maturity: Where Do You Stand?

Cognizant’s framework breaks down the journey to full DPP integration into six distinct stages:

1. Strategic Awakening – Start with awareness and initial assessments.

2. Strategic Readiness – Begin engaging suppliers and choose your tech stack.

3. Pilot Implementation – Test DPPs on select product lines.

4. Enterprise Integration Prep – Get ready to scale across the full supply chain.

5. Market Deployment – Launch your system to the world.

6. Innovation & Circularity – Unlock the real value through insights and redesign.

Most companies are stuck at Stage 3, but those pushing toward full integration are uncovering value in surprising places—from uncovering waste to enabling predictive maintenance and optimizing logistics.

The Tools Are Already Here

We’re not talking about sci-fi. The technology needed for intelligent DPPs already exists. Internet of Things (IoT) sensors are widely used in factories and products, collecting real-time data on performance and conditions. Blockchain ensures this data remains tamper-proof, while cloud platforms crunch the numbers into business-ready insights.

Together, these tools can build next-gen passports that adapt and learn. Imagine machine learning algorithms tweaking maintenance schedules, or feeding design insights directly into R&D cycles. That’s not just efficient—it’s revolutionary.

Beyond Compliance: Strategic Value That Compounds

Companies that approach DPPs strategically won’t just avoid fines. They’ll create entirely new revenue streams. This means more than just good data—it requires governance, audit systems, strong partnerships, and new business models built on transparency.

For example, Amazon reports that robust DPP use can cut operational costs by up to 15%. That’s not just regulatory ROI—that’s operational reinvention.

What’s more, as talent and tech providers align with early adopters, those lagging behind may find fewer strategic options available and higher costs down the road.

Time Is Ticking: Act Before You're Forced To React

The companies moving now are building momentum that will be hard to catch up with. They’re forming key tech partnerships, attracting data-savvy talent, and capturing early insights that shape future strategy.

On the flip side, those who delay will face a narrower path. Their competitiveness will depend on suppliers or rivals who already control valuable product intelligence.

In essence, two paths are forming: those chasing minimum compliance, and those reshaping the industry through strategic data usage. Only one of those paths leads to long-term growth, agility, and influence.

The February 2027 deadline may seem far away, but the real race has already started—and the most strategic players are already lapping the field. Will you be among them, or still finding your shoes?