EU's Battery Passport: Trade Barrier or New Opportunity for Korean Players?

The European Union (EU) is set to change the competitive landscape of the European battery market with its battery passport regulation. Experts and industry officials say Korean manufacturers could gain an advantage over their Chinese rivals, who have weaker supply chain transparency. From February 18, 2027, batteries sold in the EU will be required to contain detailed digital information, including the battery's identity, technical specifications, performance, durability, sustainability, and recycling data. The EU's battery passport policy aims to increase transparency throughout the entire lifecycle of the battery. This regulation comes at a critical time for Korean battery companies, which have been rapidly losing market share in the global electric vehicle (EV) battery market due to fast-rising Chinese manufacturers. According to recent data from SNE Research, battery usage for EVs, plug-in hybrid electric vehicles, and hybrid vehicles outside of China reached 269 gigawatt-hours (GWh) in the first half of this year, a 26.3% increase from the same period last year.