Recirculate Discussion: “Beyond Traceability: Unlocking the Real Value of Battery Data with AI”

Author: James Snodgrass

A recent Recirculate panel discussion asked: “What can we expect from the wider adoption of Digital Battery Passports? How can AI enhance how we collect, manage, and communicate battery data across the entire lifecycle, including reuse and recycling?”

Experts from PwC Germany, Tata Elxsi, Fraunhofer Institute, and Minespider explored how AI and battery data can generate new value, particularly in secondary markets, in a discussion organised by Recirculate, a EU-funded project focused on enabling second and subsequent lives for EV batteries. The panel suggested that Battery Passports, combined with AI, are evolving into something much more powerful – a foundation for data-driven decision-making and the next generation of circular battery markets.

AI brings speed – but not value on its own

With the EU Battery Regulation soon to be in force and the requirement to provide each battery with a Digital Battery Passport from 2027, digital infrastructure in this field is maturing. As a result, the question is no longer whether battery data can be captured or shared. All experts agree that this shift is already underway, and regulation will further accelerate it. In the future, every battery will have a Digital Battery Passport.

“This transition can be compared to the introduction of barcodes 50–60 years ago. At the time, the idea of tracking every individual product seemed unrealistic and overly complex. Today, however, every product, no matter how small, carries a barcode. A similar transformation is expected with AI and product passports. Each product, including batteries, will carry detailed, accessible data that enables better tracking and decision-making,” said Husen Kapasi, enterprise blockchain lead, PwC Germany.

Battery passports and the use of AI in battery data management will accelerate this shift. Battery passports are often discussed primarily in the context of data collection. But with blockchain and AI, working with data becomes easier and more effective.

Anil Radhakrishnan, chief product officer, Tata Elxsi, said: “When data comes together in a trustworthy and verifiable way, it eliminates silos and creates a foundation for meaningful applications. This is where the real value is unlocked. A number of monetisable use cases are already emerging, including warranty planning, resale financing, residual value assessment, estimation of remaining useful life, and predictive maintenance scheduling.”

Nearly 10 years ago, Nathan Williams, founder & CEO of Minespider, spent hours working with data on a chemicals project. Today, Minespider has developed a proof of concept that combines AI agents with Digital Battery Passports to turn static battery data into actionable insights in just a few seconds. This approach enables AI to securely access verified Battery Passport data, estimate battery value and recommend second-life applications using embedded, trusted AI “skills.” It shows how Battery Passports can evolve from compliance tools into a secure infrastructure for automated decision-making and circular business models.

It is clear now that AI is exceptionally good at assembling code, data and analysis from well documented sources, but it needs good data and trusted context to generate value. The role of the Digital Passport is critical to ensure that AI can get the documentation it needs to act rationally on decisions for physical products.

Trust is still the missing enabler, according to Recirculate panel

A more fundamental challenge is emerging: how to increase transparency and ensure that battery data is trusted and reliable. The entire system depends on trust: who created the data, whether it is reliable and who is accountable for it. Without trusted data, neither AI nor circular business models can function effectively.

Husen Kapasi, said: “Once battery passports are implemented and integrated into vehicles, the immediate question from a consumer perspective is how this data can be used in practice. One of the most impactful applications is the ability to assess battery value. The ability to upload technical specifications and quality data and receive insights on battery health, remaining life and estimated price is a significant shift.”

Consumer trust is one of the key enablers of future market growth. As Kapasi pointed out, successful secondary markets already exist. For example, products such as Louis Vuitton bags can now be authenticated through Digital Product Passports, helping to address the issue of counterfeits. This approach has scaled quickly due to strong demand and a relatively controlled ecosystem. In the battery space, however, this level of trust has not yet been established.

“Consumers are hesitant to buy used electric vehicles because they do not know the condition of the battery or how long it will last. Once reliable information becomes available through battery passports, this uncertainty will decrease. As soon as trust is established, the secondary EV market is likely to grow, which will also accelerate the development of recycling and second-life markets,” Kapasi continued.

Trust is not only a concern for consumers, but for all players across the battery value chain.

Roberto Seyfert, mechanical engineer, research associate, Fraunhofer-Gesellschaft Institute for Machine Tools and Forming Technology IWU said: “The question of data ownership and liability becomes increasingly important as more value is unlocked through battery data. While the highest value is achieved when all relevant information is accessible, there are clear concerns – especially from the OEM perspective – around sharing sensitive data. At the early stages of a product’s lifecycle, companies are likely to restrict access to certain information. This raises the need for mechanisms that allow data to be securely managed, such as encryption and controlled access, where only specific, trusted actors can view or use certain parts of the data. This leads to a broader question of trust infrastructure. It becomes critical to define which actors in the value chain can be considered trustworthy and under what conditions. For example, in a future circular ecosystem, a recycler or scrapyard would need to be verified as a trusted entity before being allowed to access or act on battery data. Ultimately, the system depends on balancing data accessibility with security and trust, ensuring that information can be used to unlock value while maintaining control and accountability.”

Anil Radhakrishnan agreed: “Even if the data itself is trustworthy, there is a growing challenge around the trustworthiness of the agents that operate on that data. This makes it essential to establish clear guardrails to ensure data privacy is protected and misuse is prevented.”

He added that trust must extend beyond actors to the technologies themselves: “Data only creates value when it is actively used and exchanged. Agentic AI can play a key role in enabling this flow by defining rules and guardrails for how data is accessed and shared between systems. However, building trust between agents and establishing these frameworks will require ongoing discussion and development across the ecosystem.”

From data infrastructure to value creation

Experts agree that at this stage, technology helps address pressing challenges more efficiently, even in emerging areas such as second-life EV battery reuse and recycling. On the one hand, technologies for data collection are already in place; on the other, blockchain and encryption enable safer data exchange between stakeholders, ensuring access to more structured and trustworthy data.

Technology has already unlocked use cases such as resale pricing, warranty optimisation, dynamic insurance, predictive maintenance, and new circular revenue streams.

One example of AI application in second-life batteries is the robotic repair and dismantling of battery systems. With a growing volume of structured data being integrated into battery passports, AI agents can support decisions on how a specific battery should be dismantled. A pilot robotic system has already been developed within the RECIRCULATE project by Centria University of Applied Sciences. This opens the possibility of developing mobile robotic systems capable of safely unlocking battery packs and removing modules. The main benefits include increased productivity, improved safety, and more consistent process control based on data-driven insights.

Anil Radhakrishnan said: “Another emerging use case is hyper-personalized insurance and warranty planning. With access to high-quality, dynamic battery data—such as state of energy, remaining useful life, and temperature history—insurers and OEMs can assess how a battery has been used. This enables more accurate risk evaluation, such as determining whether a battery has been well maintained or exposed to stress and allows for more tailored insurance premiums or warranty extensions.”

At the same time, experts highlight an important point: although the technology exists, the industry is still far from using it to its full potential. Anil added: “At this stage, the main bottleneck is no longer the development of technology, but the ability to define and implement valuable use cases. The tools already exist — the challenge is to identify where and how they can be applied to unlock value.”

According to Roberto Seyfert, one potential application of AI is agent-based transactions: “Today, second-life business models capture only a single layer of value from components at the end of their life. The key question is whether additional value streams can be introduced to make these models more effective. One potential approach is to integrate financial mechanisms, such as deposits or dedicated funding assigned at the beginning of a product’s lifecycle. AI agents could then use these funds to enable more efficient transactions and interactions within the ecosystem. This could lead to a more dynamic and scalable second-life market, where agents transact with each other and unlock additional value beyond the physical component itself”.

Nathan Williams added that the full potential of AI is still far from being realised in circular business models: “The key limitation is the lack of clearly defined use cases and the creativity required to apply these technologies in ways that unlock real value.”

The technology is in place. The challenge now is how to apply it effectively to maximise its value. Battery passports are evolving beyond compliance into a foundation for new forms of value creation across the battery lifecycle. AI is accelerating how data is collected and used, opening up a growing range of applications. At the same time, trust and data quality remain central to how these systems develop. As the ecosystem matures, the focus is gradually shifting toward how this potential can be realised in practice.