As the EU Battery Regulation moves from legislative text into market reality (Feb 2027), one of the most significant shifts is economic. Traceability, once treated as a compliance obligation, is now emerging as a primary enabler of residual value, second-life market growth, and smart recycling strategies.

Across the BASE project, several consortium partners are demonstrating that data standardisation, when applied to battery lifecycle events, unlocks not only operational transparency but also real commercial advantage. The Digital Battery Passport (DBP) sits at the centre of this shift - transforming batteries from opaque, depreciating assets into verified, tradeable energy units with certified histories.

The Rise of the Commercial Digital Twin

For years, used EV and industrial batteries have entered the aftermarket as little more than physical boxes with vague backstories. Without reliable information on usage, chemistry, safety incidents, or degradation, many batteries that could be safely reused were either heavily discounted or prematurely recycled.

This is changing. With the DBP framework, each battery now carries a structured data record: chemistry type, State of Health (SoH), performance profiles, safety checks, and traceable ownership history. As a result, batteries are becoming commercial digital twins - each capable of being graded, priced, and resold based on real-world performance rather than speculation.

One of our consortium partners, specialising in second-life repurposing, is collecting over 40 data points per module, automatically populating internal dashboards and sales documentation. These include unique IDs, SoH test results, temperature profiles, and disassembly logs, etc. Such datasets, when linked with the DBP, make batteries not just technically compliant - but commercially trustworthy.

Diagnostics and the Residual Value Equation

Beyond system integrators, diagnostic tool providers within the BASE project are also showcasing how traceability can directly shape resale pricing and residual value estimation. Their diagnostic tools produce verifiable SoC and SoH reports within minutes, which can be appended to the DBP or exported for platform-based resale.

Imagine a refurbished vehicle with a verified battery pack. If the pack consists of eight modules, each with an average SoH of 86%, the resale value of that battery system - backed by diagnostics - may rise to €3,200. Without trusted data, the value could drop to €2,400. In this scenario, a single verified battery health report represents an €800 uplift in residual value.

These insights are already supporting the development of new business models, such as subscription-based Diagnostics-as-a-Service platforms or compliance-ready tooling bundles for garages, fleets, and recyclers.

Benchmarking Lifetime, Even Offline

Some consortium partners are focused on algorithm development - specifically, how to estimate SoH, SoC, safety, and Remaining Useful Life (RUL) even in offline environments where data is not continuously transmitted.

Using cumulative indicators - like time spent in specific temperature bands or frequency of deep discharges - batteries can store compact, aggregated operational data directly within the Battery Management System (BMS). This allows for later retrieval and analysis, even if the battery was not connected to the cloud during operation.

Such cumulative tracking enables buyers to assess whether a battery has been treated conservatively or aggressively. That information, in turn, helps determine how much useful life may remain and whether the unit qualifies for second-life use.

Here is how this plays out in practice:

Both batteries are functional, but Battery A - due to its safer operational history - commands a premium. This kind of data-backed differentiation is central to building a reliable second-hand and second-life marketplace.

Smart Sorting and Recycling Value Uplift

Partners and companies working on the recycling end of the battery value chain are or will be equally benefiting from DBP-enabled data streams. By accessing upstream information on battery type, usage history, and safety incidents, recyclers can perform smarter sorting at intake, optimising both safety and recovery yields.

In high-volume operations, even small improvements in recovery efficiency lead to substantial value gains. For instance, improving cobalt recovery rates from 1.8% to 1.94% per ton - thanks to better sorting enabled by DBP data - can generate approximately €7,500 per month in additional recovered material value, assuming 10,000 packs are processed monthly. That’s over €90,000 per year from cobalt alone, before accounting for nickel or lithium improvements.

Thus, traceability is not just a matter of documentation - it becomes a margin multiplier across the circular battery economy.

Traceability as a Strategic Asset

From servicing to resale, repurposing to recycling, the project’s exploitation findings point to one conclusion: traceability equals value. In some cases, this value is direct, like higher resale prices or faster tender wins. In others, it is indirect, such as lower insurance premiums, reduced logistics delays, or enhanced brand credibility in sustainable markets.

Some of BASE’s partners are also exploring monetisation of traceability itself - offering per-scan pricing for DBP-ready diagnostics, data integration services for warehouse operators, or audit-ready toolkits for dismantlers and recyclers.

The DBP acts as a unifying infrastructure through which all these opportunities flow. It enables each actor to document their work, build verifiable histories, and connect their actions to regulatory and market value.

From Regulation to Revenue

The BASE project is proving that the Digital Battery Passport, far from being a bureaucratic burden, is becoming a strategic business enabler. Batteries with a clean, traceable, and verifiable story are simply worth more - whether they are resold, reused, or recycled.

In the coming years, we expect:

• Verified batteries to command price premiums
• Traceable second-life modules to become standard in public tenders
• Insurance and warranty providers to differentiate based on DBP data
• New actors - logistics firms, garages, fleet managers - to participate in value-adding traceability workflows

With the DBP, what was once invisible will now, in many ways, be monetisable.

Closing Thoughts

Second-life batteries are becoming financial instruments, data-driven assets, and compliance-ready building blocks of the energy transition. The Digital Battery Passport (DBP) makes it possible to shift from transactional battery sales to value-rich, traceability-backed exploitation across the entire lifecycle.

The BASE project is showing that exploitation is not merely about using project results - it is about activating them: transforming diagnostic data into resale premiums, turning safety validation into insurance leverage, and converting operational histories into tender-winning bids. Each of these outcomes stems from deliberate, structured exploitation of what the DBP enables - traceability, credibility, and circularity.

The actors in the eco-system or battery lifecycle chain, who recognise this shift early - and build their systems, tools, or services accordingly - will be best positioned to lead in a new market where value is no longer just extracted from materials, but created through information.

From refurbishers and fleet managers to OEMs and recyclers, the question is no longer if the DBP data matter to all, but how fast each actor can exploit it for competitive advantage.

And as regulatory enforcement tightens and data expectations rise, the ability to turn traceability into monetisable action may well become one of the most powerful differentiators in the battery economy.

The BASE project has received funding from the Horizon Europe Framework Programme (HORIZON) Research and Innovation Actions under grant agreement No. 101157200.