THE ROLE OF DIGITALIZATION IN THE BATTERY CIRCULAR ECONOMY

The Role of Digitalization
in the Battery Circular
Economy
Jill Pestana
Battery Lead, North America
March 14, 2023
EV Battery Recycling and Reuse USA 2023

Agenda
Accenture‘s Role in Battery Circularity
Battery Passport
Gigafactory Digitalization
Technologies Enabling Industry 4.0
1
2
3
4
Additional Projects
5

Copyright © 2020 Accenture. All rights reserved.
INDUSTRY X
Accenture – Fact Sheet
Embrace change.
Unleash innovation.
We are a global professional services company with leading capabilities in digital, cloud and security. Accenture provides services and solutions across more than 40 industries in five
industry groups. This industry focus gives Accenture’s professionals a thorough understanding of industry evolution, business issues and applicable technologies, enabling us to
deliver innovative solutions tailored to each client.
721k people
serving
>6,000clients in
>120
countries
97
of our top
#100
have been our
clients for at
least 10 years
of the Global
Dow Jones
Sustainability
Index FTSE4Good
Global Index
are Accenture
clients
75% 15
91
of the Global
are Accenture clients
$61.6B
Annual Revenues
22%
Total Shareholder
Return CAGR (5FY)
Barron’s Most
Sustainable
International
Companies
#2
Consecutive
years
For 2
consecutive
years

INDUSTRY X
Accenture – How we are organized
Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy &
Consulting, Technology and Operations services, Accenture Song and Industry X.
Strategy
& Consulting
Technology Industry X Operations Song
▪ Business / Technology
Strategy
− M&A and PE
▪ Industry / Functional
▪ Consulting
▪ Technology Advisory
▪ Applied Intelligence
▪ Innovation Hub
▪ Application Services
▪ Intelligent
Platform Services
▪ Cloud & Infrastructure
▪ Software Engineering
▪ Security Services
▪ Labs / Ventures
▪ Ecosystem Alliances
▪ Capital Projects
▪ Engineering Services
▪ Sustainable Mobility
▪ Energy Transformation
▪ Digital Manufacturing &
Operations
▪ Intelligent Asset
Management
▪ Engineering and R&D
Digitization
▪ Smart Connected Products &
Platforms
▪ Business Process Services
▪ Function-Specific
▪ Finance & Accounting /
Procurement / Marketing
▪ Industry-Specific
▪ Banking / Insurance / Health
Care
▪ Innovative Experiences
▪ Growth, Product & Culture
Design
▪ Technology & Experience
Platforms
▪ Creative, Media & Marketing
Strategy
▪ Campaign, Content &
Channel Orchestration

INDUSTRY X
We are inorganically extending our offer through targeted strategic
investments to acquire specific competences…
umlaut adds more than 4,200 industry-leading
engineers and consultants across 17 countries to
Accenture’s Industry X services and expands the
company’s capabilities across a range of industries,
including automotive, aerospace & defense,
telecommunications, energy and utilities.
Eclipse automation is a leader in manufacturing
solutions, thanks to its leading-edge automation
expertise. Bringing 20+ years of specialist expertise in
advanced automation Eclipse Automation combines
complex know-how of production, manufacturing
and distribution of high-tech automated global
solutions.
T.A. Cook provides services in data-driven
maintenance, operations and asset life cycle
management including a proprietary as-a-service
reliability solution. Its asset performance
management capabilities and capital projects skills

INDUSTRY X
Industry X in the Battery Ecosystem
Mining &
Refining
Chemistry
Battery
system
integration
Automotive
Battery cell
manufacturing
Recycling
Industrial
Energy
We offer technical advisory and engineering in order to…
1. Address the needs of the battery industry and add value
This is only possible with in-depth industry knowledge and functional capabilities.
2. Provide the engineering resources needed to build this
industry
Deliver projects with battery experts and other specialized industry professionals.
3. Drive the digital transformation of the battery business
Use the power of data to reimagine batteries and how we make them.
4. Accelerate a sustainable growth of the technical ecosystem
Optimized asset management will lead to cheaper and more sustainable batteries.
5. Strengthen the industrial interfaces in the battery world
Understand the perspectives of all stakeholder and manage information.
Accenture
Industry X
Our role: we provide 360° value with professional services across all relevant industries

INDUSTRY X
Sustainable Batteries
Batteries are the to accelerate the decarbonization of our mobility and energy sectors.
Recyclability
Carbon intensity
Battery price
Energy density
Low social impact
Regional origin
Source: European Conference on Batteries, Online Expert Poll 2020
The battery ecosystem is prospering:
Due to their content of critical materials and their energy-intensive
production, batteries still come with a relatively large environmental
footprint that is hurdle on our way to sustainable transport and energy
storage. From a global perspective, the battery costs are the most
impairing factor that slows down the market penetration of electric
vehicles, but Europe has the ambition to build the greenest batteries on
the planet.
Hot topics:
• Competitive sustainability & circularity concepts
• Battery (material) passport
• Life cycle analysis and footprint minimization
The most important goals for European battery cells

INDUSTRY X
Supplier
• Due diligence obligations
• CO2 footprint
• Material conformity
Battery cell manufacturing
• CO2 footprint
• Use of recyclates
Battery properties
• Performance and durability requirements
• Expected lifetime
End-of-Life
• Collection of batteries
• Remanufacturing
> Battery passport and data exchange system
> Declaration of conformity
> Labelling requirements
Documentation and
information obligation
The new EU Battery regulation
The regulation covers the entire battery life cycle

INDUSTRY X
The Battery Passport
Definition from Global Battery Alliance (GBA)
The Battery Passport is a digital representation of a battery that conveys information about all applicable
environmental, social, governance and lifecycle requirements based on a comprehensive definition of a
sustainable battery. For efficiency and compliance reasons, the GBA will base this definition of requirements
on existing relevant standards, laws and regulations.
Each Battery Passport will be a digital twin of its physical battery enabled by the digital Battery Passport
platform, which offers a global solution for securely sharing information and data. This platform aims to go
beyond enabling the performance management of just one battery to that of all batteries across the full
industry value chain.
It is not a commercial product but a means to enable confidence that transactions adhere to all pertinent
requirements.
Source: Berger et. Al: Needs and requirements 2022

INDUSTRY X
The Battery Passport
Interoperablewithotherproductpassports,freeaccessforrelevantparties,datastoredbycreator,dataauthentication
enabled,andsecurityandprivacytopreventfraud.
The three layers of the European battery passport:
1. Basic information for public and consumers
2. Technical information for recyclers / economical operators
3. Further information for European market surveillance authorities
Dynamic battery data
• Battery properties (SOH, IR, …)
• Cycling data
• Remaining useful life estimation
• Repairs / replacement parts
• Remanufacturing / repurposing
• Involvements in accidents
• Misuse / warranty cases
Raw material provenance
• Geographic material origin
• Critical material tracing
• Supplier due diligence
• ESG compliance
Carbon footprint declaration
• Emissions of cell production
• Emissions related to raw
materials
• Other lifecycle emissions
Static battery data
• ‘Digital datasheet’
• High-level BOM
• Material composition
• Recycled content
• Production history
Logistics & transport info
• Certificate of authenticity
• Exports (outside EU)
• Safe transport conditions
Objectives and benefits
• Comply with the EU directives by 01/2026 and upcoming
secondary legislation (e.g., for recyclers)
• Improve battery sustainability through carbon footprint ratings
• Improve supply chain transparency and facilitate easier SCM
• Become an early adaptor to set professional standards for
battery data management

INDUSTRY X
Battery Value Recovery: Circular Business Models
Batteriesarecomplexbutvaluableassetsthatcomewithchallengesovertheproductlifecycle.
Production & first use End of life
Second life
Energy concepts for
battery production
plants
Innovation scouting for
ESG-friendly battery
materials
Production process
optimizations
Battery design for future use (the 10Rs):
Reuse, repair, remanufacture, recycle, …
New business
models based on 10R
concepts
Logistic, recycling process
and black mass
optimization
Data collection and analytics strategies for battery health,
safety and remaining life assessment
Requirement management for
dismantling and processing
Extract material information
and value from battery
BOM
Sustainable design
Value preservation
Digital solutions
Battery passport and digital twin conceptualization and implementation for EU directive compliance
Lifecycle assessment (LCA) according to ISO 14040 standard
Additional
services:
Scrap and waste
reduction roadmaps
Track and trace
concepts in battery
cell production
Supply chain
resilience and
supplier checks
Residual value
appraisal and cost
modelling

INDUSTRY X
Battery Cell Production in the US
>670 GWh/a
Announced production
capacity for 2030
$369 Billion
Capital investment in battery
manufacturing and clean energy
ecosystem through IRA alone
~40 Gigafactories
Projects made public
Map of gigafactories does not include all announced projects and information may be out-of-date.

INDUSTRY X
Battery Passport Implementation: Gigafactory
Traceability from raw materials in to cell finishing enables battery manufacturers to increase efficiency, lower
costs, and provide quality cell products.
Energy Efficiency
Consulting
Supply Chain Management
Battery Production
Engineering
Plant Performance
Management
Battery engineering services: cell, module and pack development, simulations and testing
Accompanying strategy services: CAPEX & contracting reviews, technical due diligence, funding & investment tactics
Operate
&
maintain
Design
&
build
Extras
Digital Solutions & IT/OT
Architectures
Custom Automation
Solutions

INDUSTRY X
Digital Architectures for Gigafactories
Find and implement the right IT/OT platform architecture and software solutions
for custom data needs and requirements.
Shopfloor
Process, sensors & signals
SCADA
Supervisory control and data acquisition
PLCs
Programmable logic controllers
MES
Manufacturing execution system
ERP
Enterprise resource planning
PLM
Product
lifecycle
management
DT
Digital
twins
Classical
OT domain
Classical
IT domain
Cloud
(UNS)
Edge
(MQTT)
Data
platforms
+ Big data
+ Mobility
+ Cyber security
Our technology
partner network:
(extract)
Exemplary
Platform
Architecture
Accenture services from IT strategy to robust scalable systems:
1. Define the digital strategy for the plant(s)
2. Create a roadmap to prioritize the implementation of solutions
3. Determine the use cases (e.g., for MES), write technical requirements
and start the tendering process
4. Technical and commercial evaluation of vendor solutions with
assessment matrices and contract reviews
5. Implement the IT/OT solutions and intensify the engineering work – it
may take more resources than first assumed
• Product
Processes
• Plant

INDUSTRY X
Managing Battery Data
Accenture is leading in digital technologies that leverage battery data.
Our network in the
battery data
ecosystem:
(extract)
Collect Process Manage Benefit
• Strategize on the in-house or external
generation of data
• Create pathways to access to third party
battery data (e.g., from cell production
or OEM)
• Define battery data acquisition
techniques and test routines
• Testing and validation of battery data in
umlaut test center
• Define, develop and create a digital
twin for the battery
• Apply physicochemical models or
data-driven approaches and optimize
them for application
• Advance battery analytics from
descriptive to predictive e.g., for aging
/ lifetime predictions
• Check interoperability of data
platforms (e.g., EU battery pass)
• Develop custom solutions for EV
fleet management (BMS) or ESS
monitoring (EMS)
• Hardware and software testing of
BMS/EMS
• Implement support for novel
technologies e.g., cell-to-x
integration, hybrid battery systems
or wireless BMS
• Manage warranties and services
• Improve technical base for battery
diagnostics and health monitoring
• Optimize the battery utilization,
maximize the battery lifetime and bring
down asset cost by correct
dimensioning of batteries
• Develop data monetization strategies
and new business models

INDUSTRY X
16
Digital Value Realization
Typical value realized in heavy engineering companies
Digital Themes IoT Use cases Addressed
Connected Machines
Applicable Architecture Elements
Connected Manufacturing/
Projects
Connected Logistics
Connected Worker
Connected Materials
Potential Value Levers & Base
Contract Workforce Productivity
Reconciliation of work assignment (scope & spend), useful
man hours, its machine usage & access enforcement
Machine OEE
Monitor performance, utilization and
availability of machines including connected machines (ex:
Product as service)
Machine Failure Analytics to improve lifecycle cost
Analyze machine health monitoring
and predicting failures in advance
Job Planning & Execution through simulated run
Analyze process impact factoring constraints, learnings etc.
in virtual closed loop setup
Digital material handling
Shipment & Materials including WIP/consumables tracking &
tracing, man-material authentication, ageing, TAT etc.
3-D Printing
Improved availability of tools/components
Equipment Availability (5-10%)*
Equipment Downtime (1-5%)*
Improved visibility job planning & execution
Improved monitoring of machine utilization
Useful life of machine (15-20%)*
Workforce productivity (15-20%)*
Improved workforce planning
Reduction of shipment detention/demurrage
Improved material visibility (Track & Trace)
Real-time reconciliation of stock including WIP
Improved logistics planning & execution

INDUSTRY X
Technologies enabling traceability and Battery Passport
• The Blockchain technology can be used for the development of the
battery passport to ensure the integrity, security and availability of
data on every life stage of the battery. This will enhance transparency
and transform the value chain in a more sustainable one.
• Manufacturing: Battery production data -static data that cannot be
changed.
• Logistics: All kinds of logistics data
• Application: Information about the battery during charge, discharge,
maintain or operation- are uploaded
• EOL: The recycler/EOL stakeholders can decide the strategy based on
the obtained battery information-the processing information is also
written to the block.
• Machine Learning is an application of artificial
intelligence (AI) where a computer/machine learns
from the past battery behavior data and makes future
predictions like:
• Battery remaining useful life
• Battery health state
• The risk of hazardous failure of batteries
• Electrochemical behavior
• Physical behavior
• Thermal Behavior
• The Machine learning is used for traceability of
degradation data
• The Internet of Things (IoT) is a system of wirelessly
connected devices that are able to exchange data with each
other remotely and in real time.
• IoT technologies enable devices and people to collaborate
more effectively
• The collected data is then uploaded over the network to
receivers such as RFID tags, and the mediation software can
be used for communication between sensor devices and
tags or actuators.
• IOT enables the collection, transmission and analysis of data
in the industrial process in real time and serve as a basis for
more effective decision making and optimization of the
industrial process.
Digital Twin
Blockchain
Machine Learning
IoT
• DT is a complex virtual model that is the exact counterpart of a
physical battery- coupling the real battery data with the virtual
model.
• Evaluate the operation status of battery systems
• Application framework consists of physical space, virtual space
and information processing layer
• Relies on specific industrial practices
• Visualizes battery in the application in real-time
• Builds a digital thread, connecting disparate systems, managing
complexities and promoting traceability
• Enables predictive analytics

INDUSTRY X
Digital Twin
Use a digital twin to run simulations, study performance
issues and generate possible improvements which can then
be applied back to the original physical object.
A digital twin is a virtual model designed to accurately reflect
a physical object. Everything could have its digital
counterpart, from a components or parts of a machine up to
entire systems or processes.
▪ SENSORS which produce data
▪ DATA related to the operative lifetime
▪ SOFTWARE that can proceed data
▪ CLOUD SERVICE that can ingest data
WHAT DO YOU NEED TO DEVELOP?
Virtual
model
Physical
object
Data & information sharing
between each other
Cell Module Pack
Vehicle
integration

INDUSTRY X
Blockchain for the Battery Passport
For free License
The Blockchain technology can be used for the development of the digital battery passport to ensure the integrity,
security and availability of data on every life stage of the battery. This will enhance transparency and transform the value
chain in a more sustainable one.
1.
2.
3.
Raw material supply:
…batch n°54785473 …date 09/09/1999..signature
Cell manufacturing:
DIGITAL BATTERY PASSPORT
Vehicle integration:
...

INDUSTRY X
Data Accessibility
Removing barriers to accessing and leveraging data for better decisions, actions, and speed.
RFID Implementation in Mining
• Location of the mine facility
• Name of the company
• Container serial number
• Date of extraction
• Type of extraction processes & parameters
• Road map of transports
• Date of journey and durations
• Sender & addressee
• Environmental parameters from the vehicle
• Data of airbag opening in case of accidents
GPS in Logistics and Transport
• Location of the Refining facility
• Name of the company
• Raw material batch serial number
• Date of refinement processes
• Type of Refinement Processes & parameters
RFID in Raw Material Processing

INDUSTRY X
Data Accessibility
Removing barriers to accessing and leveraging data for better decisions, actions, and speed.
Digital Twin for Cell/Pack Design Industry 4.0 for Cell & Pack Manufacturing Cloud Connectivity for Operation
• Type of cells
• Characteristics of the cells
• Numbers of cells
• Module/pack design
• Sizing of the cells
• Cell performance historical data
• Materials’ properties
• Machinery parameters
• Environmental conditions
• Manufacturing processes
• Electrodes & cell characteristics
• Cell finishing parameters
• Battery module sizing / form factor
• Voltage and Voltage balance (Vpack, Vcell)
• Current (Ipack)
• Temperature (Tpack, Tcell)
• Charging data
• SOH and performance

INDUSTRY X
Second Life of EV-Batteries
Dynamic product lifecycles blur the vision of an ideal EOL strategy for EV batteries.
Uncertainties for battery remanufacturers
Game changers (techno-economic disruption)
1. Battery Passport – digital platform that enables, forces or facilitates data exchange (to certain extent)
2. Product Innovation – low-cost (<70 $/kWh) high-lifetime (>20 a) batteries: unattractive for recyclers
3. Battery-as-a-Service – OEM stays in control, makes it easier to replace and repurpose batteries
1. Lack of EOL returns – low collection rate, exports, recycling as main option → no economy of scale
2. Technological maturity – new batteries enter the market with improved KPIs and longer warranties
3. Cost pressure – price degression for new batteries low price acceptance for 2nd life batteries
4. Information asymmetry – limited access to battery data, investments for testing necessary
5. OEM dependency – power imbalance, information sovereignty, sudden vertical integration of reman.
0%
20%
40%
60%
80%
100%
2020 2025 2030 2035 2040 2045 2050
Share
of
EVs
in
operation
Increasing battery
& EV lifespans
Lifespan considerations for new EVs:
Battery recycling
EV
2nd life battery application
End of warranty
period
12 ± 3 years
80% EVs
reached EOL
Typical vehicle life
Battery
10-20 years
>20 years for
novel cell
chemistries
Typical battery 1st life
+5-20 years usable battery
life
~2% battery returns
under warranty
Most battery
returns at EV-EOL
2nd life delays battery material
recovery

INDUSTRY X
Additional Accenture projects on Battery Recycling and Traceability
Market Strategy and Technology Analysis for a Lithium-
ion Battery Recycling Facility
A manufacturer and developer of high-grade metal powder is
planning to enter the LIB recycling industry to recover and
produce cathode active materials and precursors. Umlaut
consulted in a strategic developing phase to provide an overview
of battery material and recycling market and a value chain model
for material production and recycling. Umlaut enabled the client
to position themselves for cathode active material sales.
10 weeks 8
Europe
Recycling
Traceability framing project for a car battery
manufacturer
A French-based company has the ambition to build three
gigafactories in Europe and needs to implement
traceability system, to improve transparency of the
supply chain, increase quality in manufacturing and
comply with the upcoming regulations. Accenture
developed traceability strategy and system.

INDUSTRY X
Towards a Closed-Loop Battery Economy
Forafunctionalbatteryeconomy,stakeholdersfromdifferentindustriesneedtoworkcloselytogether.
The 10 Rs for a circular battery economy:
1. Repair: restore the battery’s original functionality
2. Reuse: keep using the battery for a longer period
3. Reduce: minimize waste, production scrap and battery size
4. Rethink: consider new business models (e.g., BaaS)
5. Refuse: avoid waste, critical or ESG-problematic materials
6. Refurbish: restore the battery to a new condition
7. Remanufacture: create a new battery out of used parts
8. Repurpose: switch e.g., from mobile to stationary application
9. Recycle: process the EOL batteries into reusable materials
10.Recover: get some energy back through incineration (last resort)
Read more about the 10Rs in our article
Material
precursor
production
Active
battery
material
production
Battery
system
integration
Battery use
(1st or 2nd
life)
Battery cell
production
Battery /
material
recycling
Battery /
black mass
collection
Raw
material
mining
Raw
material
refining
Battery
disassembly
9-
10
1-5
6-8

INDUSTRY X
Thank you!
Pleasefeel freeto contactus if you havequestions
Accenture
Industry X
Jill Pestana
Battery Lead North America
Phone:+1 805 944 5688
Mail: jill.pestana@accenture.com

THE ROLE OF DIGITALIZATION IN THE BATTERY CIRCULAR ECONOMY

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