Japan and Europe to Share Battery Materials Data Platform to Resist Chinese Monopoly

Japan and Europe are set to establish a system by the end of 2025 to share information on the extraction sites and suppliers of electric vehicle battery minerals, enhance battery recycling, prevent the outflow of critical minerals, and counter China’s monopoly on rare metals.

On Monday, the Information-Technology Promotion Agency (IPA) under Japan’s Ministry of Economy, Trade, and Industry signed a memorandum of understanding with its European counterpart regarding information sharing and mutual certification.

Currently, Japan and Europe each have their own electronic platforms to manage electric vehicle battery information.

Japan is advancing an industrial data platform that spans across companies, industries, and countries, planning to name it the “Ouranos Ecosystem.” “Ouranos” is the name of the sky god in Greek mythology, symbolizing a system that can oversee the whole from above and achieve the interconnectedness of diverse data.

Approximately 50 companies are expected to participate, including automotive giants like Toyota, Nissan, and Honda. Toyota and Panasonic’s joint venture battery company, Prime Planet Energy & Solutions, will also join.

In Europe, the public-private collaborative data platform “Catena-X,” led by automakers such as BMW and Mercedes-Benz Group, has already started operations.

The plan is to link Ouranos and Catena-X by the end of 2025, allowing Japanese companies with Ouranos certification to automatically receive EU certification.

However, confidential information related to core competitive aspects of businesses, such as suppliers and procurement amounts, will not be leaked.

The main goal of this initiative is to share information on current battery materials and track them to prevent crucial materials from flowing beyond their territories.

According to data from the International Energy Agency (IEA), China processes and refines 65% of the global lithium, a key component of electric vehicle batteries. China also accounts for half of the smelting plant construction projects expected to be completed before 2030.

By sharing manufacturing and material supply chain information, Japanese and European companies can collaborate on material procurement, cost reduction, and the efficient development of battery components.

Ultimately, the Japan-Europe alliance will require manufacturers from other countries, including China, to comply with their disclosure rules.

The EU has decided to introduce regulations requiring the recycling of lithium, cobalt, and other electric vehicle battery materials in the region. To comply with the regulations, a “battery passport” like Catena-X and Ouranos is needed to record and manage information about the entire supply chain, including the material’s country of origin, production history, recycling rate, and carbon dioxide emissions.

(Adapted from relevant reports from Nikkei Asia)