The EU's battery passport mandate takes effect in February 2027. Early movers recognise the commercial advantages of transparency.
The European Union will revolutionise product understanding with the introduction of Digital Product Passports (DPPs), starting with Digital Battery Passports for all industrial and EV batteries over 2 kWh sold in the EU from 18 February 2027. Additional components, textiles, electronics, and consumer goods will be encompassed leading up to 2030.
In this new age, raw material origins, manufacturing processes, carbon footprint data, and real-time performance metrics will flow through digital channels, transforming static components into intelligent, traceable assets.
The hidden competitive battleground:
Most executives view DPPs as a regulatory burden
Smart operators recognise shifting supply chain power dynamics
Companies controlling product intelligence will monetise insights
All products sold in the EU will require a DPP, regardless of the company’s location
Research from GS1 UK estimates £1.5 million per year in lost opportunities and compliance gaps
Supply chain power shift drives new competitive dynamics
As products rely on components sourced externally, suppliers are key to enabling end-to-end traceability through seamless information flow. By supporting Digital Product Passport (DPP) development, they can gain a competitive edge, strengthen manufacturer trust and monetise valuable product data.
Leading automotive companies are already demonstrating strategic thinking about DPPs. Porsche employs blockchain technology throughout its supply chain to generate digital records for materials that flow through its operations. Fellow German manufacturer Audi has partnered with Circularise on the MaterialLoop project, exploring how transparency drives circularity. Elsewhere, Volvo Cars uses blockchain with Circulor for cobalt traceability in its XC40 Recharge and C40 models.
These initiatives represent strategic positioning rather than mere compliance preparation. Companies investing in product transparency now will reshape manufacturing competition over the next decade.
The business intelligence that comprehensive DPPs can create will extend far beyond regulatory requirements. For the first time, manufacturers gain end-to-end visibility that generates actionable data on supply chain efficiency, product performance patterns, and customer behaviour insights—from lithium extractions in Chilean mines through real-world performance to recycling facilities across Europe.
Six stages of DPP adoption
Through our analysis of market dynamics and regulatory requirements, Cognizant has identified six distinct stages of DPP maturity:
Stage 1: Strategic awakening (pre-mobilisation) | Dedicated project to focus on awareness, regulatory understanding, and competitive threat assessment
Stage 2: Strategic readiness | Analysis conducted, preliminary supplier discussions underway, technology and platform selected, dedicated resources allocated
Stage 3: Pilot implementation | End-to-end pilot initiation for specific product lines with comprehensive testing
Stage 4: Enterprise integration preparation | Full implementation preparedness, including supply chain integration
Stage 5: Market deployment | Launch and wider rollout across multiple product lines with customer-facing interfaces
Stage 6: Innovation and Circularity | Maximise commercial value through data driven product insights
Most companies haven't progressed beyond the third stage. However, the organisations advancing to supply chain integration and full implementation are discovering value that extends significantly beyond regulatory compliance. Each stage requires different capabilities, investments, and strategic decisions.
The strategic value extends beyond immediate cost savings. DPP Pilots and industry analysis are uncovering hidden operational inefficiencies and create new opportunities for predictive maintenance, supply chain optimisation, and data monetisation.
For instance, robust digital product information can reduce operational costs by up to 15%, according to data from Amazon's Digital Product Passport initiative.
Building intelligence with DPPs
An approach that leverages blockchain and IoT technologies can create what we envision as "intelligent product passports"—systems that not only document compliance but actively learn and optimise throughout the product lifecycle in diverse industries.
For instance, next-generation product passports could learn continuously from real-world usage patterns. Machine learning algorithms would predict performance degradation, optimise maintenance strategies, and identify opportunities for circular economy applications.
Integrated platforms could feed performance data back into product development, improving durability and efficiency with each design iteration.
The technology infrastructure exists today in multiple industries. IoT sensors embedded in products and manufacturing systems can capture granular performance data. Blockchain platforms can ensure data integrity across complex supply chains spanning multiple continents and industries.
Cloud-based analytics platforms can process this information to generate predictive insights that inform strategic business decisions.
Strategic preparation becomes competitive necessity
Technology alone won't create a sustainable competitive advantage. Sophisticated programmes will have:
robust data governance frameworks that balance transparency requirements with competitive protection,
audit processes to validate data provided by suppliers,
strategic ecosystem partnerships that extend beyond traditional supplier relationships into collaborative networks creating mutual value,
and new business models enabled by complete lifecycle transparency.
Manufacturing industries are facing simultaneous disruption. Sustainability regulations, supply chain complexity, evolving consumer expectations regarding environmental responsibility, and increasing competitive pressure from companies that control product intelligence are reshaping the landscape.
In this context, DPPs become critical infrastructure for future competitiveness. Companies approaching them strategically will build capabilities that compound over time.
Data management systems enable AI-driven optimisation. Supply chain partnerships create opportunities for resilience and innovation. Customer relationships built on demonstrated transparency provide sustainable differentiation.
The risk of delayed action increases with each passing quarter. As leading companies establish partnerships with key technology providers and capture talent with relevant expertise, followers face higher implementation costs and reduced strategic options.
The companies that move now secure first-mover advantages in data commercialisation and ecosystem partnerships. Those who wait find themselves dependent on suppliers and competitors who control the product intelligence that drives profitability.
Two distinct paths are emerging: compliance-focused manufacturers will meet regulatory minimums while strategic adopters will monetise product data to build new revenue streams and operational advantages.
In our upcoming strategic implementation guide, we'll examine the six-stage maturity framework that leading manufacturers use to convert regulatory obligations into business advantages. We'll analyse the data commercialisation models that generate measurable returns, the technology architectures that scale effectively, and the partnership strategies that create sustainable market positions.
The countdown to February 2027 continues, but the winners are already building their advantage through strategic preparation rather than reactive compliance.
Ready to assess your organisation's DPP maturity and explore implementation strategies? Contact our automotive transformation team to discuss how Cognizant can accelerate your journey from compliance to competitive advantage.
About the authors:
Milap Barmecha is Senior Consulting Manager at Cognizant, specialising in automotive digital transformation and product management.
Soumya Sarthak is Senior Consulting Manager at Cognizant, focusing on automotive product development and business transformation initiatives.
Premanand Venkatapathy is Consulting Principal at Cognizant, leading automotive industry transformation initiatives across Europe.
