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The circular economy: moving towards sustainability

7 July 2023

In the search for more sustainable and environmentally friendly solutions, the circular economy and the green economy have become key concepts. These approaches aim to minimise the negative impact of our economic activities and encourage reuse, recycling and waste reduction. 

In this context, the role of lithium and its application in utility and commercial vehicles play a key role in moving towards a more sustainable future.

What is the circular economy?

The circular economy is an economic model based on maximising the value of resources throughout their life cycle. Unlike the traditional linear "use and dispose" model, the circular economy promotes the reuse, recycling and renewal of products and materials, thus avoiding the generation of waste and the extraction of new resources.

In this sense, the circular economy seeks to close material and energy cycles, keeping products, components and materials in use for as long as possible. It focuses on reducing waste production, optimising resources and promoting energy efficiency.

The role of lithium towards sustainability

Lithium has become highly relevant in the context of the transition towards a greener and more sustainable economy. As a key element in lithium-ion batteries, lithium has revolutionised the electric mobility sector, providing a cleaner and more efficient alternative to fossil fuels.

Lithium batteries offer a higher energy density, allowing for longer range and more efficient performance in the most demanding applications. electric vehicles utility and commercial vehicles. In addition, lithium has a longer life cycle compared to other battery technologies, which contributes to increased durability and reduced waste.

Implementation of the circular economy in commercial and utility vehicles

The circular economy finds a direct application in commercial and utility vehicles, where the optimisation of resources and the reduction of waste are essential. 

The incorporation of lithium batteries in these vehicles not only improves their performance and efficiency, but also enables the implementation of circular economy strategies.

In addition, the lithium industry has made progress in the implementation of battery recyclingThis allows the recovery of valuable materials such as lithium, cobalt and nickel. 

This contributes to closing material cycles, reducing dependence on the extraction of new resources and reducing the environmental impact of battery production.

European Battery Regulation

The new European Battery Regulation, the final text of which was agreed on 9 December 2022, aims to boost technological progress in the battery sector and minimise the environmental impact of battery production. 

It will gradually replace Directive 2006/66/EC and will be implemented in all EU member states from June 2023.

The main requirements of the new regulation are as follows:

  • Documentation: A European Battery Passport will be required, which will be an electronic document with an identification QR Code and a CE label. This passport will provide information on the carbon footprint of batteries and ensure their traceability.
  • CE marking: All batteries placed on the market must bear the CE marking, which indicates that the product complies with EU safety, health and environmental protection requirements.
  • BMS: from May 2024, all batteries will have to be equipped with a Battery Management System (BMS) to provide up-to-date information on battery status and expected battery life.
  • Carbon footprint: rules and methods will be established to quantify the carbon footprint of batteries, assessing the greenhouse gas emissions generated throughout their life cycle.

The regulation aims to ensure that batteries meet environmental, safety and traceability standards, thus promoting a circular and sustainable economy in the battery sector in Europe.

NCPOWER leading the way to sustainability

In this context of circular economy and green economy, NCPower is positioned as a benchmark in the development and manufacture of high quality and high performance lithium batteries for utility and commercial vehicles. 

Our commitment to the circular economy and the green economy positions us as a strategic partner in building a cleaner and more efficient future.

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