Regulatory Strategy & Digital Product Passport (DPP) Architecture

As digital transformation accelerates, our team partners with clients to turn sustainability challenges into strategic advantages. A leading battery manufacturer faced an EU Battery Regulation (EU 2023/1542) hurdle requiring a granular Digital Product Passport. We led the design of a compliant DPP ecosystem, bridging the client’s MES and a partner blockchain ledger to ensure full traceability of carbon footprints and recycled content. This enabled supply chain transparency from mining to assembly and met OECD due diligence guidelines.

Client: Global Battery Manufacturing Leader (Tier 1 Supplier to European OEMs)

Location: Shenzhen, China / Budapest, Hungary

Duration: 12 Months

Focus: EU Battery Regulation (2023/1542), Digital Transformation, Supply Chain Traceability

Engagement Context:

The client, a Chinese global market leader, faced a critical barrier to entry for its next-generation contracts with European Automotive OEMs. The imminent entry into force of the EU Battery Regulation required granular data transparency that the client’s existing ERP systems could not support.

The objective was to secure the "License to Operate" by establishing a compliant Digital Product Passport ecosystem.

Scope of Engagement:

  • Regulatory gap assessment: We mapped every clause of the EU Battery Regulation against the client’s current data availability, specifically targeting Carbon Footprint Declarations and Recycled Content targets.

  • Data architecture design: Defined the functional specifications for the DPP middleware, ensuring interoperability between the client's internal MES (Manufacturing Execution Systems) and the blockchain-based ledger required by EU partners.

  • Supply chain traceability: Engineered the "Chain of Custody" model to map Tier-N suppliers (mining to refining), ensuring 100% visibility for critical raw materials (Cobalt, Lithium, Nickel) in alignment with OECD Due Diligence Guidance.

  • Stakeholder management: Acted as the technical liaison between the client’s R&D headquarters and European OEM procurement teams to validate data exchange protocols.

Strategic & Commercial Outcomes:

  • Contract security: Validated the client’s regulatory readiness through 2030, effectively unlocking multi-billion Euro supply agreements with Premium German and Swedish automakers (a “license to operate” outcome).

  • Operational resilience: Mitigated "Conflict Mineral" litigation risks by establishing a fully auditable upstream supply chain data model.

  • First-mover advantage: Positioned the client as a “compliance‑ready” partner ahead of regional competitors, strengthening its market standing.

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