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Battery State of Health in the Passport

State of health is the only battery passport attribute that changes after manufacture. What it measures, why definitions differ, and how it decides second life.

CirculeID Research6 min read1,329 words

State of health expresses a battery’s remaining capacity as a proportion of its rated capacity, reported by the battery management system. It is the only passport attribute that changes continuously after manufacture, and it determines whether a used battery has a second life or is waste.

What this gives you

How to keep state of health current after sale without overwriting history, the EPCIS event pattern that records it, and what a second-life buyer needs to trust the number.

Key takeaways

  • State of health is a live value, not a specification, which makes it architecturally different from every other passport attribute.
  • There is no single agreed definition, so a figure without its measurement method is not comparable between manufacturers.
  • It is the attribute that determines whether a used battery is an asset or a disposal cost.
  • Reporting it requires the passport to accept updates from a device in the field, not just from a factory.

Almost everything in a product passport is fixed at manufacture. Composition does not change, origin does not change, and the carbon footprint declaration is calculated once. State of health is the exception, and that single difference has consequences throughout the architecture.

Regulation (EU) 2023/1542 requires the battery passport to carry information on state of health, which means the passport has to accept data from a battery in service rather than only from a factory.

What it actually measures

At its simplest, state of health is the ratio of a battery’s present capacity to its rated capacity when new, expressed as a percentage. A battery at eighty per cent state of health holds four fifths of the energy it originally could.

The complication is that capacity is not the only thing that degrades, and different applications care about different degradation. Internal resistance rises, which limits power delivery even where capacity is intact. For a power tool that matters more than capacity; for stationary storage it matters less.

Battery degradation measures and what each one predicts
MeasureWhat it capturesMatters most for
Capacity fadeEnergy the battery can still storeRange and run time
Internal resistance risePower the battery can still deliverAcceleration, high-drain tools
Cycle countHow much use it has hadWarranty and expected remaining life
Calendar ageDegradation from time aloneBatteries stored more than used
Cell imbalanceDivergence between cells in a packWhether the pack can be reconditioned
Battery degradation measures and what each one predicts

A single state of health percentage collapses several of these into one figure, and how that collapse is done varies by manufacturer. That is why two batteries both reported at eighty-five per cent may have materially different remaining useful lives.

Why the definition problem matters commercially

The second-life market for batteries depends on being able to price a used pack. Pricing requires comparison, and comparison requires a common definition.

For the passport, the implication is that the measurement method belongs in the record alongside the value, in the same way a carbon footprint needs its boundary. Without it, aggregating state of health across a fleet produces a number that looks precise and is not.

How a live attribute changes the architecture

Static attributes are written once and read many times. A live attribute has to be updated by something in the field, which raises questions the rest of the passport never faces.

  • Who is permitted to write it. The battery management system, a service centre, or a second-life assessor — and how each proves it is entitled to.
  • How often it updates. Continuous reporting is unnecessary and expensive; an update on service events and ownership transfer is usually sufficient.
  • What history is retained. A single current value hides a degradation curve, and the curve is what predicts remaining life.
  • What happens offline. A battery in a vehicle without connectivity still degrades, so the passport must tolerate a stale value with a clear timestamp.

The timestamp point is the one most often missed. A state of health figure without a date is unusable, because the reader cannot tell whether it describes the battery today or three years ago.

The second-life decision

The commercial reason this attribute matters is that it decides what happens to a battery when it leaves its first application. That decision has three outcomes with very different values.

The thresholds vary by chemistry and application; the structure of the decision does not.

That last row is the one the passport exists to prevent. A pack with no reliable health data is assessed as scrap regardless of its actual condition, because individually testing a used pack costs more than the difference in value. Reliable reported state of health is what makes the second-life route economic at all.

What to put in place

Three practical measures cover most of the requirement and are considerably easier to design in than to retrofit.

First, record the measurement method alongside the value, so the figure remains interpretable by a buyer who has never seen your battery management system. Second, retain a history rather than only the current value, because the degradation trend predicts remaining life better than any single reading. Third, timestamp every reading and surface the age of the data, so a stale value is visibly stale rather than silently wrong.

None of these require continuous connectivity. A reading captured at each service event, at fault diagnosis and at ownership transfer produces a usable curve for most applications, and those are moments when the battery is already being interrogated.

Frequently asked questions

What is battery state of health?

The ratio of a battery’s present capacity to its rated capacity when new, usually expressed as a percentage and reported by the battery management system. It indicates how much energy storage remains, though capacity alone does not capture power delivery, which degrades separately through rising internal resistance.

Why do manufacturers report it differently?

Because there is no single agreed derivation. Some report capacity fade measured against a reference test, others an estimate from an internal degradation model, and some blend capacity with resistance. All are labelled state of health, which is why the method belongs in the passport alongside the number.

How does it affect second life?

It determines the route entirely. High remaining capacity supports reuse, moderate capacity supports stationary storage, and low capacity means material recovery. A battery with no reliable health data is treated as scrap, because individually testing a used pack costs more than the value difference.

How often must state of health be updated?

The regulation requires the information to be available rather than prescribing a frequency. Practically, updates at service events, fault diagnosis and ownership transfer produce a usable degradation curve without requiring continuous connectivity, and those are moments the battery is already being interrogated.

What if a battery has no connectivity?

The passport carries the last known value with its timestamp, and the age of the reading is surfaced rather than hidden. A stale figure that is visibly stale remains useful; a stale figure presented as current is actively misleading to anyone valuing the pack.

Who is allowed to write state of health into the passport?

The battery management system and authorised service or assessment parties, each proving entitlement. Allowing arbitrary writes would let a seller improve the reported condition of a pack they are about to sell, which would destroy the trust the second-life market depends on.

Does state of health apply to all batteries in scope?

It applies to the categories the battery passport covers — light means of transport, electric vehicle and industrial batteries above the threshold. Those are precisely the batteries whose residual value justifies a second-life assessment, which is why the attribute is required for them.

Sources

  1. Regulation (EU) 2023/1542 concerning batteries and waste batteriesEUR-Lex, European Union, 2023-07
  2. Regulation (EU) 2024/1781 establishing a framework for ecodesign requirementsEUR-Lex, European Union, 2024-06

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