2026 is set to be a pivotal year for the UK battery industry. Much of the regulatory momentum is coming from Europe, but the implications extend far beyond European Union (EU) borders. For UK manufacturers supplying into European markets or operating within global supply chains, expectations around traceability, lifecycle data and digital product identity are tightening rapidly. The UK may not have finalised its own Battery Passport, but the direction of travel is broadly aligned, and the practical requirements for staying competitive are becoming clearer.
Over the past year this shift has become increasingly noticeable. Battery Passport pilots, early compliance checks and a series of disputes between suppliers and customers have all highlighted a growing appetite, among regulators, buyers and insurers, for better evidence of how batteries are designed, built and managed. For UK manufacturers, this is something that is already influencing investment decisions, production systems and commercial relationships.
Here, Mark Rutherford, CEO of UK custom pack manufacturer Alexander Battery Technologies, explains how traceability, cybersecurity and accountability are changing the battery supply chain, in both the UK and Europe, and what that means for manufacturers in 2026.
Europe sets the standard and the UK must keep pace
There are several phased requirements for the EU Batteries regulation. The digital battery passport, which enters full enforcement in 2027, requires large industrial and EV batteries (over 2kWh capacity) to carry a verified digital record detailing origin, carbon footprint, materials and key component data. Without it, those products cannot be placed on the EU market.
For UK businesses, this requirement is unavoidable. Any company exporting into Europe must meet the EU standard, whether or not the UK ultimately adopts a domestic Battery Passport. Preparing for compliance means embedding traceability into every stage of production. Weld parameters, torque values, firmware histories and supplier information all need to sit within a controlled, unified system that provides a clear and accurate record of each unit. While this demands a more disciplined approach, it also strengthens the business by improving carbon reporting, reducing exposure to unverifiable imports and creating a sound basis for responsible reuse and recycling.
Although the UK has not committed to a formal Battery Passport, the government’s broader strategy points in the same direction: digital product identity, lifecycle data, improved transparency and stronger expectations around recycling and materials recovery. Most UK manufacturers recognise that aligning with the EU standard now avoids disruption later and provides a consistent baseline across multiple markets.
Software integrity becomes a core part of quality
Alongside regulatory and market pressures, the growing reliance on embedded software within battery systems is creating its own set of challenges. Issues such as cloned hardware, unauthorised firmware changes and poorly managed updates have already caused friction between suppliers and customers. Buyers, particularly those in safety-critical sectors, are demanding stronger assurances that software is authentic, stable and secure.
In response, UK manufacturers are introducing clearer version control, signed firmware and structured audit trails to strengthen software governance. Some have added checksum verification within end-of-line testing to confirm firmware integrity before a pack leaves the factory. These steps reflect a broader shift in mindset: electrical, mechanical and digital checks now carry equal weight and cybersecurity is firmly part of modern quality assurance.
Accountability, insurance pressures and the importance of evidence
Recent disputes in the UK and Europe have shown that, when a problem arises, everything hinges on evidence. Many insurers are taking the same view and underwriters now expect to see robust process control, reliable documentation and demonstrable traceability before they agree to support large projects. Businesses that maintain clear, consistent records tend to secure better terms; those with gaps face higher premiums, delays or restricted cover.
Even without domestic regulation, these commercial pressures are pushing UK manufacturers to raise their standards. Strong documentation is becoming as important as the product itself, not only to meet regulatory expectations but to protect commercial relationships and manage risk.
Chemistry choices, whether Lithium iron phosphate (LFP), nickel manganese cobalt (NMC), sodium-ion or emerging alternatives, will continue to evolve. But the defining factor in 2026 is the ability to show control, consistency and accountability across the entire manufacturing process. For UK businesses competing globally, that expectation has already taken hold.
At Alexander Battery Technologies, this approach remains central to how we work. Every pack we produce is serialised and traceable from design through to testing, giving us complete visibility of the process and the evidence to support it. When questions arise, we can demonstrate precisely how the work was done. It’s part of good engineering practice and the basis on which long-term partnerships are built.
By Mark Rutherford, CEO, Alexander Battery Technologies
