Makers of batteries for electric vehicles will need to respond to the climate crisis and sustainability goals by disclosing their carbon footprints and reducing the use of rare metals, according to a senior executive at Panasonic Holdings’ battery unit.

Customers are now adding carbon footprints — or the total greenhouse gases generated during a product’s life-cycle — as a measurement when assessing batteries, on top of cost and capacity, Shoichiro Watanabe, the chief technology officer of Panasonic Energy, said in an interview. It’s important for battery-makers to spend more on facilities from an environmental, social and governance perspective, even if costs rise, he added.

While battery-makers’ environmental approach has yet to impact orders, "it’s pretty obvious that we will see this happen at some point,” Watanabe said.