From Digital Twins to Circular Loops: Siemens’ Climate Blueprint for the Battery Economy

As the battery industry scales globally, Siemens is embedding sustainability at every stage of the value chain— from design and manufacturing to reuse and recycling.

HONG KONG – As the battery sector gears up to meet the world’s electrification and net-zero ambitions, Puneet Sinha, Senior Director, Battery Industry at Siemens Digital Industries Software, believes the conversation must move beyond production volumes to one of sustainability and circularity.

“We want to empower the entire battery value chain with digital tools that don’t just enable scale, but ensure that growth aligns with climate goals,” said Sinha, speaking with CarbonWire on the sidelines of The Battery Show 2025 in Hong Kong.

Sustainability Begins at the Design Table

For Siemens, sustainability is not a downstream concern — it begins at the point of design. “We always say at Siemens that sustainability must be embedded into everything we do,” said Sinha. “From relying on simulation instead of physical testing, to using digital twins to optimise battery pack structures, our aim is to reduce waste, lower emissions, and accelerate cleaner innovation.”

The approach extends to production too. By using additive manufacturing to reduce the weight of robotic components, Siemens helps cut electricity use on the factory floor. Advanced analytics and automation technologies are also being deployed to optimise energy consumption at the plant level, turning industrial operations into smarter, greener ecosystems.

Circularity as Core Infrastructure

With electric vehicles (EVs) reaching end-of-life in increasing numbers, Sinha stressed the importance of planning for the second and third lives of batteries. “Most EV batteries still retain 70% of their usable energy at the end of their vehicle life. Instead of sending them directly to recycling, they can be repurposed for energy storage or residential backup systems,” he explained.

Yet recycling remains a critical challenge. While over 90% of lead-acid batteries are recycled globally, only 5–7% of lithium-ion batteries are. “Collection logistics, regulatory frameworks, and disassembly inefficiencies are major bottlenecks,” said Sinha. “Disassembling battery packs is still a manual and costly process. That’s where Siemens is applying AI and automation to make recycling both scalable and safer.”

In addition, Sinha called for improved practices around production waste. “Significant material scrap is generated during battery cell manufacturing. Companies must now integrate recycling into their production processes itself — recovering valuable materials from scrap and reintroducing them into the system.”

Digital Tools for Decarbonisation at Scale

Sinha sees digitalisation as the bedrock of climate-aligned industrial transformation. “We are helping companies simulate entire factory setups before ground is even broken,” he said. “This enables them to optimise energy use, material flow, and equipment alignment in advance, avoiding costly changes later.”

Central to Siemens’ offering is what Sinha terms “data-driven manufacturing.” Traditional battery production has been experience-driven, relying on years of manual process optimisation. “But in today’s landscape—with rapidly evolving chemistries and geographies — you can’t rely only on experience,” he said. “Data, AI and digital twins allow companies to detect issues faster, reduce scrap, and maintain quality.”

Sinha noted that Siemens’ clients have seen up to 10% reductions in scrap by applying digital manufacturing solutions, a significant win for both operational efficiency and carbon footprint.

Energy Storage: A Long-Term Climate Asset

Siemens is also addressing the complexities of stationary energy storage — key to managing renewable intermittency. “One gigawatt-hour of energy storage has as many components as a Boeing 787,” Sinha remarked. “So managing inventory, ensuring component traceability, and enabling long-term serviceability becomes critical if these assets are to last 20 years.”

With companies increasingly investing in lithium iron phosphate (LFP) systems for grid-scale storage, Siemens is providing design and digital management solutions to ensure long-term resilience and performance.

A Climate-Focused Ecosystem Approach

Southeast Asia, Sinha says, represents both opportunity and urgency. “Many countries in the region are investing in renewables and electrification of public transport,” he said. “But they are also starting from a relatively clean slate, unburdened by legacy infrastructure. That makes them digitally agile and ready to leapfrog.”

Siemens is actively working with governments and public bodies in the region to share global best practices and accelerate the adoption of climate technologies. “As a company committed to sustainability, we feel it is our duty to help countries embrace digitalisation and decarbonisation together,” Sinha added.

Looking Ahead: A Net-Zero Battery Future

Reflecting on the sector’s trajectory, Sinha noted the dramatic decline in battery costs — from $1,000 per kWh in 2008 to $100 today — and the tripling of energy density. But the path forward, he believes, must now centre on carbon efficiency and circular models.

“Solid-state batteries, sodium-ion chemistries, and even electric aviation are on the horizon,” he said. “But as we innovate on the chemistry front, we must also innovate on how we scale responsibly—through reuse, smarter manufacturing, and sustainable supply chains.”

Siemens, for its part, is not just offering solutions to clients but implementing them internally. “Our own factories are testbeds for sustainable innovation. We don’t just preach — we practice.”

As climate targets tighten and the battery sector surges, Siemens’ integrated approach offers a critical blueprint: digital-first, circular by design, and climate-aligned at scale.