EU sustainable batteries regulation becomes law

author: FutureCar Staff    

After a long legislative process, the new EU Batteries Regulation has been published in the Official Journal of the EU. It will come into force later this month and will be effective from February 18, 2024. This Regulation aims to promote the sustainability of batteries throughout their entire life cycle and adds to the growing body of legislation concerning supply chain compliance. It applies to all types of batteries, including those used in industrial applications and electric vehicles. The requirements cover recycling, labelling, and due diligence.

The new Batteries Regulation replaces the existing EU Batteries Directive (2006/66/EC). It has three main priorities: strengthening the internal market by setting standardized rules for battery products, processes, waste batteries, and recyclates; promoting a circular economy; and reducing the environmental and societal impact of batteries throughout their life cycle, with a focus on supply chains.

The Regulation sets out requirements for economic operators who place batteries on the market or put them into service in the European Union. It applies to all categories of batteries used in the EU, including those imported from non-EU countries. This includes batteries used in electric vehicles, light transport, industrial applications, waste portable batteries, and starting, lightning, and ignition (SLI) batteries. Economic operators refer to manufacturers, authorized representatives, importers, distributors, fulfillment service providers, or any other individuals or entities involved in the manufacture, preparation, distribution, or disposal of batteries.

In addition to the obligations that apply to all economic operators, Chapter VI of the Regulation specifies certain obligations for manufacturers, importers, and distributors. Notably, it establishes extended producer responsibility, requiring producers to finance the costs of collecting, treating, and recycling all collected batteries. Producers are also responsible for conducting surveys on mixed collected municipal waste, reporting on batteries and waste batteries, and providing information to end-users and waste operators. The Regulation also includes rules on green public procurement for batteries.

The Regulation aligns with the European Green Deal and aims to promote circularity in batteries throughout their lifecycle. It sets targets for the collection of waste portable batteries and waste batteries for light means of transport, with interim targets for 2027 and final targets for 2030 and 2031. The Regulation also mandates the recovery of lithium from waste batteries and sets minimum levels of recycled content for lithium, cobalt, lead, and nickel in new batteries. By 2027, portable batteries used in appliances should be removable and replaceable by end-users.

The Regulation introduces harmonized rules on safety, sustainability, and labelling requirements. It restricts the use of hazardous substances like mercury and cadmium and requires the disclosure of the carbon footprint of batteries. Labels will need to provide information on components, battery lifetime, and recycled content. A digital product passport and a QR code linking to information on battery composition will also be required.

Economic operators placing batteries on the market will need to comply with due diligence requirements, similar to other supply chain legislation, starting from August 2025. This includes verifying the source of raw materials used for batteries, determining internal responsibilities, and third-party verification of battery due diligence policies. Non-compliance can result in restrictions or prohibitions on the market availability of batteries and specific sanctions imposed by member states.

The Regulation will have implications for companies in various sectors, especially those involved in aerospace, automotive, electronics, and energy storage. It is an important legislative text in relation to the energy transition and reflects the increasing significance of batteries in this context.

The Regulation was published on July 28 and will enter into force on the twentieth day after its publication. It will be effective from February 18, 2024, with certain obligations having a faded effective date of August 18, 2024. Secondary legislative acts will be presented in the coming years to provide further clarification and rules on various topics.

FutureCar Staff