EU sustainable batteries regulation now in effect

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 effect later this month and will be implemented from February 18, 2024. The Regulation aims to promote the sustainability of batteries throughout their entire life cycle and adds to the growing legislation on supply chain compliance. It applies to all types of batteries, from industrial batteries to those used in electric vehicles, and covers recycling, labelling, and due diligence requirements. In this article, we will explore what this new law means for companies.

The new Batteries Regulation replaces the existing EU Batteries Directive and focuses on three priorities: strengthening the functioning of the internal market, promoting a circular economy, and reducing the environmental and societal impact of batteries. It sets standardized rules for battery products, processes, waste batteries, and recyclates.

The Regulation lays down requirements for economic operators who place batteries on the market or put them into service in the European Union. This includes batteries imported from non-EU countries. It applies to various categories of batteries, including those used in electric vehicles, light transport, industrial applications, waste portable batteries, and starting, lightning, and ignition batteries. Economic operators refer to manufacturers, importers, distributors, and other individuals or entities involved in the battery supply chain.

Chapter VI of the Regulation outlines specific obligations for manufacturers, importers, and distributors. Notably, it introduces extended producer responsibility, requiring producers to finance the costs of collecting, treating, and recycling batteries, conducting compositional surveys of mixed 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's goals by aiming to protect the environment and reduce pollution through increased circularity in batteries. It sets new targets for the collection of waste portable batteries and waste batteries for light means of transport. By the end of 2031, 80% of lithium from waste batteries should be recovered, and mandatory minimum levels of recycled content will be required for lithium, cobalt, lead, and nickel in new batteries. Additionally, portable batteries used in appliances should be removable and replaceable by the end-user.

In terms of the single market, the Regulation introduces harmonized rules on safety, sustainability, and labelling requirements. Hazardous substances like mercury and cadmium will have tighter restrictions, and the carbon footprint of batteries must be disclosed. Labels will provide information on components, battery lifetime, and recycled content. A digital product passport and a QR code linking to battery composition information will also be required.

The Regulation includes supply chain due diligence requirements that economic operators must comply with. These requirements are similar to other supply chain legislation and involve verifying the source of raw materials, determining internal responsibilities, third-party verification, and publishing due diligence policies. Non-compliance can result in restrictions on market availability and sanctions imposed by member states.

Companies across various sectors, such as aerospace, automotive, electronics, and energy storage, will be significantly impacted by the Regulation. It is a key legislative text in relation to the energy transition and reflects the growing importance of batteries in this context.

The Regulation was published in the Official Journal of the EU on July 28 and will come into force on February 18, 2024. Certain key obligations, such as due diligence, will have a faded effective date of August 18, 2024. While the Regulation is directly applicable in each member state, individual discretion is allowed for sanctions in case of non-compliance. Further clarification and rules will be provided through secondary legislative files in the coming years.

FutureCar Staff