Batteries are an essential material in the energy transition, and the need for them from the EU has been growing rapidly in recent years. A new battery regulation was adopted on 12 July 2023 by the European Parliament and Council, to minimize the environmental impact of this exponential growth in light of new socio-economic conditions, technological developments, markets, and battery use.
As an important outcome of the European Green Deal, this new law replaces the EU Batteries Directive and applies to all EU Member States in the form of a regulation. This law promotes the EU’s circular economy and zero pollution goals and strengthens the EU’s strategic autonomy.
[Legislative history]
The first EU legislation dealing with batteries and waste batteries, which is the EU Batteries and Accumulators Directive (2006/66/EC), was entered into force in 2006. All 27 Member States transposed it into national legislation.
However, as the environmental, social and economic challenges associated with batteries in the EU continue to grow, the European Commission (EC) has proposed an updated battery law to improve on the shortcomings of the 2006 Directive. In line with the European Green Deal and the EU Action Plan for a Circular Economy, the EC has designed a new battery regulation that not only aims to regulate used batteries but also takes into account the entire lifecycle of batteries from design, production, recycling and disposal.
This new regulation was first proposed in December 2020 and the new EU Battery Regulation 2023/1542 came into force on 17 August 2023 after several rounds of negotiations. Some provisions will come into force from 18 February 2024 and others will come into force in the coming years.
[Application scope][1]
The regulations cover five battery types, which are classified according to their use and weight:
• Portable Batteries
• Electric Vehicle (EV) Batteries
• Industrial Batteries, Subcategory
• Light Means of Transport (LMT) Batteries
• Starting, Lighting, and Ignition (SLI) Batteries
These obligations and deadlines are defined for specific types of batteries, which means that battery types are subject to different requirements that require vigilance on the part of the manufacturer.
Image from the article “New EU Batteries Regulation: what it means for manufacturers” https://www.ramboll.com/insights/resource-management-and-circular-economy/new-eu-batteries-regulation-what-it-means-for-manufacturers
[Key changes]
1. Sustainability and safety: carbon footprint and hazardous substance restrictions
All EV batteries, LMT batteries, and rechargeable industrial batteries with a capacity of more than 2 kWh must have a “clear, legible, and indelible” carbon footprint statement and labeling that identifies the amount of recycled cobalt, lead, lithium, and nickel used in the production of the battery. By 31 December 2030, the Commission should assess the feasibility of extending the carbon footprint statement requirement to portable batteries and the maximum life cycle carbon footprint threshold requirement to rechargeable industrial batteries with a capacity of 2 kWh or less.
In addition, the regulation restricts the use of mercury, cadmium, and lead.
2. Supply chain management: due diligence requirements
Except for SMEs, all economic operators selling batteries on the EU market are required to develop and implement a due diligence policy, in line with international standards, to address the social and environmental risks inherent in the sourcing, processing, and trading of raw and secondary materials required for battery production.
In particular, economic operators must develop and clearly communicate to suppliers and the public a due diligence policy on the supply of cobalt, natural graphite, lithium, nickel, and other compounds based on listed raw materials, in accordance with recognized international standards, such as the OECD Due Diligence Guidance and the United Nations Guiding Principles on Business and Human Rights.
3. Labelling and information
Digital Battery Passport: Electric vehicle batteries, LMT batteries, and rechargeable industrial batteries over 2 kWh will require a “digital battery passport” containing information about the battery model, the specific battery, and its use. More generally, all batteries will be required to have a label and QR code detailing their capacity, performance, durability, and chemistry, and displaying a “collect by sorting” symbol.
Labeling changes: All batteries are required to bear the “CE” mark to demonstrate compliance with applicable EU health, safety, and environmental protection standards. The labeling of the batteries included in the device should be directly on the device, clearly visible, and easy to read. This is a departure from the current practice in countries such as the EU and Germany, where the labeling is applied to the battery itself rather than to the whole device.
The labeling and information requirements will be implemented in 2026; however, QR codes will not need to be implemented until 2027.
4. Recycling - end-of-life management
The legislation aims to ensure that batteries are recycled separately and of a high quality. For example, a recent change made by the Council states that battery management systems for electric vehicle batteries should include a software reset function to prevent economic operators from needing to upload different battery management system software when preparing to reuse, repurpose, or remanufacture electric vehicle batteries. This may lead to certain risks, for example for cyber security reasons. Therefore, the Regulation provides that if a software reset function is used, the original battery manufacturer shall not be liable for any impairment of the safety or functionality of the battery that may be attributable to the uploading of the battery management system software after the battery has been placed on the market.
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