BATTERIES
The EU Batteries Regulation: what it means for manufacturers
Since 2006, the EU has regulated the batteries sector, including common obligations for economic operators and environmental performance, through the Batteries Directive.
H
owever, as technology advanced, the Directive increasingly failed to address new developments adequately. Therefore, the new EU Batteries Regulation (2023/1542), entering into force in 2023, marks a significant shift by considering the entire life cycle of batteries, from sourcing materials to end-of-life disposal. While the Regulation serves as a comprehensive approach towards sustainability throughout the battery life cycle, it also imposes significant obligations on economic operators such as manufacturers placing batteries on the market or putting them into service in the EU. While some specific obligations of the Regulation have already begun to take effect, other provisions, such as the digital battery passport and recycling efficiency standards, will become binding in the coming years as policymakers continue to develop the implementing legislation. Some of the most immediate implications for the economic operators to demonstrate compliance with the sustainability and safety requirements came into place in August 2024. The batteries must undergo a conformity assessment procedure, which will be necessary for acquiring the EU declaration of conformity. Drawing up certain technical documentation and ensuring safety information, as well as affixing the CE marking, is needed to declare compliance with the Regulation. It must be noted that the European Commission will adopt an implementing act on the
specificities of the labelling requirements by August 2025. The labelling provisions will impose new additional requirements. However, technical rules are still under discussion regarding the need to label all hazardous substances and whether the label will benefit from already standardised symbols, among others.
August 2025 also marks new provisions on due diligence policies. Economic operators with an annual revenue of €40 million or more will need to establish battery due diligence policies concerning raw materials such as cobalt, natural graphite, lithium, nickel and other chemical compounds. Companies should begin evaluating and improving their due diligence and risk management practices now, as the requirements encompass provisions related to management systems, risk management, disclosure and third-party verification. More crucially, to encourage
decarbonisation of battery manufacturing, electric vehicle and industrial batteries will need to come with a carbon footprint declaration, documenting the climate footprint of the battery across its life cycle. In the next few years, carbon footprint thresholds will determine market access, preventing batteries that are not manufactured in a climate-friendly way from being sold in Europe; a rule also aimed
16 SEPTEMBER 2024 | ELECTRONICS FOR ENGINEERS
at advantaging domestic battery producers. The exact level of this “climate barrier” for accessing the EU market is currently the subject of thorny discussions.
The Batteries Regulation will also lead the way for the digitisation of product supply chains in Europe. As of January 2027, most batteries placed on the market must come equipped with a “battery passport”, allowing customers to access all types of product data, from the origin of the raw materials and the conditions in which they were sourced to performance and durability. Furthermore, by 2031, manufacturers will need to meet minimum values for the share of key materials such as lithium and cobalt in new batteries that must come from recycled sources. Together with rules on the efficiency of recycling processes, those recycled content targets will curb Europe’s dependency on freshly mined raw materials. The new Batteries Regulation is an important milestone for transforming the battery industry. The new rules will affect a wide range of businesses such as manufacturing, distribution, recycling and retail. Therefore, for economic operators it is essential to incorporate the new rules into their business strategies to make changes in production processes and supply chain management.
https://www.eurobat.org/
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