EU Battery Regulation to Replace Battery Directive 2006/66/EC

What You Need to Know About the New EU Battery Regulation

On December 15, 2020, the European Commission released a new Battery Regulation proposal as an update to the EU's Batteries Directive (2006/66/EC). In July 2023, the new EU battery regulation (Regulation 2023/1542) was approved. This regulation aims to create harmonized legislation for the sustainability and safety of batteries, with a particular emphasis on lithium-ion batteries. It introduces several legislative measures to enhance the existing framework, aiming to improve battery sustainability and safety across the EU.

The proposed regulation is currently being discussed between the Council of the EU, the Parliament, and the European Commission to reach an agreement on the final text.

Key Changes in the New Battery Regulation

Sustainability and Safety Requirements:

The new regulation will replace the Battery Directive (2006/66/EC) that has been in force since 2008. The existing directive focuses on promoting the safe, effective, and environmentally friendly use of batteries, specifying requirements for materials, design, functionality, and disposal. It targets hazardous elements such as mercury, cadmium, and lead, which can harm the environment and human health when incinerated or landfilled.

CE Conformity Assessment:

The new regulation introduces a CE conformity assessment for all batteries, whether used in a product or supplied separately. This requirement means that all batteries need to be CE marked according to the regulation, starting from August 18, 2024. Initially, carbon footprint and recycled content requirements will not be part of the CE marking but will be added later.

Battery Categories:

The regulation defines five battery categories based on their use:

• Portable batteries: Batteries used in handheld devices and easily portable.
• Light means of transport (LMT) batteries: Batteries used in e-bikes, scooters, and other light transportation devices.
• Starting, lighting, and ignition (SLI) batteries: Batteries used primarily in vehicles for starting engines, lighting, and ignition.
• Industrial batteries: Batteries designed for industrial applications with various capacities and uses.
• Electric vehicle (EV) batteries: Batteries used in electric vehicles.

The CE conformity assessment is a self-certification process for portable batteries and industrial batteries with a capacity of less than 2 kWh. For all other batteries, a notified body will need to be involved when the regulation is in full effect.

Battery Passport:

The regulation introduces requirements for an individual electronic battery passport for each industrial battery (with a capacity of more than 2 kWh), EV battery, and LMT battery. This electronic record will include general information about the battery, such as the manufacturer and the manufacturing location, and will be accessible via a QR code on the battery. The battery passport requirement will start on February 18, 2027. The goal of the battery passport is to enhance transparency along the supply and value chains for all stakeholders and to aid the exchange of information regarding each battery sample.

Supply Chain Due Diligence Obligations:

Supply chain due diligence is mandated for companies that first make batteries available on the EU market if the battery contains cobalt, natural graphite, lithium, or nickel. Companies must adopt and communicate a due diligence policy, establish strong management systems, identify and assess supply chain risks, and implement strategies to respond to these risks. Third-party verification of these policies will be required from August 18, 2025.

Key requirements for companies include:

• Adopting a due diligence policy: Companies must establish and communicate a policy outlining their commitment to responsible sourcing of battery materials.
• Establishing strong management systems: Companies need to set up robust systems to support the implementation of the due diligence policy.
• Risk identification and assessment: Companies must identify and assess risks in their upstream supply chain related to the sourcing of cobalt, natural graphite, lithium, or nickel.
• Implementing risk response strategies: Companies need to design and implement strategies to address identified risks.

Extended Producer Responsibility and Registration:

Extended producer responsibility and registration obligations, which already exist under the current directive, will continue under the new regulation with updated targets for collection rates and recycling efficiencies. These requirements will apply from August 18, 2025.

Extended producer responsibility means that companies that first make batteries available on the market in a member state are responsible for the end-of-life collection and treatment of the batteries in that member state. This includes ensuring proper recycling and disposal of batteries to minimize environmental impact.

Material Recovery Rates:

The regulation sets targets for the recovery of cobalt, copper, lead, lithium, and nickel in recycling facilities, effective from December 31, 2027. These targets aim to increase the recycling efficiency of these materials and reduce the environmental impact of battery disposal.

Replaceability of Batteries:

Portable batteries must be easily removable and replaceable by the end-user, while LMT batteries and their cells must be removable and replaceable by an independent professional. These requirements will start on February 18, 2027. This ensures that batteries in consumer products can be replaced without significant technical knowledge, promoting longer product lifespans and reducing electronic waste.

Timeline for Implementing the Proposed Battery Regulation

The timeline for implementing the new battery regulation is as follows:

• January 1, 2022: Expected effective date if the regulation is adopted.
• July 1, 2023: The current Batteries Directive would become invalid, with some exceptions.
• February 18, 2024: New regulation starts to apply, initially with no change compared to the current battery directive.
• July 2024: Carbon footprint declaration required.
• August 18, 2024: CE conformity assessment and CE marking requirements start to apply.
• August 18, 2025: Supply chain due diligence obligation starts to apply.
• August 18, 2025: Updated extended producer responsibility and registration requirements apply.
• January 2026: Battery passport requirement for industrial and electric vehicle batteries with capacities higher than 2 kWh, and potential introduction of an Electronic Exchange System (EES).
• January 2026: Carbon intensity performance class label required.
• January 2027: Declaration of recycled content for industrial and electric vehicle batteries.
• July 2027: Compliance with maximum carbon thresholds.
• December 31, 2027: Targets for material recovery of cobalt, copper, lead, lithium, and nickel in recycling facilities start to apply.
• January 2030: Compliance with minimum recycled content thresholds (12% cobalt, 85% lead, 4% lithium, and 4% nickel).
• January 2035: Increased recycled content thresholds (20% cobalt, 85% lead, 10% lithium, 12% nickel).

Conclusion

The new EU Battery Regulation represents a significant step forward in ensuring the sustainability, safety, and traceability of batteries within the European Union. By updating the existing Batteries Directive, this regulation addresses the evolving challenges and opportunities in the battery sector, promoting a more sustainable and responsible approach to battery production and usage. As the regulation is implemented, stakeholders across the battery value chain will need to adapt to new requirements and obligations to comply with the EU's ambitious sustainability goals. This comprehensive approach aims to reduce environmental impact, improve safety standards, and enhance transparency and accountability within the industry.