On August 17, 2023, the EU’s new battery regulation (Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries) officially entered into force, marking the end of a nearly three-year legislative process. The regulation is a comprehensive and advanced legislation that the EU has adopted to promote the sustainable development and competitiveness of the battery industry, as well as to achieve its climate neutrality goals. The regulation will regulate the entire life cycle of all types of batteries that are placed on the market or put into use in the EU, from raw material extraction to battery use and to waste battery recycling and reuse, ensuring that batteries are safe, efficient, low-carbon and circular.
The EU is one of the largest battery markets in the world, as well as a leader in electric vehicles and renewable energy. With the growing demand for batteries, the EU recognizes the importance of establishing a strong and sustainable battery value chain. Mariya Gabriel, Vice-President of the European Commission, said: “Batteries are key to our green transport and clean energy transition. We need to ensure that the batteries we use meet our environmental and social objectives, while maintaining our competitiveness in the global market.”
The EU’s new battery regulation was proposed after the establishment of the European Battery Alliance in 2017, aiming to update the Battery Directive (Directive 2006/66/EC) adopted in 2006, and to align with other policies such as the European Green Deal, the Circular Economy Action Plan and the New Industrial Strategy. The regulation was proposed by the European Commission in December 2020, and was approved by the European Parliament and the European Council in June and July 2023 respectively.
The regulation contains the following main aspects:
·It introduces sustainability requirements for carbon footprint, recycled content, performance and durability, etc., to reduce the environmental and climate impact of batteries and improve resource efficiency. These requirements will apply to different types and capacities of batteries, especially rechargeable batteries for electric vehicles, light transport vehicles (such as electric bicycles and scooters) and industrial applications (such as energy storage systems).
·It sets out requirements for battery safety and labeling, to protect consumers and users, and provide transparent information on battery characteristics and environmental impact. This information will be provided through QR codes, digital battery passports and online databases, etc., for easy traceability and management.
·It establishes a comprehensive and efficient waste battery recycling system, including stricter waste collection targets, higher material recovery rates, lower risk of illegal exports, and more opportunities for reuse and remanufacturing. In addition, it encourages the use of easy-to-dismantle and replaceable design, to extend battery life and reduce waste.
·It requires all economic operators involved in battery raw material procurement, processing and trade to implement due diligence policies, to ensure that the sources of battery raw materials comply with human rights, social and environmental standards, and avoid using raw materials from conflict areas or illegal mining.
The implementation of the EU’s new battery regulation will have profound implications for various parties involved in battery production, import, distribution, service provision, waste management, etc., both inside and outside the EU. On one hand, the regulation will create new business opportunities and innovation potential for the EU battery industry, enhancing its competitive edge in the global market. On the other hand, the regulation will also impose higher environmental and social standards on battery suppliers outside the EU, especially major exporters such as China, requiring them to accelerate their green transition and adaptation.
