In July 2023, the European Union gave the green light to a groundbreaking EU battery regulation, officially named Regulation 2023/1542. The primary goal of this regulation is to bring about a more harmonized set of rules that ensure the sustainability and safety of batteries. This regulation is set to replace the existing Battery Directive (2006/66/EC) that currently governs battery sustainability within the EU. It's worth noting that, when the regulation takes effect on February 18, 2024, there won't be any immediate shifts from the current battery directive. However, brace yourselves for new obligations and requirements gradually making their entrance.

Here's a breakdown of the key facets of this new regulation:

CE Conformity Assessment of Batteries

One of the significant introductions in the regulation is the CE conformity assessment of batteries. This means that all batteries, whether they are integrated into products or sold individually, must carry the CE mark as per this regulation. These CE conformity assessment and marking requirements will kick in on August 18, 2024. It's important to note that, initially, the requirements regarding carbon footprint and recycled content will not be part of the CE marking but will be incorporated at a later stage. Battery manufacturers will primarily shoulder the responsibility for conducting the CE conformity assessment. The requirements for this assessment will differ based on the battery's intended use, falling into five categories:

- Portable batteries

- Light means of transport (LMT) batteries

- Starting, lighting, and ignition (SLI) batteries

- Industrial batteries

- Electric vehicle (EV) batteries

For portable batteries and industrial batteries with capacities below 2 kWh, the CE conformity assessment will involve a self-certification process. For all other batteries, a notified body's involvement will be necessary when the regulation is in full effect.

Battery Passport

The regulation ushers in a new requirement for an individual electronic battery passport for industrial batteries (with a capacity exceeding 2 kWh), EV batteries, and LMT batteries (like e-bike batteries). This electronic record will contain vital battery information, such as the battery manufacturer's details and the battery's place of manufacture, along with the battery's data sheet. The goal here is to enhance transparency across the supply and value chains, facilitating information exchange about each battery specimen. The electronic passport will be accessible via a QR code affixed to the battery. This battery passport obligation will take effect on February 18, 2027, with battery manufacturers being responsible for its implementation.

Supply Chain Due Diligence Obligations

Companies, particularly battery manufacturers and importers, will be subject to supply chain due diligence obligations if their batteries contain cobalt, natural graphite, lithium, or nickel. Small companies with a net turnover under 40 million EUR, or those not part of a group exceeding this threshold on a consolidated basis, are exempt from this requirement. The obligations include:

- Adopting and communicating a company due diligence policy for batteries

- Establishing robust company management systems to support the due diligence policy

- Identifying and assessing risks in the upstream supply chain

- Designing and implementing a strategy to address identified risks

Third-party verification, performed by a notified body, will be mandatory for due diligence policies and their implementation in the management system. The supply chain due diligence obligation will take effect on August 18, 2025.

Extended Producer Responsibility and Registration

The regulation reaffirms extended producer responsibility for batteries, making companies that introduce batteries to the market responsible for end-of-life collection and treatment within member states. New collection rate and recycling efficiency targets are set in the regulation, becoming applicable from August 18, 2025.

Material Recovery Rates

Targets for material recovery, focusing on cobalt, copper, lead, lithium, and nickel in recycling and treatment facilities of batteries, are introduced. These targets will come into play from December 31, 2027.

Replaceability of Batteries

The regulation emphasizes that portable batteries should be easily removable and replaceable by end-users, while LMT batteries and their cells should be easily replaceable by independent professionals. These requirements will be in effect from February 18, 2027.

In essence, this new EU Battery Regulation brings a wave of changes and opportunities to foster sustainability and safety in the battery industry. As it rolls out, it's crucial for all stakeholders to stay informed and prepare for these evolving requirements that will shape the future of batteries in the European Union.

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