Firms must pay attention to changes in new EU Batteries Regulation

The new Batteries Regulation, which will apply from 18 February 2024, takes a comprehensive, full lifecycle approach in one legal instrument, but must avoid creating barriers to trade or distorting competition – all while safeguarding the integrity of the EU internal market. That is quite a big task.

Batteries are an important source of energy and one of the key enablers for sustainable development, green mobility, clean energy, and climate neutrality. It is expected that the demand for batteries will grow rapidly in the coming years, with a projected 14-fold global increase by 2030. The EU could contribute up to 17% of this demand. This growth is primarily due to the electrification of transportation, which will also lead to a proportional increase in the need for raw materials for batteries.

By 2027, the Batteries Regulation, introduced as part of the EU’s European Green Deal – which aims to reach net zero carbon emissions by 2050 while decoupling economic growth from resource use – will have gradually replaced the previous requirements under the current Batteries Directive. That Directive was implemented in Germany through the German Battery Act (Batteriegesetz).

The Batteries Regulation will change the known regulatory battery regimes that are already established. Because of this, all actors at all market levels dealing with batteries should have a good look at the new Regulation, assess their partly changed existing or new obligations, and how they can achieve compliance with it.

Key Batteries Regulation requirements

The Batteries Regulation lays down requirements on sustainability, safety, labelling, marking and information to allow the placing on the market of batteries within the EU. While aiming for more sustainable, circular and safe batteries, this will impact the environmental compliance of different economic operators. It addresses all aspects of batteries' life cycles, from sourcing and manufacturing to use and recycling, and requires future batteries to have reduced carbon footprints, fewer harmful substances, and diminished reliance on non-EU raw materials.

New battery categories

In an important change, the new rules now contain a total of five battery categories. The Batteries Regulation will apply to ‘portable’ batteries, ‘light means of transport’ (or ‘LMT’) batteries, ‘starting, lighting and ignition’ (or ‘SLI’) batteries, ‘industrial’ batteries and ‘electric vehicle’ batteries. The Regulation foresees various rules for battery manufacturers, producers, suppliers, importers and distributors, but also for waste management operators, recyclers, authorities and end-users.

Battery labelling

Battery labelling will be comprehensively regulated and gradually expanded under the Batteries Regulation. Labels will have to contain detailed information indicating the carbon footprint of the battery and declaring the carbon footprint performance class to which the relevant battery model corresponds. These carbon footprint limits and performance classes will be gradually introduced.

Moreover, the new Batteries Regulation introduces QR codes on and digital passports for specific batteries. Battery labelling will include the conformity assessment procedure for obtaining the CE marking and the corresponding obligations of economic operators.

Recycling targets

Recycling targets will be introduced, requiring all waste batteries to be recycled, with priority placed on the recovery of critical raw materials like lithium, cobalt, and nickel. Eventually, end-users will be able to replace portable battery components to prolong product lifecycles and encourage re-use which means that it will be possible to remove and replace all portable batteries installed in devices.

Due diligence responsibilities

The Batteries Regulation will also enforce new mandatory due diligence responsibilities on companies with a net turnover of more than €40 million. The responsibilities include identification and mitigation of environmental and social risks linked to raw materials used in batteries.

Regarding the social risk categories, battery due diligence policies should address the risks in relation to the protection of human rights, including human health; community life – including that of indigenous peoples – and the protection of children and gender equality, in line with international human rights law. As regards the environmental risk categories, battery due diligence policies should address risks to the protection of the natural environment and biological diversity.

Environmental impact

According to the Batteries Regulation, so-called ‘contracting authorities’ – such as EU member states, regional or local authorities, or other bodies governed by public law – must take account of the environmental impacts of batteries over their life cycle with a view to ensuring that such impacts are kept to a minimum.

The Regulation also lays down requirements for green public procurement when procuring batteries or products into which batteries are incorporated. The rules also give the European Commission the power to adopt various so-called ‘delegated acts’ to lay down more detailed requirements in future.