EU Council adopts battery regulation with recycled-content and collection targets

The Council of the EU adopted a battery regulation on 10 July 2023 covering the full life cycle, with recycled-content minimums, collection targets and a digital battery passport. The rules affect global battery supply chains, carrying direct implications for Indian battery, EV and component manufacturers exporting to the EU.

The Council of the European Union adopted a new battery regulation on 10 July 2023, covering the entire life cycle from production to reuse and recycling for all battery types, including portable, EV, industrial, SLI and light-transport batteries. It sets waste portable battery collection targets of 63% by end-2027 and 73% by end-2030, lithium recovery targets of 50% by end-2027 and 80% by end-2031, and mandatory recycled-content minimums of 16% cobalt, 85% lead, 6% lithium and 6% nickel for industrial, SLI and EV batteries, verified by documentation.

The regulation affects battery producers, EV and electronics manufacturers, recyclers and importers placing batteries on the EU market, with extended producer responsibility and due-diligence obligations to verify responsible raw-material sourcing. From 2027 portable batteries in appliances must be removable and replaceable by users. Carbon-footprint declarations, labelling, a digital battery passport and QR code apply, with labelling from 2026 and QR codes from 2027. Small and medium-sized enterprises are exempted from the due-diligence requirements, while larger operators face full compliance.

Battery and EV value-chain operators should prepare for recycled-content verification, collection and recovery obligations, removable-battery design changes by 2027, and battery-passport and labelling requirements phasing in from 2026 and 2027. The regulation enters into force 20 days after publication in the Official Journal following signing. Indian battery, EV and component manufacturers exporting to the EU should map due-diligence and recycled-content requirements now, given battery demand is projected to increase more than ten-fold by 2030, to maintain EU market access.

Key figure — Recycled-content minimum: 16% cobalt for industrial, SLI and EV batteries