In a significant move towards enhancing sustainability and circularity, the Council of the European Union, on 10 July 2023, adopted a new regulation that strengthens rules governing batteries and waste batteries. The regulation encompasses the entire life cycle of batteries, from production to reuse and recycling, and aims to ensure their safety, sustainability, and competitiveness.
Batteries play a pivotal role in the decarbonization process and the EU’s transition towards zero-emission modes of transport. Simultaneously, end-of-life batteries contain valuable resources that can be reused, reducing the dependence on external suppliers. The newly adopted rules are expected to promote the competitiveness of European industry while ensuring the sustainability of new batteries, thereby contributing to the green transition.
The regulation applies to all batteries, including waste portable batteries, electric vehicle batteries, industrial batteries, starting, lightning, and ignition (SLI) batteries primarily used for vehicles and machinery, as well as batteries for light means of transport such as electric bikes, e-mopeds, and e-scooters.
Key aspects of the regulation focus on promoting a circular economy by introducing end-of-life requirements, establishing collection targets and obligations, setting recovery targets for materials, and implementing extended producer responsibility. Producers will be required to collect waste portable batteries at rates of 63% by the end of 2027 and 73% by the end of 2030. Additionally, a dedicated collection objective of 51% by the end of 2028 and 61% by the end of 2031 is introduced for waste batteries from light means of transport.
The regulation also sets recovery targets for lithium from waste batteries, aiming for a recovery rate of 50% by the end of 2027 and 80% by the end of 2031. Furthermore, the regulation establishes mandatory minimum levels of recycled content for industrial, SLI, and electric vehicle batteries, ensuring 16% for cobalt, 85% for lead, 6% for lithium, and 6% for nickel. To verify compliance, batteries will require documentation demonstrating their recycled content.
To enhance the recycling process, the regulation sets a target of 80% recycling efficiency for nickel-cadmium batteries by the end of 2025 and 50% by the end of 2025 for other waste batteries.
Another significant provision of the regulation requires that by 2027, portable batteries incorporated into appliances must be removable and replaceable by end-users, allowing sufficient time for operators to adapt their product designs accordingly. This provision serves to benefit consumers, while light means of transport batteries will need to be replaceable by an independent professional.
In addition to promoting sustainability and circularity, the new rules aim to improve the functioning of the internal battery market, ensuring fair competition through safety, sustainability, and labeling requirements. Performance, durability, and safety criteria will be implemented, along with strict restrictions on hazardous substances such as mercury, cadmium, and lead. The regulation also mandates information on the carbon footprint of batteries and introduces labeling requirements, including details about battery components and recycled content, as well as an electronic “battery passport” and QR code. To allow member states and economic actors sufficient time for preparation, the labeling requirements will come into effect by 2026, while the QR code implementation is set for 2027.
With a focus on reducing environmental and social impacts throughout the battery life cycle, the regulation establishes stringent due diligence rules for operators. They must verify the source of raw materials used in batteries placed on the market, ensuring responsible sourcing. However, small and medium-sized enterprises (SMEs) are exempted from the due diligence requirements.
The adoption of the regulation by the Council concludes the adoption procedure. The next steps involve the signing of the regulation by the Council and the European Parliament, followed by its publication in the EU’s Official Journal. The regulation will come into force 20 days after its publication.
This regulation on batteries is a crucial step in establishing a circular economy within the battery sector, addressing all stages of the battery life cycle from design to waste treatment. It is particularly significant considering the rapid growth of electric mobility, with battery demand projected to increase more than ten-fold by 2030. The new regulation replaces the current batteries directive from 2006 and complements existing legislation, primarily in terms of waste management.
The European Commission initially presented the proposal for the regulation on batteries on 10 December 2020. Following negotiations between the Council presidency and European Parliament negotiators, a provisional agreement was reached and subsequently adopted by the European Parliament in June 2023.
