EU: Final version of Sustainable Batteries Regulation has been agreed

Negotiations on a proposal for an EU Regulation on sustainable batteries have finally concluded and the Regulation will now be published in the Official Journal of the EU.

On 10 July 2023 the Council adopted the Regulation concerning batteries and waste batteries. The Council did not make any amendments to the version adopted by the Parliament on 14 June 2023.

The Regulation applies to all categories of batteries, including portable batteries, starting, lighting and ignition (SLI) batteries, light means of transport (LMT) batteries, electric vehicle (EV) batteries and industrial batteries that are placed on the EU market. It covers the entire battery life cycle, from design and production to reuse and recycling.

In particular, the Regulation:

• introduces labelling and information requirements, among other things on the battery's components and recycled content and an electronic “battery passport” and a QR code;
• requires a carbon footprint declaration for EV batteries, rechargeable industrial batteries with a capacity greater than 2 kWh and LMT batteries. The Commission will need to adopt delegated acts establishing the format for such declaration and the methodology for the calculation and verification of the life cycle carbon emissions of batteries. This has already raised concerns for the car industry as the calculation methods may inherently favour some types of cars over the others. The Commission has not disclosed the draft delegated acts yet;  
• provides that by 2027 portable batteries incorporated into appliances should be removable and replaceable by the end-user at any time during the lifetime of the product. This rule is subject to certain exemptions: batteries in the appliances designed to be exposed to water and intended to be washable as well as certain medical devices may be replaceable, and LTV batteries must be replaceable by independent professionals;
• sets due diligence rules for operators (except for those having a net annual turnover of less than EUR 40 million) who must verify the source of raw materials used for batteries placed on the EU market. Non-compliance with this requirement may lead to restrictions or prohibitions for placing the batteries on the market and, if the non-compliance is serious, withdrawal from the market or recalling;
• sets targets for producers to collect waste portable batteries (63% by the end of 2027 and 73% by the end of 2030);
• introduces a dedicated collection objective for LMT waste batteries (51% by the end of 2028 and 61% by the end of 2031);
• sets a target for lithium recovery from waste batteries of 50% by the end of 2027 and 80% by the end of 2031, which can be amended through delegated acts depending on market and technological developments and the availability of lithium;
• provides for mandatory minimum levels of recycled content for industrial, SLI batteries and EV batteries. These are initially set at 16% for cobalt, 85% for lead, 6% for lithium and 6% for nickel; and
• sets the recycling efficiency target for nickel-cadmium batteries at 80% by the end of 2025 and 50% by the end of 2025 for other waste batteries.

Within two years, Member States shall lay down rules on penalties for breaches of the Regulation which shall be effective, proportionate, and dissuasive.

The Regulation has been criticised for the scope and amount of delegated and implementing acts required for its implementation. The Commission noted that it “regrets the short deadlines” to adopt secondary legislation and noted that the implementation of the Regulation will require significant resources in the Commission. Recharge, the EU industry association for advanced rechargeable and lithium batteries, stated in their press release that it “remains supportive during the development of the secondary legislation” and, in particular, is “looking forward to the Commission’s guidelines to support the implementation of Article 11 on the removability and replaceability of batteries” which it is closely following.

The Regulation repeals the EU Batteries Directive 2006/66/EC and amends Regulation (EU) 2019/1020 on market surveillance and compliance of products.

It will now be published in the Official Journal of the EU and will enter into force 20 days after. 

It shall generally apply 6 months after the date of the entry into force, save for certain requirements for which gradual implementation is provided.   

NOTE ADDED ON 31/07/23: The Sustainable Batteries Regulation was published in the Official Journal of the EU on 28 July 2023.