ESG Quick Guide: EU Sustainable Batteries Regulation

The EUBR imposes (among other things):

• requirements on those placing or putting into service batteries on the EU market;

• to set up and implement due diligence policies and management systems;

• for the purposes of identifying, preventing and addressing actual and potential social and environmental risks linked to the sourcing, processing, and trading of the raw materials and secondary raw materials required for battery manufacturing. 

The Sustainable Batteries Regulation 2023 repeals and replaces the Batteries Directive 2006. 

It is an important part of the EU’s wider circular economy strategy.

The due diligence requirements under the EUBR were originally intended to apply from 18 August 2025.

The EU proposed the Omnibus IV simplification package on 21 May 2025. This included a proposal to delay the due diligence requirements. The “Stop the Clock” Regulation delaying the due diligence requirements was published in the Official Journal of the EU on 30 July 2025 and delayed the compliance requirement to 18 August 2027. The Commission’s obligation to publish supporting guidance was also postponed to 26 July 2026.

Further amendments to the EUDR were proposed as part of the Omnibus IV package, including expanding the exemption. At present, companies with a net turnover of less than EUR 40m (on an individual or consolidated basis) are exempt. The Omnibus IV simplification package proposed expanding this threshold to EUR 150m. This element of the proposal has not progressed far. 

For more information on the Omnibus IV, see our EU Omnibus Tracker.

Mandatory 

Post-Omnibus IV simplification package, the EUBR due diligence requirements apply from 18 August 2027. 

The due diligence requirements apply to:

• economic operators (e.g., manufacturers, authorised representatives, importers, distributors and fulfilment service providers);

• with a net turnover of more than EUR 40m (on an individual or consolidated basis);

• suppling for the first time for distribution or use (in the course of a commercial activity, whether for free or charge) or using for the first time (in instances where they have not been supplied), batteries on the EU market. 

The requirements do not apply to economic operators in respect of placing batteries on the market or putting batteries into service that are being or have been repurposed, reused or remanufactured (after having already been placed on the market or put into service).

The relevant obligations are set out in Article 48 (battery due diligence policies), Article 49 (economic operator's management system), Article 50 (risk management) and Article 52 (disclosure on due diligence policies).

Those in-scope of the due diligence requirements must:

• Adopt battery due diligence policies. Adopt and communicate a due diligence policy that covers the raw materials listed in point 1 of Annex X (e.g., cobalt, lithium, nickel) and the associated environmental and social risks in point 2 of Annex X (e.g., environment, climate and human health, human rights, labour rights and industrial relations and community life). 

  These policies should be based on internationally recognised due diligence instruments (e.g., UN Guiding Principles and OECD Guidelines for Multinational Enterprises). 

  They must be verified by an accredited (under the EUBR) third-party for compliance with the EUBR requirements and their implementation should be periodically audited. 

  Responsibility for oversight of the policy should be assigned to top level management. 

• Chain of custody/traceability system. Establish and operate a system of controls that identifies upstream actors in the supply chain and collates detailed, prescribed information (e.g., raw material name, type and quantity; name and address of supplier; raw material country of origin and chain of transactions since extraction).

• Contractual clauses. Incorporate the battery due diligence policy and associated risk management measures into supply agreements. 

• Grievance mechanism. Establish UNGP-based mechanisms to allow for the receipt and remediation of complaints (or provide for such a mechanism through collaborative arrangements or by facilitating recourse to an external body).

• Identify, assess and prevent, mitigate or address adverse impacts. Identify and assess, including based on information collated as part of the chain of custody, risks of adverse impacts in the supply chain (associated with the risks in point 2, Annex X) and design and implement a strategy to respond to them. 

  Such a strategy should consider internationally recognised due diligence standards, the company’s leverage over suppliers, the development and implementation of a risk management plan and the suspension or discontinuance of engagement with a supplier. Efforts will be subject to the third-party audit referenced above.

• Retain documents. Keep documentation demonstrating compliance with the requirements (including verification and audit reports) for 10 years after the last battery manufactured under the relevant policy has been placed on the market. 

• Report. Companies must: (i) provide information to relevant authorities on request; (ii) share the information gathered as part of due diligence with immediate downstream purchasers (subject to business confidentiality and competition concerns); and (iii) report publicly each year on the policy and implementation of the obligations. 

The Commission is required, by 26 July 2026, to publish guidelines on the application of the due diligence requirements. These should be line with existing international instruments and soft law standards. 

The EUBR provides for the recognition of government, industry association or other due diligence schemes. Recognised schemes provide a way to demonstrate compliance (although it should be noted that in other regimes where this set up exists, the Commission has been slow to recognise any such schemes). 

EU Member States can require companies to put an end to identified non-compliances.

If issues persist and there is no other effective means available to end a non-compliance, Member States can take all appropriate measures to restrict or prohibit the batteries from being made available on the market (and if the non-compliance is serious, ensure they are withdrawn or recalled from the market). 

Other penalties may be provided for at Member State level.

• EUBR

• Batteries “Stop the Clock” Directive

• EUBR Q&A

• Final version of Sustainable Batteries Regulation has been agreed

• EU Regulation delaying due diligence rules for batteries published in the OJEU

• EU Omnibus Tracker: simplification of sustainability rules (see Fourth Omnibus / Omnibus IV section)

• Other ESG Quick Guides