On July 10^th, the European Council adopted new regulation which promotes the sustainable disposal of waste batteries and encourages sustainability rules for the production and sale of new batteries. These new rules contribute to the wider goals of the bloc’s ambition to accelerate the green transition, known more commonly as the European Green Deal. Moreover, the reduced dependency on third countries for supplies and recycling capacity allows the bloc to tap the valuable resources from waste batteries and reuse them for other critical purposes such as the production of next-gen solid-state and alkaline battery systems. [1]

Included within the new regulation, the new rules will cover the entire life cycle of all types of batteries sold and disposed of in the European Union. These will include waste portable batteries, electric vehicle batteries, industrial batteries, starting, lightning and ignition (SLI) batteries and batteries for light transport vehicles.

Context

Originally proposed by the Commission in December 2020, the recently introduced ‘Batteries Regulation’ falls under the wider objectives that the European Green Deal sets to achieve. The shift from non-renewables to renewables is an ongoing debate at the European level whereby part of Europe’s growth strategy and transition involves shifting to electromobility which is one of the prerequisites for reaching the Bloc’s climate neutrality goals by 2050. For the Bloc to deliver on lowering carbon emissions so it needs to be ensured that all battery products marketed and sold in the Union are also sourced, manufactured, and disposed of in a sustainable manner.

Batteries are a crucial energy source driving sustainable development, green mobility, clean energy, and climate neutrality. Anticipated growth in battery demand, particularly for electric vehicles and lightweight transportation, underscores the global strategic significance of the battery market. With the ongoing scientific advancements this will further add and enhance battery technology across the rest of the decade. [2]

Recognizing batteries’ strategic importance, it’s imperative to establish regulations covering battery sustainability, performance, safety, collection, recycling, second-life usage, and user information. A unified regulatory framework was therefore needed to manage the entire battery lifecycle within the EU’s market. Additionally, updating EU law regarding waste battery management is essential to safeguard the environment and human health, reduce waste-related impacts, optimize resource use, and advance towards a circular, climate-neutral, and toxic-free economy. Additionally, these measures support long-term EU competitiveness, strategic autonomy, and economic opportunities while aligning circular economy principles with energy, climate, transport, industry, and research policies. They also contribute to environmental protection and greenhouse gas emission reduction. [3]

With the introduction of this new regulation, most of the obligations will not apply initially, but will enter into force over a transitional period. The current Batteries Directive will only be repealed as of 24 months after the entry into force of the new Batteries Regulation. The legislation will now look to create a harmonized regulatory framework for batteries that deals with their entire life cycle by setting out rules on their sustainability, performance, safety, collection, recycling and second life, as well as information about batteries. [4]

Key provisions

First, restrictions on hazardous substances. The new Batteries Regulation restricts the use in batteries of certain substances such as Mercury, Cadmium, and Lead. These substances which fall under the Restriction on substances in Annex I can be amended by the Commission through delegated acts if there is an unacceptable risk to human health or the environment that is not adequately controlled and needs to be addressed on an EU-wide basis.

Second, carbon footprint of certain batteries. To mitigate the impact of batteries on climate change, the Batteries Regulation requires rechargeable industrial batteries with a capacity greater than 2 kWh, LMT batteries and electric vehicle batteries to be accompanied by a carbon footprint declaration (until it becomes accessible via QR code). This declaration shall be drawn up for each battery model per manufacturing plant.

It must also bear a label indicating the carbon footprint of the battery and the carbon footprint performance class of the relevant battery model per manufacturing plant. The Commission will establish carbon footprint performance classes and thresholds via a delegated act.

Finally, it must also observe the maximum life cycle carbon footprint thresholds. The declared life cycle carbon footprint value shall stay below the maximum life cycle carbon footprint threshold to be established by the Commission in a delegated act.

Third, the Batteries Regulation also aims to enhance critical raw material recovery from battery waste. Requirements for industrial, and electric vehicle use include information disclosure on cobalt, lead, lithium, and nickel recycling. Batteries will be required to have docs indicating the percentage of cobalt, lithium, or nickel from manufacturing/post-consumer waste and the percentage of lead recovered annually per battery model and plant. Moreover, there will be mandatory targets for recycled cobalt, lead, lithium, and nickel, enforced a few months after disclosure.

Fourth, by 2026, all batteries will need to bear general labels and a separate collection symbol and by 2027, they should have a QR code for a battery passport (LMT, some industrial, and EV batteries) or relevant info (other batteries). Furthermore, rechargeable portables, light means of transport batteries (LMT), and (SLI) batteries will need a label indicating charging capacity. Moreover, non-rechargeable portables will now also be required to show average duration for specific applications, stating ‘non-rechargeable.’ And batteries with minimum cadmium/lead and other harmful and restricted substances will need to bear a symbol. [4]

Finally, on battery waste management, the new Batteries Regulation will foresee end-of-life provisions on the basis that collection should be separate and maximized, and recycling should be efficient. Other key measures include a national producer register, extended producer responsibility, elevated collection targets (including specific goals for different types of batteries), recycling efficiency and material recovery targets, waste battery transportation guidelines, and mandatory reporting to authorities to ensure waste processes are dealt with in sustainable manners. [5]

In the coming years, as the Batteries Regulation gradually comes into effect and companies adapt to its requirements, the European Union is poised to witness a shift towards a greener and more sustainable battery industry. This regulatory framework not only aligns with environmental goals but also positions the EU as a leader in responsible battery production, usage, and disposal.

Sources

https://waste-management-world.com/resource-use/eu-council-adopts-new-regulation-on-batteries-and-waste-batteries/

https://www.consilium.europa.eu/en/press/press-releases/2023/07/10/council-adopts-new-regulation-on-batteries-and-waste-batteries/#:~:text=The%20regulation%20sets%20targets%20for,by%20the%20end%20of%202031).

https://data.consilium.europa.eu/doc/document/PE-2-2023-INIT/en/pdf

https://www.mayerbrown.com/en/perspectives-events/publications/2023/07/european-union-adopts-a-new-batteries-regulation

https://environment.ec.europa.eu/topics/waste-and-recycling/batteries_en#:~:text=The%20European%20Parliament%20and%20the,%2C%20markets%2C%20and%20battery%20usages.