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What is the EU Battery Regulation? A simple explanation of the background and application period

table of contents

Introduction

The EU Battery Regulation (also known as the EU Battery Regulation), adopted by the European Council in July 2023, is a new rule that comprehensively regulates the entire life cycle of batteries, from Manufacturing to disposal. The regulation aims to ensure sustainability and covers the entire life cycle of products, including the obligation to display greenhouse gas emission amount (carbon footprint: CFP) from Manufacturing to disposal (excluding use), responsible material sourcing (due diligence: DD) in resource mining and refining processes, and recycling regulations. Companies in the battery supply chain are required to comply with the regulations, as vehicles will not be able to be sold in the European market if they do not meet the requirements. Disclosure of CFP will be required for batteries used in electric vehicles (from February 18, 2025) * 1, and this applies not only to BEVs, but also to HEVs, PHEVs, and FCEVs.

* 1: After that, all batteries sold within the EU, including Industry batteries and portable batteries, are expected to be subject to the regulations.

This article provides an overview of the EU Battery Regulation and the responses required of companies.

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1. Background to the establishment of the EU Battery Regulation

The EU Battery Regulation was enacted to address concerns over global environmental issues and resource depletion. As demand for batteries increases, the environmental burden caused by waste disposal and raw material mining is becoming more serious, making it urgent to ensure transparency throughout the supply chain. The regulation aims to improve sustainability in the battery Industry by setting regulations for the entire life cycle of batteries, from the procurement of raw materials to disposal.

2. What is the difference from the previous Battery Directive?

The previous Battery Directive (2006/66/EC) was criticized for its insufficient scope and regulatory Contents. However, with the current rapid expansion of battery demand, a new framework to comprehensively regulate the battery Industry is now necessary. This transition to regulation means that more specific goals have been set than in the previous Battery Directive, and stricter standards have been Settings for batteries in general. Examples include the requirement to calculate the carbon footprint (CFP) during the Manufacturing stage and the implementation of due diligence (DD) in raw material procurement, and this is positioned as the foundation for supporting a sustainable economy in Europe.

3. Main points of the regulations

Carbon Footprint (CFP) Disclosure Requirements
From February 18, 2025, CFP disclosure will be mandatory for batteries installed in electric vehicles (BEV, HEV, PHEV, FCEV). Based on the Product Environmental Footprint Category Rules (PEFCR), CO2 emission amount over the entire life cycle must be calculated.
Responsible Sourcing
Due diligence (DD) is conducted on the mining and refining of materials such as cobalt, nickel, lithium and natural graphite.
Labor rights and environmental impacts must be assessed through third-party verification.
Digitalisation and the Battery Passport
A QR code will be assigned to the battery, and information such as the place of Manufacturing and its lifespan will be registered as an electronic record.
Promoting the use of recycled materials
Minimum targets will be Settings for the use of recycled materials for cobalt, lead, lithium and nickel.

4. Companies subject to the EU Battery Regulation and when they will come into effect

Target companies

The EU Battery Regulation covers all batteries sold within the EU, regardless of shape, volume, weight, design, material composition, chemical composition, use or purpose, including the following Category:

Battery type	explanation
Portable Battery	Used for mobile phones, laptops, power tools, etc.
Starting, lighting and ignition batteries (SLI batteries)	Used to start engines of automobiles, motorcycles, etc.
Light Transport Batteries (LMT Batteries)	Used for electric bicycles, electric scooters, electric motorcycles, etc.
Electric vehicle batteries	Used in electric and plug-in hybrid vehicles
Industry Batteries	Used in forklifts, electric wheelchairs, power storage systems, etc.
Incorporated into the product or batteries designed to be added to the product	Used in toys, home appliances, medical equipment, etc.

This regulation aims to reduce the environmental impact at each stage, from battery Manufacturing , use and recycling, and is said to be particularly relevant to the EV and Industry .

Start date of application

The regulations will come into effect on August 17, 2023, and each obligation will be applied sequentially from 2024.

February 18, 2024: Some obligations begin to apply.
18 August 2024: Carbon footprint declaration will become mandatory for Industry batteries and electric vehicle batteries.
18 February 2025: The obligation to declare the carbon footprint of electric vehicle (EV) batteries will come into effect.
18 August 2028: The mandatory disclosure of the percentage of recycled material used will be required for rechargeable Industry batteries with a capacity over 2kWh (excluding those with only external storage), electric vehicle batteries and SLI batteries.

5. Impact on businesses and countermeasures

This regulation affects all companies selling products that use batteries in the European market. Failure to comply with the regulation may result in restrictions on sales in the European market. The scope of application has been expanded compared to the previous Battery Directive, and in addition to automotive and Industry batteries, batteries built into products are also subject to the regulation. Furthermore, the application of CE marking is scheduled to start in February 2024, which will require a review of the Manufacturing process of related products. This is a situation that calls for drastic measures for Japanese companies exporting automobiles and electronic devices.

The following points are particularly important:

CFP disclosure support

The aim is to reduce the environmental impact throughout the entire life cycle of batteries, from Manufacturing to disposal, and calculation and reporting of carbon footprints (CFP) is mandatory, particularly for automakers and parts Industry. In addition, the introduction of responsible raw material sourcing policies (DD), such as a battery passport registration system and meeting standards for recycled material content, is also required. If these requirements are not met, there is a risk of reduced competitiveness in the European market and export suspension.

Ensuring transparency of material procurement throughout the supply chain

The regulations require disclosure of information from raw material procurement to Manufacturing, distribution and disposal, and require thorough human rights and environmental due diligence (DD). Japanese companies are required to properly manage data throughout their supply chains and to formulate specific response policies. In particular, when procuring mineral resources and using recycled materials, it is important to ensure that procurement does not involve conflict minerals or environmental destruction, and close cooperation with business partners and partner companies is essential.

summary

The EU Battery Regulation will drive sustainability initiatives but will also pose new challenges for companies, but it will also provide an opportunity to increase competitiveness by complying with the regulation and implementing sustainable operations.

" Zeroboard for batteries" helps automotive OEMs and their suppliers comply with EU Battery Regulation .

This solution enables CFP (carbon footprint) calculations in accordance with EU Battery Regulation, management of human rights and environmental due diligence, and data integration with the supply chain data integration platform "Ouranos Ecosystem" led by the Ministry of Economy, Trade and Industry.

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<Source>
European UnionREGULATION (EU) 2023/1542 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 July 2023 concerning batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing Directive 2006/66/EC
Japan External Trade Organization (JETRO) EU battery regulations and battery production and recycling trends centered around Germany