Column 2025.02.21

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 set of rules that comprehensively regulate the entire lifecycle of batteries, from Manufacturing to disposal. Aiming to ensure sustainability, this regulation covers the entire product lifecycle, requiring manufacturers to disclose greenhouse gas emission amount (carbon footprint: CFP) from Manufacturing to disposal (excluding use), as well as mandate responsible material sourcing (due diligence: DD) in resource mining and refining processes, and regulations on recycling. Companies in the battery supply chain must comply, as failure to meet these requirements will prevent them from launching vehicles on the European market. Starting February 18, 2025, disclosure of CFP information will be required for onboard batteries for electrified vehicles*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 law.

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 battery demand currently expanding rapidly, a new framework to comprehensively regulate the battery Industry was needed. This transition to regulation means that it sets more specific goals than the previous Battery Directive and Settings stricter standards for batteries overall. 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 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.
Digitalization and Battery Passports
The battery will be given a QR code, and information such as the place of Manufacturing and lifespan will be registered as an electronic record.
Promoting the use of recycled materials
Minimum targets will be Settings for recycled content of cobalt, lead, lithium and nickel.

4. Companies subject to the EU Battery Regulation and when it 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, with each obligation being applied sequentially from 2024.

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

5. Impact on businesses and countermeasures

This regulation affects all companies selling battery-based products 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 begin in February 2024, requiring a review of the Manufacturing processes of related products. This situation calls for drastic action 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 Movements Centered in Germany