EU batteries regulation takes effect

Key points
  • Regulation (EU) 2023/1542 on batteries and waste batteries entered into force on 17 August 2023.
  • Its rules generally apply from 18 February 2024, with later milestones such as the digital battery passport in 2027.
  • Manufacturers, importers and companies that use batteries should review their supply chain and information duties.

On 17 August 2023 Regulation (EU) 2023/1542 on batteries and waste batteries entered into force; it was published in the Official Journal of the European Union on 28 July. The Council had given its final approval on 10 July. The text replaces the previous directive on the subject and, being a regulation, applies directly in all member states without the need for a transposition law. In general, its rules will be enforceable from 18 February 2024.

Batteries are at the heart of the energy transition: electric cars, bicycles and scooters, energy storage in businesses and homes, tools and electronic devices. The regulation tries to make that expansion sustainable, with rules on the materials used, carbon footprint, durability, collection and recycling, and with information requirements for those who make them or place them on the market.

What it regulates

It is a text that follows the battery through its whole life cycle, from design to the end of its useful life. It sets requirements for sustainability and safety, labelling and information, supply-chain due diligence and waste management. It distinguishes several categories —portable, starter, industrial, electric-vehicle and light-means-of-transport batteries— with different demands for each.

Among the most discussed novelties are the carbon-footprint declaration for certain batteries, collection and recycled-content targets, and the obligation that batteries in portable devices can be removed and replaced by the user. These measures are meant to extend the life of products and reduce dependence on imported raw materials.

Timetable and digital passport

Entry into force on 17 August does not mean everything is enforceable today. General application comes on 18 February 2024 and other obligations are phased in over the following years. The digital battery passport, accessible through a QR code, will be mandatory from 18 February 2027 for electric-vehicle batteries, light-means-of-transport batteries and industrial batteries above 2 kWh, and will record data on composition, origin and traceability.

Supply-chain due diligence, which concerns raw materials such as cobalt, natural graphite, lithium and nickel, will be required from 18 August 2027. That is a long lead time, but preparation —identifying suppliers, documenting where materials come from, auditing— takes time, and those who start early will arrive ahead. For small businesses that make or distribute products with batteries, the practical advice is to start by knowing which items contain a battery, who supplies them and what documentation currently exists on their composition and origin.

What to review

Manufacturers, importers and distributors of batteries, electric vehicles or devices with built-in batteries should draw up an inventory of products and suppliers and check which battery category applies to them and which obligations apply from 2024. Supplier contracts should also be reviewed to ensure that suppliers provide the composition, carbon-footprint and traceability data that will be required.

Companies that simply use batteries —electric fleets, energy backup systems, storage— may be affected indirectly, through changes in price, availability or responsibility for managing the waste. Before deciding on investments in this equipment, it is reasonable to ask the supplier for information on compliance with the regulation. For specific cases, consult your adviser.

The battery stops being just another part of the product and gets its own file.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.

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