Batteries in the EU as a part of a greener economy

Batteries and their components are in significant demand. That demand is to be viewed and managed in the context of a drive for a greener economy and the impact of batteries on the environment. As part of this, the EU replaced the outdated Directive 2006/66/EC with a new Battery Regulation. A key purpose and aim of the new Regulations is to seek to minimise the impact of battery production on the environment and providing regulation for the recovery and disposal of modern accumulators.

As a component part of the broader European Green Deal, the requirements from the Battery Regulations cover the entire lithium battery life cycle. This begins with raw material extraction. It then goes through production, design, labelling, traceability, collection and ends with recycling and reuse. The cycle then begins again with the recycled material featuring in a new life battery. Under the Battery Regulations, batteries are to be categorised by group depending on use.

A big feature of the new Battery Regulations is the so-called Battery Passport that comes into effect by 2027. This requires a QR code identification alongside a CE marking to ensure compliance with both safety and traceability requirements for the lifecycle of the battery. This requirement for traceability forms part of a range of provisions and requirements that will be introduced over the course of nearly a decade and are intended to provide for sustainability in batteries. The requirements under the Battery Regulations culminate in 2031 with a provision that mandates a minimum level of recycled content in batteries. 

The Battery Passport look at health and life expectancy of the battery. From 2024, batteries were required to be fitted with a BMS (Battery Management System). The BMS is to perform both cell balancing (with the intent of increasing life span) and the ability to assess both the health of the battery and its charge.

In addition, the Battery Regulation provides for a compulsory carbon footprint declaration and label for electric vehicles. This is alongside stricter waste collection targets (including those derived from WEEE obligations) and requirements in respect of minimum levels of materials to be recovered from waste batteries. This recovery and recycling requirement increases will increase percentage terms from initial levels in 2027 to higher percentage figures in 2031, with a focus on the critical materials in batteries, such as cobalt, lithium and nickel. The obligations regarding battery lifecycle will increase incrementally for over the next decade. There is an inherent recognition that the methodology and processes for effective recycling require significant improvement and work is to be done in that respect.

Regulatory requirements from the new Battery Regulations around the Battery Management System and the visibility around performance, health and charge will serve to bring into focus and hold to account performance expectations of products and of those that provide the longevity and efficiency to be expected and those that do not. Traditional recall and recall management will form a part of that. The ability to address updates and corrections remotely that would otherwise have necessitated a more traditional recall process to be undertaken is something that has been seen developing and will continue to grow.

The Battery Regulations, their evolution and development over several years reflects the scale of the challenge and the need for an element of realism in how to effect sustainable change and batteries having a role in a circular economy. They are an important step forward and stress the importance of attaining longevity and securing effective recycling to provide a workable long-term solution.