Regulation (EU) 2023/1542 on batteries and waste batteries

I. Introduction: From Directive to Regulation

So far, the European Battery Directive¹ has mainly focussed on the recovery phase of batteries. However, the European Green Deal puts batteries at the centre of efforts to achieve climate neutrality and the sustainable use of resources. In view of the growing importance and demand for batteries as an energy source for various sectors, a standardised legal framework is required along their entire life cycle. However, with the limited scope of regulation and differing implementation by the Member States, the Battery Regulation is reaching its limits in creating a sustainable battery value chain. Standardised requirements are needed - from procurement to production and recycling - that cover ethical raw material sourcing, security of supply, sustainable battery production, reducing negative environmental impacts and improving resource efficiency. The new Regulation (EU) 2023/1542² sets out harmonised requirements to improve the resource use, circular economy, sustainability and safety of batteries.

In order to ensure that batteries meet the specified standards and guarantee a high level of environmental protection, mandatory conformity assessment procedures are now prescribed. This obligation lies with the battery producer, who has the best insight into the product design and manufacturing process. However, other economic operators along the supply chain must also ensure that only compliant batteries are placed on the market. The key obligations and innovations are presented in the following and the associated challenges for economic operators are highlighted.
 

II. Obligations and innovations of the Regulation

The Battery Regulation introduces significant innovations compared to the Battery Directive, which cover all phases of the life cycle. Some of the regulations have already been in force since 18 February 2024, while the innovations in particular will be implemented gradually until 2027 and beyond. The following new or significantly extended requirements must be met when placing batteries on the market in future, although the structure and deadlines may differ depending on the type of battery:

• Extension of the substance restrictions for batteries in accordance with Appendix I places stricter requirements on material compliance, with potentially further substances being evaluated by the end of 2027 (Art. 6)
  Mandatory indication of the carbon footprint, minimum recycled content for active materials and requirements for performance, durability and safety in the context of sustainability and safety standards (Art. 6-10, 12)
• Significantly expanded labelling requirements, information on the ageing status and service life in the battery management system and additional information (Art. 13, 14), which will be provided in future via a QR code and digital battery passport (Art. 77, 78)
• Introduction of conformity assessment, CE marking and issuance of the EU declaration of conformity for batteries (Art. 17-20)
• Determination of due diligence obligations for economic operators with an annual net turnover of at least EUR 40 million (Art. 47-53)
• Determination of due diligence obligations for economic operators with an annual net turnover of at least EUR 40 million (Art. 47-53). EUR (Art. 47-53)
• Extending the requirements for end-of-life management, in particular with regard to collection, treatment and arrangements for reuse, repurposing and remanufacturing (Art. 54-76)

Determining the scope of obligations for companies depends largely on their own role in the value chain. A significant innovation is the introduction of the producer according to Art. 3 No. 33, who is responsible for compliance and fulfilment of sustainability and safety standards as well as labelling and information requirements. ‘Manufacturer’ means any natural or legal person who manufactures a battery or has a battery designed or manufactured, and markets that battery under its own name or trademark or puts it into service for its own purposes.’

Producers, importers or distributors can also be producers in accordance with Art. 3 No. 47, who are primarily responsible for the management of waste batteries. ‘Producer’ means any manufacturer, importer or distributor or other natural or legal person that, irrespective of the selling technique used, markets batteries in the Member State concerned.

It is important to note that the concept of producer does not exist in other legislation that may also be relevant for companies. The different terminology can lead to confusion and, under certain circumstances, to companies not fulfilling all their obligations. Under Directive 2011/65/EU³ (RoHS), for example, there is only the term manufacturer, which includes the producer according to the Battery Regulation. Companies must therefore familiarise themselves in detail with the definitions of economic operators and clearly differentiate their role in the value chain in order to record all their obligations and comply with them in full.
 

III. CE conformity challenges

A staggered approach to implementation deadlines is intended to make the implementation process easier for economic operators and authorities, but also contributes to greater complexity and a lack of transparency. Many deadlines are dependent on delegated acts to be adopted, the implementation of which is already experiencing delays and in some cases extended deadlines already apply.

One of the central obligations of the Battery Regulation is the implementation of conformity assessment procedures for batteries, which are carried out or initiated by producers and which in turn must be checked by other economic operators along the supply chain. This requires not only precise knowledge of the legal requirements, but also considerable resources and investment in the corresponding process and infrastructure for implementation. All economic operators face the challenge of ensuring that all batteries that they place on the market or put into operation - including those that are installed in devices - comply with the specified requirements.

Conformity assessment procedures, the affixing of CE markings and the issuing of the EU Declaration of Conformity must be implemented or at least commissioned by the producers. Small and medium-sized companies in particular will face major challenges in providing resources for the design and implementation of these processes. Importers and distributors of batteries must ensure that the batteries meet the conformity requirements and that the producers have fulfilled their obligations before placing them on the market or making them available on the market. To this end, it will be necessary to take measures such as a thorough review of the documentation and verification of the correct labelling of the batteries and to incorporate these into the existing procurement processes. Particularly in the case of producers based outside the EU, importers in the Union should have detailed knowledge of the requirements for conformity assessment procedures and other regulations in order to ensure that all requirements are actually addressed. All requirements must also be met for batteries installed in devices/components that may even originate from other producers and suppliers. This requires increased coordination, the revision of supply contracts and the development of knowledge, which in turn means additional costs for the companies involved.

With the implementation deadline for the conformity of batteries approaching on 18 August 2024, there is an urgent need for action to reach appropriate agreements on the requirements with the producers and suppliers of the batteries and to set up and implement the corresponding processes. Depending on the size of the company, its geographical focus and product portfolio, this will require considerable resources to understand and check the requirements and integrate them into existing processes. It should also be noted that the CE marking of the batteries may not be carried out until the implementation deadline, which makes early implementation of the labelling difficult and requires close coordination with the producers.

All relevant documents, including EU declarations of conformity and technical files, must be kept for a period of ten years and made available upon request by the authorities. This requires effective document management and storage as well as extended contractual agreements in case required documents such as the EU Declaration of Conformity are not handed over by the producer or supplier.

The implementation of conformity assessment procedures for batteries thus represents a key challenge not only for the producer, but also for importers and distributors, both in terms of resources associated with procedural implementation and precise compliance with the legal requirements that must be coordinated and checked.
 

IV. Conclusion & Outlook

The Battery Regulation represents a significant step towards regulating the battery market that should not be underestimated. While some areas are harmonised, others, such as end-of-life management, are still left quite ‘open’ to the member states. The large number of innovations and obligations, both for established and new players, makes it clear that their implementation can by no means be achieved in passing. Numerous questions regarding practical implementation and feasibility are still open and may require readjustments. The linking of specifications with other product-specific regulations, such as the requirements for batteries installed in appliances, is particularly challenging.

Successful implementation of the new battery regulations will be crucial to achieving the goals of the European Green Deal and ensuring the sustainable use of batteries along the entire value chain. The comprehensive compliance regulations should lead to increased control and potentially greater safety of batteries, which seems appropriate given the growing importance and demand for batteries.