The European Commission is planning mandatory regulation of the battery supply chain
Proposed EU battery regulations aimed at addressing issues related to the European battery supply chain have been welcomed by industry groups, although some say they may be too complex in their current form, foreign media reported.
The European Commission plans to develop a mandatory regulation that includes the use of battery production materials from reliable sources, minimum content, performance, durability, labelling and carbon footprint for recyclable materials, as well as setting and complying with battery collection and recycling targets.
The proposed regulation states that battery products placed on the EU market should be sustainable, high-performance and safe throughout their life cycle, including using production materials obtained without violating human rights and materials with the least impact on the environment.
From July 1, 2024, manufacturers and suppliers of industrial and electric vehicle batteries entering the European market will have to provide carbon footprint statements. Starting in early January 2026, battery manufacturers will have to label their products in the carbon intensity performance category, and the maximum carbon footprint threshold will be available by July 1, 2027.
Different types of lithium-ion batteries
The proposed regulations state that the use of hazardous substances such as mercury and cadmium in battery materials must be limited. Starting in early January 2030, there will be minimum recycling levels for lead, cobalt, lithium and nickel used in batteries. Starting in 2035, battery products will contain 12 percent cobalt, 85 percent lead, 4 percent lithium and 4 percent nickel. In September, the European Commission for the first time added lithium to a list of key raw materials the continent needs to secure supplies, which already includes nickel and cobalt.
Industry calls for due diligence and carbon footprint rules
Patrick de Metz, president of RECHARGE, a European industry group dedicated to building a value chain for rechargeable and lithium batteries, welcomed proposals to introduce carbon footprints and due diligence measures within the EU framework. De Metz, director of government and environmental affairs at Saft, a French battery maker, says his company has been an advocate for this goal.
"Due diligence and carbon intensity have been conspicuously absent from this comprehensive framework so far, to the detriment of the European producers involved," Metz said. Carbon footprint and due diligence measures have the potential not only to prevent underperforming battery products from entering the EU market, but also to help at the product level in achieving the EU's climate neutrality and sustainability goals."
The European Union has funded the construction of several battery manufacturing sites in Europe. The European Battery Alliance is funding planned battery plants by manufacturers such as Sweden's Northvolt and France's Verkor.
In a statement, RECHARGE noted that since the European Battery Alliance was established in 2017, it has announced plans to build 12 gigafactory plants in Europe. Investment in the European battery industry reached €60bn last year. At the current rate of growth, the sector will create about 800,000 jobs by 2023.
The Commission's proposals are not only designed to help the EU achieve its climate goals and promote the European Green New Deal, but are also essential for the establishment of sustainable and economically competitive industries. The legal certainty these directives can provide will help increase investment in the battery value chain and stimulate capacity growth.
Claude Chanson, RECHARGE general Manager, says the proposal represents the next milestone in the EU's strategic battery action plan. "This will put European policymakers in a unique position to now translate the EU's vision for sustainable, innovative and competitive batteries' made in Europe 'into a meaningful legislative framework that will close gaps in existing legislation and level the playing field with international manufacturers," he noted.
RECHARGE welcomes the European Union's battery policy, which has remained largely unchanged since the battery Directive was introduced in 2006, transforming the European regulatory framework. The company claims this is the first step towards greater transparency and predictability in the industry. However, many of the proposed new rules and measures may be difficult for stakeholders to fully grasp because they are indeed highly complex.
RECHARGE warns that the Commission's proposals run the risk of over-regulating the industry and hopes not to over-regulate fast paced innovative industries, such as batteries or electric vehicles.
"Closing the gap with international competition will depend on long-term investment and a consistent regulatory framework," says Patrick de Metz, president of RECHARGE.