Published on 6 September 2023
Batteries are an important source of energy and a key factor in the sustainable development of green mobility, clean energy and climate neutrality. The EU’s recently published Batteries Regulation replaces the previous Batteries Directive 2006/66/EC.
The aim of the new Batteries Regulation is to create a circular economy for the batteries sector. In the process, all stages of a battery’s life cycle, from production to re-use and recovery, are to be taken into account.
In addition to previous categories of batteries (portable batteries, automotive batteries used for automotive starter, lighting or ignition power, and industrial batteries), the Batteries Regulation introduces two new categories, namely batteries for light means of transport (e.g. electric bikes) and electric vehicle batteries to provide electric power for traction in hybrid or electric vehicles. Apart from general duties, the obligations of producers, importers, exporters and distributors depend on the type of battery. For instance, distributors are required to take back waste batteries free of charge, regardless of their chemical composition, brand or origin. There is no obligation on the end users to have bought the battery from them, nor can they be required to buy a new battery.
Stricter circular economy requirements
The new Batteries Regulation is intended to support the development of a circular economy by regulating the entire life cycle of a battery. Therefore, it includes provisions on battery lifetime, as well as collection targets and recovery obligations.
Producer responsibility has also been extended. Accordingly, producers in every Member State must designate an authorised representative, and must bear the costs of collecting, treating and recycling all batteries collected, of providing information about batteries to end users, and of appropriate re-use and discarding of waste batteries, among others. Producers may also exercise these obligations collectively by appointing producer responsibility organisations to assume this responsibility on their behalf.
To a certain extent, extended producer responsibility also applies to economic operators who place batteries on the market that result from preparation for re-use, preparation for repurposing, repurposing or remanufacturing operations.
The Batteries Regulation also includes rules that are important for end users. By 2027, batteries incorporated into appliances must be made replaceable by end users. The companies in question will therefore have to adapt the construction of their appliances. Furthermore, batteries in light means of transport must be replaceable by independent professionals.
New labelling, sustainability and safety requirements for all types of batteries
The aim of the Regulation is to create a functioning internal market for batteries by laying down labelling, sustainability and safety requirements intended to ensure conditions of fair competition. This is to be achieved by means of safety and performance criteria, as well as restrictions on hazardous substances such as lead, among other things.
A battery passport will be introduced in order to enhance transparency along supply and value chains. Producers must provide extensive data about their batteries in this digital passport. This includes, for instance, information about the materials used, the condition of the battery, and also its carbon footprint. Such information must in future be accessible online via QR codes. The rules on battery passports will be applicable as from 18 February 2027.
Reducing environmental and social impact
A further aim of the Batteries Regulation is to reduce the social and environmental impact of batteries by imposing strict due diligence obligations on economic operators. The latter must verify the origin of the materials they use in manufacturing batteries. Exemptions are provided only for small and medium-sized enterprises.
Economic operators will have to adopt a company policy to comply with their due diligence obligations with respect to raw materials such as lithium or cobalt, and the related social and environmental risks. Furthermore, they must structure their internal management system so as to assign responsibility for overseeing this battery due diligence policy to the top management level. They must also maintain records of that system.
Penalties
By 18 August 2025, Member States must lay down the rules on penalties applicable to infringements of the Regulation in order to ensure its implementation. The penalties must be effective, proportionate and dissuasive.
Next steps
The national legislature will now have to review the Austrian Batteries Ordinance for conformity with the EU’s new Batteries Regulation, amending or repealing it as needed. Moreover, some provisions of the EU Batteries Regulation stipulate that certain implementing acts must be adopted at the EU level (e.g. on the carbon footprint of electric vehicle batteries). CMS will keep you up to date on further developments.
