What is the European Batteries Regulation about?
The EU Batteries Regulation (Regulation (EU) 2023/1542, ”EUBR“), which came into force on 17 August 2023, is a game changer. It is directly applicable in all EU member states since 18 February 2024 (with the exception of a few regulations, see Art. 96 Batteries Regulation). It replaces the old Battery Directive 2006/66/EC and provides a standardized legal framework for the entire life cycle of batteries. For the first time in product-related environmental law, the EU has adopted a life-cycle-based approach (with safety requirements, conformity assessment and environmental aspects), which places uniform obligations on economic actors throughout Europe. The EUBR aims to minimize the negative environmental and social impacts of the battery industry, optimize the efficient use of resources, promote a circular and climate neutral economy and safeguard safe battery products. The aim is to create a toxic-free environment and strengthen the EU's long-term competitiveness and strategic independence.
How does it affect the automotive industry?
The EUBR applies to all categories of batteries, especially such batteries used in the automotive industry: The EUBR addresses portable batteries, starting, lighting and ignition batteries (SLI batteries), light means of transport batteries (LMT batteries), electric vehicle batteries (EV batteries) and industrial batteries. The EUBR thus adds two new categories to the already covered battery types:
- traction batteries specifically designed to provide electrical energy for the propulsion of hybrid or class L electric vehicles (EV batteries); and
- light transport batteries specifically designed for the traction of wheeled vehicles that can be propelled solely by an electric motor or by a combination of motor and human power, including type approved class L vehicles (LMT batteries).
What are the obligations of the players in the automotive industry?
The EUBR imposes obligations on all kinds of companies active in the automotive industry. Especially addresses are the so-called economic operators: manufacturers, importers distributors, authorised representatives, suppliers and fulfilment service providers. Beyond that, and according to the EUBR’s life cycle approach, also other „players“ in the (automotive) battery industry such as producers, recyclers and waste management operators are affected.
Overall, if you have not done so far, we highly recommend carrying out a GAP analysis in which role your company is according to the EUBR.
Scope of obligations
The EUBR comes with comprehensive obligations in the area of product conformity. According to their role in the supply and distribution chain, companies have to fulfil especially (some of) the following obligations or review whether other companies have fulfilled these obligations:
- sustainability and safety requirements, such as
- restrictions for the presence of mercury, cadmium and lead in certain categories of batteries;
- operating instructions and safety information included with the batteries;
- product labelling requirements and information obligations (including battery category, date of manufacture, capacity (see Annex VI for more), symbol for separate collection of batteries, QR-code that provides access to further information about the battery, such as the battery passport, declaration of conformity, CE-marking, model identification and batch or serial number, name and postal address of the manufacturer);
- CO2-footprint;
- digital battery passport;
- minimum recycling percentages.
- Waste and recycling related extended producer responsibility obligations such as
- registration obligations for producers;
- participating in a producer responsibility organisation or fulfilling their obligations on their own.
- comprehensive due diligence obligations, including
- establishment of a management system;
- implementation of risk management related to due diligence;
- disclosure of due diligence-related information.
What are the risks of non-compliance and what happens next?
Compliance with the EUBR is a prerequisite for being allowed to market batteries as well as products (such as vehicles, car keys etc.) on the Union market. Non-compliance bears the risk of recalls and official warning. Apart from this, all member states of the Union will implement fines for companies violating the requirements arising from the EUBR. Beyond this, non-compliance can lead to actions of competitors based on competition law, e.g. in form of cease-and-desist letters.
National implementations and requirements are becoming stricter
The development of the EUBR is still under way.
Although the EUBR is directly applicable to all actors in the (automotive) battery industry most Union member states are working towards sophisticated national implementations on a national level detailing the obligations foreseen in the EUBR and also defining specific sanctions (such as fees of several hundred thousand EUR) in cases of non-compliance.
Furthermore, further and stricter requirements will gradually come into effect until 2028, including requirements on the durability of batteries, minimum recycled content requirements as well as due diligence obligations.
The EUBR poses considerable legal and factual challenges for the automotive industry. We therefore recommend taking a look at our guide to the EUBR and our presentation on the new EUBR.
