EU to introduce tougher sustainability rules for EV batteries

The EU has reached a provisional political agreement on a proposal to strengthen sustainability rules for batteries and waste batteries.

The legislation will regulate the entire life cycle of a battery – from production to reuse and recycling – and ensure that they are safe, sustainable and competitive. 

Green group Transport & Environment (T&E) said the Batteries Regulation is a “game changer” for the sourcing, production and recycling of batteries for electric cars.

Battery manufacturers will have to report the product’s entire carbon footprint, from mining to production to recycling, as early as July 2024. That data will then be used to set a maximum CO2 limit for batteries to apply as early as July 2027, ensuring that companies make them using clean energy instead of fossil fuels.

Firms selling batteries in the EU will also have to comply with rules designed to prevent environmental, human rights and labour abuses in their supply chains. The law will require battery-makers to identify, prevent and address a range of issues, including water pollution to community rights.

The regulation establishes end-of-life requirements, including collection targets and obligations, targets for the recovery of materials and extended producer responsibility.

It also provides for mandatory minimum levels of recycled content for EV batteries. These are initially set at 16% for cobalt, 85% for lead, 6% for lithium and 6% for nickel. The regulation sets an obligation for batteries to hold a recycled content documentation.

Marian Jurečka, Czech minister of the environment, said: “Batteries are a key element of the EU's shift towards zero-emission modes of transport. As demand for batteries will grow by more than ten-fold by 2030 we need to make sure we have enough batteries and that they are sustainable throughout their supply chains.

“The new rules will promote the competitiveness of European industry and ensure that end-of-life batteries will be properly collected and recycled so that useful materials are recovered and toxic substances are not released into the environment.”

Alex Keynes, clean vehicles manager at T&E, added: “The law helps even the playing field between Europe’s battery industry and imports which are subject to minimal standards. Global producers can invest in cleaner production processes and new recycling capacity in Europe knowing they will have a guaranteed market for green batteries here.”

The provisional agreement reached between the Council presidency and European Parliament negotiators now needs to be endorsed and formally adopted by both institutions.