EU regulation aims to make car batteries greener: Praise from T&E and BEM

The environmental and community impacts of electric car batteries are expected to significantly improve due to a new law agreed upon by EU legislators on Friday. This is the assessment of the environmental organization Transport & Environment (T&E), which sees the EU Battery Regulation as a turning point for the sourcing, production, and recycling of batteries for electric cars. These are already far more environmentally friendly than the combustion of oil. Battery manufacturers selling in Europe will be required, starting in July 2024, to disclose the entire carbon footprint of their product—from mining through production to recycling. Based on this data, a CO2 limit for batteries will be set, effective as of July 2027, to ensure companies manufacture batteries using clean energy rather than fossil fuels.

"Batteries are already far more sustainable than burning oil in our cars, but they can be much better. The new carbon footprint, recycling, and due diligence regulations will ensure that the batteries sold in Europe are the most sustainable in the world and set the standard for the rest of the world," stated Alex Keynes, Clean Vehicles Manager at T&E.

Companies selling batteries in the EU will also have to comply with regulations preventing environmental, human rights, and labor rights violations in their supply chains. The law requires battery manufacturers to identify, prevent, and address a broad spectrum of issues ranging from water pollution to community rights. While the regulation applies to key minerals like lithium, nickel, cobalt, and graphite, T&E argues that all raw materials, including fossil fuels, should be subject to the same standards under a new due diligence regulation the EU is expected to finalize in the coming months.

Electric vehicles are already cleaner than internal combustion engines

Batteries are already more resource-efficient than gasoline and diesel, which cannot be reused or recycled after combustion. New EU recycling targets will further enhance this advantage, according to the NGO: by 2027, battery manufacturers must recover 90 percent of the nickel and cobalt used, increasing to 95 percent by 2031. Additionally, they must recover 50 percent of the lithium used by 2027, rising to 80 percent by 2031. According to T&E, the new regulations are also good news for the growing battery industry in Europe. The law will ensure that the products of new European market participants cannot be undercut by imported batteries produced with coal-intensive energy and without regard for human and labor rights. It will also spur the necessary investments to build more recycling capacity and create local jobs in Europe.

"The law helps to level the playing field between the European battery industry and imports that only meet minimal standards. Global manufacturers can invest in cleaner production processes and new recycling capacities in Europe, knowing they have a guaranteed market here for environmentally friendly batteries," added Alex Keynes.

Key details must still be clarified by the legislature in a series of implementing regulations. According to T&E, the new carbon footprint rules, set to take effect next summer, must not allow greenwashing, where battery manufacturers only need to disclose proof of origin to claim their energy is renewable.

BEM praises regulation and sees important milestone

The German Association for eMobility (BEM) has also praised the agreement between the EU Parliament and Council on new rules for the entire battery lifecycle. From creation to replacement to recycling, batteries should in the future be subject to uniform requirements for industry and consumers to be more sustainable, efficient, and durable in use. The planned regulation will apply to all batteries placed on the EU market.

“While compliance with environmental regulations and circular economy criteria has so far been voluntary, the EU’s new proposal now establishes a baseline for all market participants. The batteries of electromobility, from eBikes to eAviation, can thus be considered the EU’s first green product, creating transparency and competitive equity in the name of environmental and climate protection,” BEM Board Member Markus Emmert assesses the agreement.

Regulations include labeling the carbon footprint of traction batteries for electric vehicles (EV), including micro and light vehicles (LMT) and rechargeable industrial batteries with a capacity of over 2kWh. These batteries must also have a digital passport containing information about the model and usage. This will enable tracking of collection targets for the reuse of cobalt, lead, or lithium. All used LMT, EV, SLI, and industrial batteries must be taken back free of charge for end consumers, regardless of type, chemical composition, condition, brand, or origin. By the end of 2030, it will also be reviewed whether the use of non-rechargeable portable batteries for general use should be gradually phased out. The agreement must still be formally approved by the EU Parliament and Council before it can take effect. The initiative is closely linked to the European Green Deal, the Circular Economy Action Plan, and the New Industrial Strategy.