European Parliament overwhelmingly approves new battery law

        As the world seeks a clean energy transition, especially after the EU's unilateral sanctions on Russia, the EU points to a surge in the use of lithium batteries. Successful battery regulation is closely related to the realization of the EU Green New Deal, the Circular Economy Action Plan and the new industrial strategy. The new EU Battery Law highlights the key role of batteries in the transition to a circular and climate-neutral economy and in the EU's competitiveness and strategic autonomy. The bill was passed last Thursday (March 10) with 584 votes in favor, 67 votes against and 40 abstentions.

        The draft proposal was first passed in the Environment, Public Health and Food Safety Committee (ENVI) on February 10, 2022. The core idea of this new initiative is that rules will govern the entire battery product life cycle, achieving a more climate-friendly waste management process. Now, the European Parliament agrees that full life cycle management will enable the realization of the EU Green Deal.

        The proposals supported by MEPs include:

        1. Rules on carbon footprint declaration and labeling, maximum values for life cycle carbon footprint, and minimum levels for recycling cobalt, lead, lithium and nickel for reuse in new batteries.

        2. By 2024, portable batteries and LMT batteries in appliances such as smartphones must be designed to be easily and safely removed and replaced by consumers or independent operators.

        3. Any economic operator placing any battery on the EU market must comply with requirements regarding the sourcing, processing and trade risks of raw materials, chemicals and secondary raw materials. MEPs want the battery industry to follow internationally recognized due diligence standards throughout its value chain.

        4. Tougher collection targets for portable batteries (70% by 2025, compared to 65% in the Commission's initial proposal; 80% by 2030, instead of 70%). They also introduced minimum collection rates for LMT batteries (75% by 2025 and 85% by 2030). All scrapped automotive, industrial and electric vehicle batteries must be collected.

        Global lithium batteries to increase 700-fold between 2020 and 2040

        Simona Bonafè, rapporteur of the EU circular economy package, stressed during the debate that the number of lithium batteries waiting to be recycled will increase 700-fold between 2020 and 2040. She further drew attention to the creation of an effective market for raw and secondary materials, which could enable more sustainable lithium battery production procedures across the bloc.

        The battery regulatory legislation also said that stricter requirements should be imposed on sustainability, performance and labelling. This will include the introduction of a new category of "batteries for 'light transport' (LMT)" - such as electric scooters and bicycles, and rules on carbon footprint declarations and labelling. By 2024, portable batteries in smartphones are expected to be designed to be easily disassembled. MEPS said this would allow consumers and supply chains to dispose of them in a more climate-friendly way, rather than sending an entire iPhone to landfill.

        Due diligence should be done behind lithium extraction supply chains

        The industry behind the batteries should also fully comply with human rights obligations, especially when it comes to the sourcing, processing and trade of raw materials - concentrated in a few countries. MEPS said battery regulation legislation would force supply chains and governments to conduct due diligence before engaging. For example, Chile, Argentina and Bolivia – the three South American countries known as the “Lithium Triangle” – hold 75% of the world’s lithium supply on their soil. The extraction process takes 12 to 18 months but results in a large and extensive mining effort. In regions with such high-value exports, there is always a risk of labour exploitation, especially when the same exports are used in all electronic devices around the world.

        Rapporteur Simona Bonafè further stated: “The maximum carbon footprint, minimum recycled material content, performance standards, durability and removability are the main sustainability requirements, introduced for the first time for batteries, which must aim to become a benchmark for the entire global market and must apply to any type of battery sold on the European market, including those imported from non-EU countries.”