EU Battery Law to Take Effect on 18th... Mandatory Recycling of Lithium, Nickel, etc. from 2031

The European Union (EU)'s 'Battery Regulation' will come into full effect starting on the 18th (local time).

According to the 'Key EU Trade Regulations in 2024' report published on the 12th by the Korea International Trade Association's Brussels office, the Battery Regulation aims to improve the sustainability of batteries distributed within the EU and strengthen recycling standards for battery raw materials.

This is intended to proactively address environmental pollution and resource waste that may arise from the rapid increase in waste batteries as electric vehicles become widely adopted worldwide.

Under the regulation, reporting of the carbon footprint, which refers to the total greenhouse gas emissions generated throughout the production and consumption process, will be mandatory, along with obligations for waste battery collection and supply chain due diligence.

Small batteries used in mobile phones and other devices must be designed so that consumers can easily separate and replace them. 'Digital battery passports' will be introduced for electric vehicle and LMT batteries, as well as industrial batteries with a capacity of 2kWh or more, allowing access to individual battery information.

However, there are still procedural steps remaining, such as the adoption of delegated acts equivalent to enforcement decrees after the law takes effect, and the timing of application varies by issue, so the actual increase in corporate burden is expected to begin from next year.

Recycling standards for battery raw materials will also be strengthened. The EU has set minimum recycling rates for battery raw materials to be applied as early as 2031: cobalt 16%, lithium 6%, lead 85%, and nickel 6%. This effectively mandates the recycling ratio of raw materials. By 2036, these rates will be raised to cobalt 26%, lithium 12%, lead 85%, and nickel 15%.

To encourage waste battery recycling, the EU has set targets to extract 50% of lithium and 90% each of cobalt, copper, lead, and nickel from waste batteries by 2027. In Korea's case, since the three battery companies Samsung SDI, LG Energy Solution, and SK On have all entered the EU market, they may be subject to this regulation.