How proposed EU regulations will affect electric vehicle batteries

The European Parliament is progressing legislation proposed by the European Commission on 10 December 2020 to modernise regulations relating to all types of batteries. The proposed legislation introduces new classification and requirements specific to electric vehicle batteries – any battery designed to provide power to traction systems in hybrid or electric road vehicles.

Whilst most of the proposed regulations apply to electric vehicle batteries with capacities larger than 2 kilowatt hours, this would still impact most hybrid cars as they generally have battery capacities in this region. We might then see automotive manufacturers capping the batteries in their hybrid offerings, although hybrids are likely to be phased out in view of bans on petrol and diesel car sales in some European countries as we head towards 2035.

The new regulations proposed by the European Commission include:

1. Recycled content

To encourage investment and development in recycling technologies that are cost-competitive with producing raw materials, minimum levels of recycled content would be set for 2030, increasing in 2035.

Beginning in 2027, electric vehicle batteries would have to be accompanied by a declaration on the proportion of recycled cobalt, lead, lithium and nickel in each battery model and batch per manufacturing plant.

The initial minimum levels of recycled content from 2030 for each of these elements would be 12% for cobalt, 85% for lead, 4% for lithium and 4% for nickel. These levels are proposed to increase in 2035 to 20% for cobalt, 10% for lithium and 12% for nickel, with the proportion of recycled lead remaining the same.

2. Carbon footprint

With a view to progressively minimising the carbon footprint of electric vehicle batteries, from 2024, electric vehicle batteries would need to be accompanied by a carbon footprint declaration which includes, among other things, where the battery was manufactured, total carbon footprint of the battery, and the carbon footprint of the battery differentiated per life cycle stage.

Carbon footprint performance classes, which are yet to be defined but with category A being the best class with the lowest carbon footprint life cycle impact, will be identified by the European Commission. From 2026, each electric vehicle battery would have to be labelled conspicuously and indelibly with its specific carbon footprint performance class.

Additionally, from 2027, electric vehicle batteries will need to comply with not-yet-determined maximum life cycle carbon footprint thresholds.

3. Management system

Electric vehicle batteries would have to contain a battery management system that stores the information and data needed to determine the state of health and expected lifetime of the battery. Whilst many electric vehicle batteries already include such systems, the proposals would require that data in this system must be accessible to the owner of the battery, as well as third parties acting on their behalf.

4. Second life

This right to repair style provision for electric vehicle batteries proposes requirements on batteries which help third parties to repurpose them. For example, enabling access to battery management systems to assess and determine the battery’s health and remaining life. Third parties would also have to be given access to information relevant for the handling and testing of electric vehicle batteries, or of vehicles in which such batteries are incorporated as well as of components of such batteries or vehicles.

Repurposed batteries would not be subject to the recycled content or carbon footprint conditions of their new counterparts.

5. Battery passport

From 2026, all electric vehicle batteries would require an electronic record that is accessible online and linked to a unique number printed or engraved on the battery, similar to a vehicle identification number.

This battery passport would enable access to performance and durability values such as rated capacity, power, and an indication of expected life.

Driving sustainable innovation

Overall, the proposed legislation seeks to encourage more sustainable developments for electric vehicle batteries. These will undoubtedly spur innovation in manufacturing carbon footprint conscious batteries that contain increased recycled elements, as well as through removing barriers for ventures which aim to repurpose these high capacity batteries after the end of their useful life for vehicles.