EU Council Enacts Legislation to Pause Compliance on Battery Responsibility Regulations
The European Union (EU) has taken a significant step towards supporting industrial competitiveness and reducing regulatory complexity with the adoption of the Omnibus IV package. This legislative package, aimed at simplifying and postponing certain regulatory obligations related to sustainability and environmental policies, was recently approved by the EU Council.
One of the key aspects of the Omnibus IV package pertains to batteries. The new law delays the due diligence obligations under the EU Battery Regulation (Regulation 2023/1542) by two years, moving the compliance deadline from August 18, 2025, to August 18, 2027. This due diligence includes requirements for battery manufacturers to establish policies covering environmental, waste management, and responsible sourcing of critical raw materials such as cobalt, natural graphite, lithium, and nickel. Producers must also have these policies verified and undergo regular audits by third-party bodies.
The delay is intended to give battery producers and exporters more time to prepare for these complex obligations and to address issues identified with the authorization process of third-party due diligence verification bodies, which are essential for auditing and verifying compliance. Additionally, the regulation mandates that the European Commission will publish due diligence guidelines one year before the new rules take effect, to assist companies in smoother implementation.
The main contents of the Omnibus IV package related to batteries are:
- Postponement of the due diligence obligations deadline by two years to August 18, 2027.
- Extension of the timeline to publish official due diligence guidelines until July 26, 2026.
- Addressing regulatory and authorization challenges concerning third-party verification bodies.
- A broader aim to simplify sustainability rules and support industrial competitiveness, including some changes to other sustainability regulations like the F-gas Regulation and provisions for small mid-cap companies.
In addition to the battery-related changes, the Omnibus IV package also contains proposals for a directive and a regulation on mid-caps, a simplification of certain data protection obligations for SMEs and small mid-caps (SMCs), and proposals for a directive and a regulation regarding the digitalization and alignment of common specifications amending 20 pieces of EU product legislation under single market rules.
This measured delay aims to balance the urgency of sustainability with practical readiness and competitiveness in the EU battery industry. The new law provides additional time to battery makers and exporters to comply with new environmental due diligence rules, while the Commission will be required to publish due diligence guidelines one year before the obligations take effect. The new law also aims to boost EU competitiveness in the field of batteries.
The postponement will also offer more time for the setting up of third-party verification bodies, ensuring a smoother transition towards more sustainable and responsible battery production in the EU.
The Omnibus IV package, in its extension of the timeline to publish official due diligence guidelines until July 26, 2026, demonstrates a commitment to the science and environmental-science sector, providing clarity and guidance for battery manufacturers in achieving responsible sourcing and environmental policies. Furthermore, the package's focus on technology, particularly in the form of third-party verification bodies, will pave the way for more advanced and sustainable battery production in the EU, ultimately enhancing the region's competitiveness in this field.
