ENHANCING THE SUSTAINABILITY

OF BATTERIES: A JOINT NGOS’

POSITION PAPER ON THE

EU BATTERY REGULATION

PROPOSAL

(17.03.2021 – first round position paper)

2

Introduction 3

1. ClassificationandDefinition(Art.2) 5

2. CarbonFootprint(Art.7&AnnexII) 6

3. RecycledContent(Art.8) 8

4. PerformanceandDurabilityRequirements (Arts.9-10) 10

5. Replaceability,RepairabilityandReusabilityrequirements(i.a.Art.11) 12

6. InformationRequirements (Arts.13,14and65) 15

7. CollectionRates(Arts.48,49and55) 16

8. Second-lifebatteries(Art.59) 18

9. RecyclingTargets(Art.57) 20

10.IncentivesforSustainableBatteries (Arts.13and70) 22

11.StopIllegalImportsofBatteries 23

12.DueDiligence(Arts.39and72) 24

Contents

Despitetheircrucialroleinincreasingtheintegrationofrenewableenergysourcesinoureconomyandindecarbonisingthetransportsector,batteriesdonotcomeatnocosttotheenvironment.Theseproductsimpacton,inparticular,biodiversity,waterandairqualityfromminingandextractionofanumberofcriticalrawmaterials,aswellasfromtheirdisposalandrecycling,nottomentionapotentiallysignificantcarbonfootprintifinefficientmanufacturingprocessesandcarbon-intensiveenergysourcesareused.

Currently,themainlegalframeworkonbatteriesintheEuropeanUnion(EU)istheBatteryDirective(Directive2006/66/EConbatteriesandaccumulators).Thispieceoflegislationismorethanadecadeold(itdatesbackto2006)andassuchitfailstoaddressnewtechnologiesandtheenvironmentalchallengesassociatedwiththese.Sinceitmostlycoverswastebatteries,italsolacksprovisionsonmanyotheraspectsofthevaluechain.Itintroducedrequirementsforplacingbatteriesonthemarket,aswellastheircollection,treatmentandrecycling.However,sincethedefinitionsandcategorisationofbatteriesappliedintheDirectiveareoutdated,thereiscurrentlynocollectionschemeforelectricvehicle(EV)batteries.Moreover,therecyclingtargetsareweight-basedandthereforethereislittleincentivetoimprovethequalityofrecyclingprocessestorecovercriticalrawmaterialssuchaslithium.Finally,theseconduseofbatteriesisnotfullyaddressed,andtheresponsibilitiesinthesupplychainareunclear.

Aimingtoaddressalltheseshortcomings,inDecember2020,theEuropeanCommissionadoptedaproposalforaRegulationonbatteriesandwastebatteries(referredfromhereonas‘BatteryRegulation’).Thiswasthefirstpolicyworldwidetocoverthewholebatteryvaluechain.WithitsStrategicActionPlanforBatteries,theEUmadeclearin2018itsambitiontobeagloballeaderinsustainablebatteryproduction.TheintentiontoapplynewrulestothebatterysectorwaslistedasoneofthemainactivitiesoftheEUCircularEconomyActionPlan,withtheobjectivetosolvemostoftheregulatoryandstandardisationobstaclesforatrulysustainableEuropeanbatteryvaluechain.

Overall,theproposedregulationaddressesseveralcrucialelementswhichsettherightwayforwardtowardsthesustainabilityofbatteries.Forinstance,theproposalsonthetablesetincreasedtargetsforthecollectionandrecyclingofbatteries,alignedwiththeEUcirculareconomyambition.Theproposedrulesalsoincludeperformanceanddurabilityrequirementsforindustrialandportablebatteries,andprovisionsfacilitatingrepair,repurposingforsecond-lifeapplicationsandrecycling.Tomakebatteriesmoresustainable,theEUproposestointroduceabatterypassport,bothforelectricvehiclesandindustrialenergystoragebatteries,toclarifytheresponsibilitiesofproducersacrossthevaluechain,andsetinformationandmaximumemissionrequirementsforthecarbonfootprintofbatteries.

Althoughtheproposedmeasureswillbringasignificantimprovementtothecurrentsituation,severalaspectsremainamatterofconcern.Forexample,proposalsforeseerecoverytargetsof70%forlithiumby2030,butthisthresholdisfartoolowtoenableacompetitiveandcircularEVvaluechain.ItisnowuptotheEuropeanParliamentandCouncil’snationalgovernmentstoimprovetheproposalsandmaketheEUsustainablebatterypolicyarealsuccessstory.

Introduction

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Furthermore,theproposedswitchfroma‘Directive’toa‘Regulation’isnecessaryforconsistentimplementationacrossallMemberStates,improvingharmonisationandlegalcertainty.Havinginmindthesinglemarketrules,itisobviousthatthedesignrequirementsaimedatimprovingcircularityanddetoxificationmustbesetatahighlevelacrossallMemberStates.However,itshouldbepossibleformoreprogressiveMemberStatestointroducemoredemandingnationallawsforcollectionandrecyclingrates,andthereforetoexceedtargetsthataresetintheregulationiftheyareableto.

InordertoachieveanenvironmentallysustainablebatteryvaluechainthroughtheEUBatteryRegulation,thefollowingmeasuresneedtobeimproved:

Inthispositionpaper,environmentalcivilsocietyorganisations(Environmental Coalition on Standards, Transport & Environment, Deutsche Umwelthilfe and the European Environmental Bureau) gothroughthemeasuresproposedbytheEuropeanCommissionandpointoutaspectsthatareeithermissingorshouldbeimproved.

Arevisionofthedefinition‘lightmeansoftransport’toensurethatallbatteriesfromlightmeansoftransportaredefinedasportablebatteries.

Calculationandreportingrequirementsforabattery’scarbonfootprintthatensureuseofrenewableenergyinproduction,aswellasdatathatisverifiedbyindependentthirdpartyauditorsthatareaccreditedbyagovernment.

Aswiftdevelopmentofthemethodologyforthecalculationofrecycledcontentintheproductionofbatteries,tobeextendedalsotoportableandprimarybatteries.

Leviesontheuseofdisposablebatteriesandinpreparationoftheirphase-out,withaviewtopromotethosedevicesthatcanuseapowercableorarechargeablebattery.

Strongecodesignrequirementsforportablebatteriestoensuregoodperformanceanddurability.Theseshouldbeunderpinnedbyappropriatetechnicalstandards.

Strongecodesignrequirementsthatfocusonreplaceability,reparabilityandreusability,andthataresupportedbytheappropriatetechnicalstandards.

Obligationsregardingtheprovisionofinformationtargetingthesupplier/producerandconsumers.

Highercollectiontargets,inparticular85%forportablebatteriesfrom2030and90%forlightmeansoftransportfrom2025,andincentivesforthecollectionofindustrial,automotiveandEVbatteries.

Mandatoryteststodeterminewhetheritistechnicallypossibleandeconomicallyreasonable(includingifthereisamarket)forthebatterytoberepurposedforsecondlife.

Moreambitiousrecyclingtargetsforbatterymaterialrecovery(95%forcobalt,nickelandcopperin2025and98%in2030),inparticularforlithium(70%in2025and90%in2030),andintroductionofareviewclausetomaintainthehighestpossiblelevelofrecycling,takingintoaccountanynewbatterychemistriesthatmaydevelopinthefuture.

AdditionalrequirementsontopoftheOrganisationforEconomicCo-operationandDevelopment(OECD)’sduediligenceprovisionstoensureenvironmentalprotectionandbetterprotectionofvulnerablecommunities,andaccountabilityforfulfillingsuchobligations,remainswiththeeconomicoperatorandnotwithanindustryscheme.

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Themainlimitationsofthecurrentlegislationonbatteriescomefromthefactthatitisoutdated.Itdoesnottakeintoaccountnewbatterytechnologiesandapplications,anditlacksdefinitionsonelectricvehiclesandlightmeansoftransport.TheECproposalsetsnewdefinitionsandcategories(Art.2).Togetherwithportable,automotiveandindustrial,theECestablishesafourthcategoryforelectricvehiclebatteries(Art.2(12)).Theproposalalsorevisesthedefinitionofportablebatteries(Art.1(7))byintroducingaweightthreshold(below5kg)andestablishesasubgroupofportablebatteries:thebatteriesfor‘lightmeansoftransport’inArt.2(9)incombinationwithArt.48(4)andArt.55.

Supporting technical assessment:Theterm‘notdesignedforindustrialpurposes’inArt.1(7)isnotwelldefinedandallowsfordifferentinterpretations.

Theremightbealimitednumberofbatteriesthatendupinhouseholdsthatweighmorethan5kgandthatfallundertheindustrialbatteriesdefinition.This,forexample,wouldbethecasewitha‘stationarybatteryenergystoragesystem’forasolarpowerinstallationataprivatehousehold.Art.49(1)considersthisspecialcaseaccordingly:‘...Wherewasteindustrialbatteriesrequirepriordismantlingatthepremisesofprivate,non-commercialusers,theobligationoftheproducertotakebackthosebatteriesshallincludecoveringthecostsofdismantlingandcollectingwastebatteriesatthepremisesofthoseusers’.TheEC’sproposaldoesnotspecifytheprocedurewhenaproducergoesoutofbusinessandifaproducerresponsibilityorganisation(PRO)isobligedtotakeontheresponsibility.

1. ClassificationandDefinition(Art. 2)

TheRegulationshoulddefineallbatteriesfromlightmeansoftransport–includinglightmeansoftransportwithoutaseat–asportablebatteries,astheyoftenendupwithprivatehouseholdsfordisposal.

Theexclusionofbatteries‘designedforindustrialpurposes’fromtheportablebatteriesinArt.1(7)isnotnecessary.Thisexclusionshouldbedroppedor,alternatively,bemademoreconcrete:‘designedforexclusivelyindustrialpurposes’,soastoavoidanycircumventionoftheEPR-Systemforportablebatteries.

InArt.49(1),werecommendtheadditionofthefollowingboldsection‘...Wherewasteindustrialbatteriesrequirepriordismantlingatthepremisesofprivate,non-commercialusers,theobligationoftheproduceror, where appointed in accordance with Article 47(2), producer responsibility organisations,totakebackthosebatteriesshallincludecoveringthecostsofdismantlingandcollectingwastebatteriesatthepremisesofthoseusers.’

OUR RECOMMENDATIONS

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Limitedrobust,primaryup-to-datedataiscurrentlyavailableonthecarbonfootprintoflithium-ionbatteries(LIB),withtheircurrentclimateimpactrangeestimatedtobebetween39kgCO2e/kWhand196kgCO2e/kWh,equivalenttobetween11,800and89,400kmdrivenbyadieselcar1.Themostenergy-andcarbon-intensivepartofLIBmanufacturingistheproductionchainofbatterycells,responsibleforasmuchas75%ofenergyconsumption.Ascellproductionismainlypoweredbyelectricity,theseemissionscaneasilybereduced.Thetypeofelectricityusedisthereforecrucialtodetermininghowgreenabatteryactuallyis.Theco-signatoriesofthisreportsupporttheCommission’sproposaltoestablishmandatorycarbonfootprintreporting,followedbymaximumemissionthresholds.However,thefollowingimprovementsshouldbemade.

2. Carbon Footprint (Art. 7 & Annex II)

Industry-provideddatashouldbemadepubliclyavailableintheelectronicexchangesystem(asproposedinArt.64),withproceduresputinplacetoindependentlyverifythedataaccuracy(thismustbedonebyanindependentthirdpartyauditorwithgovernmentaccreditation).

InformationshouldbeprovidedbothonCO2(kgCO2perkWhbatteryproduced)andonenergyuse(kWhperkWhbatteryproduced)tohighlightthelowestcarbonbatteriesandmostefficientmanufacturingprocesses.

ThecurrentProductEnvironmentalFootprintCategoryRules(PEFCR)forbatteries2shouldbeupdatedtoincludeupstreamemissions(relatedtomaterialextractionandrefining)andmustincentivisetheuseofrenewableenergyacrossthebatterylifecycle(extraction,production,use,andrecycling).Abalanceofinterestsshouldalsobeensuredbyincludingcivilsocietyintheupdateoftherules.

Themaximumcarbonfootprintemissionthresholds(whichwilltakeeffectfrom2027)mustrequiretheuseofgreenenergyinbatteryproduction.Priortothis,incentivesshouldbeofferedtopromotetheuseofgreenelectricityasmuchaspossible.

Wherecompaniesdonotprovidespecificdata,defaultcarbonintensityvaluesshouldbeusedbasedontheaveragecarbonemissionsdataofthecountrywheretheelectrodes,electrolytesandcellswereproduced.Companiesshouldonlybeallowedtouseloweremissionfactorswheretheycanreliablyprovethattheirindividualprocessesorenergysourcesarecleaner.

Manufacturersshouldonlybeabletoclaimtheuseofrenewableenergyiftheycanprovethisviadirectconnectiontotherenewableenergyplantoracontractdemonstratingatemporal(inrealtimeoratleasteveryhour)andgeographicallinkbetweenenergysupplyanduse.ContractssuchasGuaranteesofOriginaloneshouldnotbeacceptedasvalidevidence.

1. Hans-Eric Melin, Analysis of the climate impact of lithium-ion batteries and how to measure it, 2019.

2. https://ec.europa.eu/environment/eussd/smgp/pdf/PEFCR_Batteries.pdf

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OUR RECOMMENDATIONS

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Supporting technical assessment:InadditiontoreportingthecarbonfootprintdatainkgCO2perkWhbatteryproduced(neededtobeabletocomparebatteriesbeforetheyaresoldandused),itwillbeimportantforbatterymakerstoreporttheirenergyinputdatainkWhperkWhbattery.Improvingtheefficiencyofthebattery-makingprocessisanotherimportantwaytoreducethecarbonfootprintofbatteries.Forexample,onthesamecarbongridintensity,abatterymakerthatuses5kWhofenergytoproduceabatterywillemitmoreCO2thanacompanythatonlyuses3kWh.

Thecalculationmethodologytodetermineabattery’scarbonfootprint(tobedefinedviaadelegatedAct)willbebasedonthePEFCRforbatteries.However,theserulesneedurgentlyupdatingtoaccountforupstreamemissionsassociatedwithmaterialextractionandrefining.Furthermore,aheadoftheadoptionofthedelegatedact,AnnexIIoftheRegulationshouldalreadyspecifyrulesforelectricitysourcing.Forbatterymakerstoprovetheirindividualprocessesorenergysourcesarecleanerthantheaveragegridelectricity,GuaranteesofOrigin(GO)aloneshouldnotbevalidevidenceforsuchaclaim.AsthesalepriceofGOsisnotguaranteed,andthereisnodirectlinkbetweenthemarketvalueofGOsandtherevenuerequiredtomakenewinvestmentsinrenewablepowerattractive,requiringGOpurchasesasproofofrenewabilitywilldonothingtobringadditionalrenewableelectricitycapacitytothesystem.Itcould,therefore,resultinsignificantindirectemissionsfromfossilfuelpowerplants3.Furthermore,thecurrentGOsystemdoesnotaccountforreal-timeenergysourcingoractualenergyfeedsbetweenconsumptionandproduction.

3. Chris Malins, ‘What does it mean to be a renewable electron? Regulatory options to define the renewability of electricity used to produce renewable fuels of non-biological origin’, 2019.

TheCommissionshouldadoptanimplementingAct,layingdownthemethodologyforcalculationandverificationofrecycledcontentassoonaspossible,andby2022atthelatest.TheEUCommissionmustensurethatnopost-industrialrecyclates(PIR)areincluded,sothatonlypost-consumerrecyclates(PCR)areinthetargets4.

Thescopeofthismeasureshouldbeextendedtoportablebatteriesandprimarybatteriesiftheyarenotphasedoutbythen.

ProducersshouldstartcollectingdataonrecycledcontentsthefirstfullyearafterthemethodologyforcalculationandverificationisadoptedbytheECandreportontheresultssixmonthsafterthereferenceyear.

Recycledcontenttargetsshouldbesetataminimumleveltobeachieved1-2yearsafterthereportingobligationisputinplaceandthenrevisedupwardsbasedontheinformationthatisobtainedandproperstudiesdoneontheavailabilityandfeasibility.

TheECmustensurethatrecyclatesareexclusivelyfromrecycledbatteries,topromoteclosed-looprecyclingandtoavoidrecyclatesthatareavailableanywaybeingdivertedtomeettargets,withoutactuallyrecyclingmore.

ItisimportantthatthenewRegulationfollowstheobjectivesexpressedintheCircularEconomyActionPlan(CEAP)thatpromisespolicysupportforrecycledcontentasadriverforuptakeofsecondarymaterials,andtosecurethemarketagainstvolatilityofpriceofprimarymaterials.AsEuropeisfacingagrowingdemandforbatteries,itiscrucialtodesigncorrectpoliciesdrivingitscircularity,notonlyforthebenefitoftheenvironment,butcruciallyforthesustainabilityoftheEuropeanbatteryindustry.ThatiswhywewelcometheprovisionsstipulatedinArticle8.

However,thetimelineproposedshouldbebroughtintoeffectsooner.TheCommissionshouldproposeanambitiousandtransparentmethodologyforthecalculationandverificationofrecycledcontentassoonaspossible,followedbymandatoryproducerreportingontherecycledcontentvalues,inordertoaimtoreachthefirsttargets.Thetargets,however,shouldbere-evaluatedaccordingtothereportinggatheredanddevelopmentsintechnology,notablynewchemistryandrecoveryimprovements.ThescopeoftheseobligationsshouldnotbelimitedtoEVandindustrialbatteriesonly,butalsocoverportableandprimarybatteries.

Moreover,theobjectiveforrecycledcontent,whichisoneoftheprinciplesofacirculareconomy(CE),mustalsoapplytootherproductcategoriesbeyondbatteries.Recycledcontentinhigh-endapplicationsiscrucialtoextendthevalueofresourcesandtokeeptheirhighqualityandavoidleakagetowardsotherapplicationsthroughdowncycling.

3. Recycled Content (Art. 8)

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4. See also joint position paper “Determining recycled content with the ‘mass balance approach’: 10 recommendations for development of methods and standards”, February 2021.

OUR RECOMMENDATIONS

Supporting technical assessment:Recycledcontentcanreducethecarbonfootprintofbatteriesandwillalsoreduceenvironmentalandsocialimpactsrelatedtoextraction.Theincreaseindemandforsecondarymaterialswillstimulatecollectionandqualityrecycling,aswellasinfluencethedesignofbatteries.Achainofcustodymethodtoverifyandtracerecycledcontentsmustbedeveloped,butbeforeitisoperational,reportingshouldbemanagedthroughsupplychaindocumentation.ThestandardEN45557onrecycledmaterialscanbeusedasareferenceforenergy-relatedproducts.Whatshouldbeexploredfurtherisapossibilitytocheckrecycledcontentbasedontheamountofrecycledmaterialsusedforannual/semestrialproduction,notonaproductbase(notcheckingeverybattery),butbatchesofbatteries(followingaso-called‘batchlevelmassbalance’)andtargetinganaverageintegrationofrecycledcontent.Inparallel,amethodtocalculateanddeclarethebattery’scarbonfootprintshouldbedeveloped,aswellasdetailsonhowtointegratetherecycledcontent(likePEF).Thesamestandardsshouldbeappliedtorecycledmaterialsastovirginones,withregardstoperformanceandchemicalcontents,andthepotentialincentivesandobligationsshouldclearlyrefertothis.

Thisiscrucialtoforcetheindustrytofinallyimproveitsrecyclingtechnologies,sothatlessmaterialgetslostandmorematerialcanberecoveredduringtherecyclingprocess.Infact,theindustryisdevelopingtooslowlyandtheabovementionedshort-andmedium-termgoalsareveryimportanttoincentivisecompaniestoinvestinimprovedrecyclingtechniques.

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Recycled content can reduce the carbon footprint of batteries and will also reduce environmental and social impacts related to extraction. The increase in demand for secondary materials will stimulate collection and quality recycling, as well as influence the design of batteries.

TheprovisionssetoutinArticle9shouldapplytoallportablebatteries,notonlytheonesingeneraluse,aswellasbatteriesforlightmeansoftransport.

Insteadofthenominalcapacity,theactualmeasuredcapacityshouldbedefinedasthestartingpointforthespecifications,otherwisemanufacturerscanarbitrarilychangethenominalcapacitytofalselycomplywiththespecifications.

TheproposedrestrictionsonthedelegatedActassetoutinArticle9forportablebatteries,regarding,forexample,costs,competitiveness,functionalityetc.mustbedeleted,asthiswillbereviewedinthelegislativeprocessanyway.Beyondthis,werecommendthatthecriterialistedinAnnexIIIshouldbeviewedasminimumcriteriaandamendmentstotheseshouldbepossibleovertime,astechnologicalandscientificpossibilitiesadvance.

Single-use,disposableprimarybatteriesshouldbearareexception.TheEuropeanCommissionshouldgivemoreconcretesignalsforaphase-outofsingle-usebatteriesandassessthefeasibilityofaphase-outby2025atthelatest.Theassessmentshouldtakeintoaccountthefullpicturewhenassessingcost-benefit,notablythereductionincostsandimpactsoncollectionandtreatmentofsingle-usebatteries.Thestudyshouldobjectivelyassesswhichlimitednumberofdevicesmustcontainprimarybatteriesandwhichcouldbemodified.Theburdenofproofshouldbeonproducersofprimarymaterialstodemonstratetheabsoluteneedandvalueofsingle-usebatteries.However,inpreparationforthebanondisposablebatteries,alevyshouldbeplacedonthemwiththeviewtopromotethosedevicesthatcouldclearlyuseapowercableorarechargeablebattery,suchastoys,wirelesscomputerequipmentandlamps.

Theproposalcontainsprovisionsontheperformanceanddurabilityofbatteries,bothforportablebatteriesofgeneraluse(Art.9)andforindustrialandEVbatteries(Art.10).

Regardingportablebatteriesofgeneraluse(wherethemostcommonformatsareAAandAAA),theEChasregretfullyabandoneditsattemptsofprogressivelyphasingoutnon-rechargeablesingle-usebatteries(asstatedinitsCircularEconomyActionPlan)andoptedforminimumperformanceanddurabilityrequirementsinstead.ThesewillbeadoptedwithadelegatedActby2025andenterintoforcefrom2027;theestablishmentofminimumrequirementswillbuildoninternationalandEuropeanstandards.Bytheendof2030,theEuropeanCommissionwillassessthefeasibilityofmeasuresthatwouldphase-outsingle-useportablebatteries.

MeasuresforindustrialandEVbatteriesarecoveredbythesameprovision,butminimumperformancerequirementswillonlyapplytotheformerthroughaDelegatedAct.EVbatterymanufacturerswillonlyhavetoprovidetechnicaldocumentationoftheperformanceanddurabilityvaluesoftheirproducts,aswellasthespecificationsandstandardsusedforthecalculation.

4. Performance and Durability Requirements (Arts. 9-10)

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OUR RECOMMENDATIONS

Supporting technical assessment:Regardingportablebatteriesingeneraluse,theECscrappedtheinitialplanofaphase-outofnon-rechargeable,single-usebatteries.Theinitiativewasstronglyopposedbyindustry5,whicharguedthattheso-called‘low-drain’applications(suchasremotecontrols,wallclocksandsmallmedicaldevices)stillneedednon-rechargeablebatteries.Whilethisstatementcouldbetrueforcertainapplications,thiscannotbeareasontostillallowsingle-usebatteriesonthemarket,eveniftheyarebetterperformingandonlybasedonindustryclaims.

TheECalsodroppedtheoriginalideaofsettingminimumperformancerequirementsforbothindustrialandEVbatteries.Theimpactassessment(IA)accompanyingtheECproposalstatesthatEVbatterymanufacturersaredrivenbycompetitiontoimproveround-tripefficiency.Thismeansthatifperformancerequirementsweresettoolow,theywouldbepointless,andiftheyweretoocomplex,theycouldhamperinnovation.However,theIAstatesthatthisisnottrueforallmarketsorapplications,whichjustifiestheestablishmentofacommonsetofrulesforindustrialbatteries(i.e.stationaryindustrialbatteries).

Settingspecifictargetsatthisearlystagecouldintroducethresholdeffectsformanufacturers,whoatacertainpointmightbecontenttolimittheirperformancetoathresholdthatisalreadysurpassedbytheirtechnicalcapacity.Forexample,performancerequirements,asstatedintheImpactAssessment,arealreadyquitelowandareeasilyattainablebytheindustryeventoday.Inaddition,astheImpactAssessmenttextcorrectlyacknowledges,measurementofperformanceindicatorsservingtoestablishperformancecriteriaisnotoriouslycomplex,althoughbynomeansimpossible.Differentiatingrequirementsbetweenapplicationscouldthussavesomeadditionalcoststosomemarketoperatorsforwhomthiswouldnotbenecessary.

Theproposalofbuildingapubliclyaccessibledatabaseofreal-lifeperformancedataismorethanwelcomeandiscertaintocreateconsiderableimpactbyenablingresearch,strengtheningmarketconfidence,anddrivingcompetition.However,wewouldliketoinsistthatsuchaplatformshouldbemadepubliclyavailable.

Concerningadministrativeburden,wearegladtoseethattheImpactAssessmentcorrectlyacknowledgestheroleofcertifyingauthorities.

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5. Joint industry statement on the impact of restricting primary batteries in Europe, October 2020.

The EC also dropped the original idea of setting minimum performance requirements for both industrial and EV batteries. The impact assessment (IA) accompanying the EC proposal states that EV battery manufacturers are driven by competition to improve round-trip efficiency.

Thescopeofbatteryremovabilityandreplaceabilityshouldbeextended–inparticulartolightmeansoftransport.AminimumsetofstandardsforbasiccomponentsshouldalsobeestablishedforEVandindustrialbatteries.

Exemptionsshouldbereservedfornicheapplicationsonly,andwhereapplicableaccompaniedbyaninformationrequirementontheimpactontheproductlifetime.

Batteryremovabilityandreplaceabilityshouldbemorepreciselydefinedandbasedonreversiblenon-destructivedisassemblyusingcommonlyavailabletools.

Batteryreplaceabilityforportablebatteriesshouldbepossibleforprofessionalrepairersandend-users.

Alltypesofbatteriesmustbeeasilyreplaceablebyprofessionalrepairers,andportableonesbyend-usersandcommunityrepairinitiatives.

Batteriescontainingseveralcellsmustbemodularindesignsothatthecase,controlelectronicsorindividualcellscanbereplacedbyprofessionals.

Inallcases,professionalrepairersshouldencompassbothaffiliatedandindependentrepairers.

Batteries,aswellastheirmaincomponents(cells,packs,casingandmainboard),shouldbeavailablefortheexpectedlifetimeoftheapplicationassparepartswithareasonableandnon-discriminatorypriceforindependentqualifiedpersonnel.

Repairinstructionsshouldbeavailableforalltypesofbatteriesandalldeviceswithbatteries,atleastforprofessionalrepairers.Portablebatteriesshouldhaverepairinstructionssuitableforend-usersandcommunityrepairinitiatives.

Forbatterieswithacontrolsoftware,themanufacturershouldprovidesoftwareupdatesfortheexpectedlifetimeoftheproductthatensurethesafeuseofthebatterywithoutlimitingitsfunctionality,orotherwisepublishthesourcecode.

Softwaremustnotbeusedtoimpingebatteryreplacement–forexampleusingupdatesorserialisation.

Batterymanagementsystemsinalltypesofbatteriesshouldbereadablebyend-users,andindependentqualifiedpersonnelshouldbeabletomodifythemforthepurposesofreuse.

Extendingthelifetimeofbatteriesandthedevicestheypowercanhelptoreduceouroverallenvironmentalfootprint.Ensuringthatbatteriesareremovableandreplaceableindevicesisanecessaryrequirementto:

• Enabledevicestohaveafunctionallifetimelongerthantheexpectedlifeoftheirbatteries;

• Allowkeycomponentstobeeasilyreused,refurbished,repairedorrecycled;• Allowbatteriesthemselvestobereusedinalternativeapplicationsoncetheyreachareducedstateofhealth.

Addressingtheseaspectsrequiresfar-reachingecodesigncriteriaforbatteriesthatgobeyondthedurabilityrequirements(part4)andthoseforthesecondlifeofbatteries(part8).TheproposaloftheEUBatteriesRegulationaimstoaddresstheseaspectsinArticle11buthasanumberoflimitations.

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5. Replaceability, Repairability and Reusability requirements (i.a. Art. 11)

OUR RECOMMENDATIONS

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Supporting technical assessment:Thescopeoftheremovabilityandreplaceabilityrequirementshouldbeclarified.Itshouldnotberestrictedtoportablebatteries,butinsteadapplytoallproductscontainingbatteries–includingbothbatterypacksorcells.Ataminimum,batteryremovabilityandreplaceabilityshouldalsobepossibleforlightmeansoftransportsuchase-bikes.Inthesecases,thisistoavoidthesituationwherethebicycleitselfmustbereplacedafterthebatteryfails–whichis,onaverage,just2-4years.BatteryremovabilityforindustrialproductsandEVsmustalsobearequirementbut,wherenecessary,mayonlybepossibleforprofessionals.

Alimitednumberofexemptionsmaybepossiblefornicheapplicationsonly,wherebatteryintegrationisimpossibletoovercome–theCommissionproposalonthisaspectoutlinedinArticle11isreasonablydefined.Fortheselimitedexemptions,clearproductinformationshouldillustratetoconsumersthatthedevicecontainsanon-replaceablebatteryandthereforehasalimitedlifetime.

Batteryremovabilityandreplaceabilityshouldalsobemorecarefullydefined.Itshouldbeunderstoodasnon-destructivedisassembly,orreversibleextractionofthebatterypackorcell(s)fromthedeviceorconstituentcomponentswithoutfunctionaldamagethatwouldprecludereassemblyorreuse.Batteryremovabilityandreplaceabilityshouldbepossibleforportableelectronicsandlightmeansoftransportwithcommonlyavailabletools(inlinewithEN45554:2020).Adhesivesshouldalsonotbeacceptedasappropriatefastenersforbatteries.ForEVs,sincecompletedesign

harmonisationatmoduleandpacklevelmaynotbepossible,atrade-offwouldbetopreventtheuseofproprietarytools,andestablishaminimumsetofstandardsforbasiccomponents,suchasliftingparts6.

Accesstotheremovabilityandreplaceabilityrequirementshouldalsobeclarified.Inthecaseofportablebatteriesandlightmeansoftransport,batteryremovabilityandreplaceabilityshouldbepossibleforbothprofessionalrepairersandend-users(includingcitizensandcommunityrepairinitiatives).Thetermprofessionalrepairershouldbeunderstoodtoencompassbothrepairersaffiliatedtothemanufacturerandindependentprofessionals.Forothervehiclesandindustrialproducts,batteryremovabilitymustapply,butmayonlybepossibleforprofessionals(bothaffiliatedandindependent).

Batteriesshouldalsobemadeavailableasspareparts.Wherebatterypacksorcellsareanon-standardformat,sparebatteriesshouldbeavailableforaperiodmatchingtheexpectedlifetimeoftheproduct(forexample,asdefinedintheecodesignrequirement).Wheretheproductlifetimeisnotdefinedinlegislation,sparebatteriesshouldbemadeavailableforaminimumof20years.Batterysparesshouldhaveanon-discriminatingandreasonablepriceforbothindependentprofessionalsandend-users,withrespecttotheoverallpriceoftheproduct.Thebatteryshouldbeavailablefororderandshouldbedeliveredinareasonableperiodoftime(e.g.10workingdays).Besides,ifseveralcellsareinstalledinabattery,professionalsmustbeabletoreplacethesefairlyeasily(modulardesign).Nevertheless,inthecaseofportableelectronicsandlightmeansoftransport,completebatterypacksshouldbeavailableassparestoend-usersandprofessionals.

Toensuresafety,removabilityandrepairinformationshouldbemadeavailable.Forportableelectronicsandlightmeansoftransport,thisshouldbemadepubliclyavailableatthepointofsaleoronapublicwebsite.Repairinformationshouldincludeadisassemblymapor“explodedview”,alistofrequiredtools,informationtoidentifytheproductanditscomponents,wiringandconnectiondiagrams.ForEVs,thesameinformationshouldbeavailabletoprofessionalrepairersinanon-discriminatorymanner.

Insomecases,effectivebatteryremovalorreplacementmayrequiresoftwareinadditiontohardware.Wherebatteriesorthedeviceiscontrolledbysoftware,thissoftwareshouldnothinderbatteryreplacementandproductfunctionality.Serialisationorpairingofbatteriestodevicesshouldnotbepermitted.Ifserialisationisnecessarytothefunctioningofthedevice,diagnostictoolstoinstallnewbatteriesshouldbemadepubliclyavailable.Asforsparebatteries,softwareupdatesshouldbeavailablefortheexpectedlifetimeofthedevice.Theseupdatesshouldensurethecontinuedsafetyofthebatterywithoutcompromisingitsfunctionalityorapplication.Ifthemanufacturernolongerissuesupdatesforthesoftware,thesourcecodeofthesoftwaremustbedisclosedsothatindependentprogrammerscansetuptheupdatesneededforcontinuedsafeuseofthebattery.

Wheneverbatteriescontainabatterymanagementsystem(BMS),i.e.inEVandindustrialbatteries,itmustbeaccessibleandreadablebythebatteryowner,forexampletodeterminethecurrentcapacityandpastchargingcycles.Forthepurposeofreuse,itmustbelegallyandtechnicallypossibleforprofessionalstochangetheBMSfunctionalityandthecontrolsoftware.Thiswould,forexample,allowthereprogrammingofanEVbatteryasstationaryelectricitystorage.

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In some cases, effective battery removal or replacement may require software in addition to hardware. Where batteries or the device is controlled by software, this software should not hinder battery replacement and product functionality.

6. ECOS, The positive side of batteries: the role of standards in supporting sustainability requirements for batteries, May 2020.

Anothergapinthecurrentbatterylegislationandinthewholevalue-chainisthelackofbatterylabellinganddataprovisionthatcanbeusefulbothtoconsumersandtofacilitaterepair,reuseandrecyclingofbatteries.

TheCommissionhasthereforeproposedafullchapteronlabellingandinformationrequirements,aswellastheset-upoftheso-called“batterypassport”,whichwillallowforaneasierencodeddatatransferonbatteries.Weappreciatethemeasureofbatterylabelling,especiallyinregardtorecycledcontentandcarbonfootprint,whichwillbeusefulconsumerinformation.

Wealsowelcometheprovisiononthestateofhealthandexpectedlifetimeofbatteries.AccesstotheBatteryManagementSystem(BMS)isindeedcrucialforbatteryreuseanduseinVehicle-to-Gridandsmartchargingapplications7.Thismeasureunlocksatremendouspotential,sinceitenables:

1. Reuseoftheentirebatterypackwithoutneedingtodismantle.Thisincreasescost-efficiencyforsecond-lifebatteries,sinceestablishingcommunicationwiththeexistingBMSallowstherepurposeandremanufacturingoperatortoavoiddismantling,testing,andsorting,aswellasdiscardingbatterypackandcontrolsystemmaterials.

2. IntegrationoftheBMSwithinacompleteVehicle-to-Gridcontrolchainthatcanbeenabledbyindependentmarketparties,whomayusethebatterytoprovidegridstabilisationservices.

Historicdataallowforsignificantbreakthroughsandactivateanimportantinnovationpotential.Wealsowelcomethemeasureonthebatterypassport,whichwillcertainlyincreasemarketconfidenceandwillallowthebatteryandEVmarketstoflourish,whileincreasingmaterialefficiency.

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6. Information Requirements (Arts. 13, 14 and 65)

Thelinksbetweenthetechnicaldocumentationonperformanceanddurabilityparameters(seechapter4)andthedataonthestateofhealthandremaininglifetime(chapter8)shouldbemoreclearlydefined.

Thereshouldbeaprovisionononlinesaleswhereinformationoncollectionrequirementsisricherandmoredetailed.

Thereisaneedforoverarchingeducationalcampaignsandinformationatthepointofsale,financedbytheEPRfeesfrommanufacturers,tobetterinformend-users.

Informationonsingle-usebatteriesshouldindicatetheapplianceswhereitwouldbemoreappropriatetousearechargeablebatteryinstead.

ThenewRegulationforBatteriesshouldbecleareronwhowilldevelopthedataformatsandparameterslistedinAnnexVII.

7. ECOS, Moving up a gear: ECOS vision on clean and smart mobility, December 2020.

OUR RECOMMENDATIONS

Thecollectionofbatteriesisfundamentaltopreparingthemforreuseorrecyclingsothatresourcesarerecoveredandpollutantsarenotreleased.Inotherwords,thestrictestrecyclingorsecond-liferequirementswillnothelpifthebatterieshavenotbeencollectedproperlybeforehand.EventhoughtheproposaloftheEUBatteriesRegulationprovidesforasignificantimprovementinthecollectionofportablebatteries,essentialtargetsarestillmissing,especiallywithregardtothecollectionofbatteriesfromlightmeansoftransportandindustrialandEVbatteries.

Wewelcometheproposedincreaseinmandatorycollectiontargetsforportablebatteries,butdonotconsiderthemhighenough.Thecollectiontargetforportablebatteriesshouldberaisedfrom70%to85%from2030.Anambitiouscollectiontargetforbatteriesfromlightmeansoftransportmustalsobeset.Thecalculationofthiscollectiontargetshouldtakeintoaccountthelifetimeofthosebatteries.Inadditiontoacomprehensivenetworkoffreecollectionpoints,ambitiouscollectiontargetsforbatteriesfromlightmeansoftransportneedtobeimposedonmanufacturersorPROsbecausetheyoftenendupinprivatehouseholdsandinwastebins.Otherwise,batteriesfromlightmeansoftransportwillbecollectedtogetherwithportablebatteriesandincludedwronglyinthequotafulfilmentofthecollectiontargetforportablebatteries.

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7. Collection Rates (Arts. 48, 49 and 55)

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Thereshouldbeacomprehensivenetworkoffreecollectionpointsinplaceforalltypesofbatteries.

Thecollectiontargetforportablebatteriesmustberaisedfrom70%to85%from2030onwards.

Forbatteriesoflightmeansoftransport,acollectiontargetof90%from2025shouldbeimplemented;herethecalculationmethodologyshouldtakeintoaccountthelifespanofthesebatteries.

Adeposit-returnsystemshouldbeintroducedforportablebatteries,bothprimaryandrechargeableLi-ionbatteriesandbatteriesoflightmeansoftransport.

Thereshouldbeanambitiouscollectiontargetoratleastanincentiveforreturningindustrial,automotiveandEVbatteries.

Inparticular,lithium-ionbatteriesinappliancesandlightmeansoftransportposehighrisksoffireifnotcollectedcorrectly.Therefore,adeposit-returnsystemshouldbeestablishedforthem,asalreadyinplacebysomemanufacturers.TheamountofthedepositshouldbehigherthanthematerialpriceandlowerthantheproductionpriceoftheLi-ionbattery.Depositedbatteriesshouldalsobepermanentlylabelledassuch,wherebythelabellingmustalsoenablevendingmachine-supportedtake-back.

Thecollectionofindustrial,automotiveandEVbatteriesisnotensuredthroughtheproposedmeasuresandthereisariskofillegaldisposalorillegalexportofsuchbatteries.Thereisalackofconcretisationoftheareacoverageoffreecollectionpointsandalackofincentivesorbindingtargetsforcollection.First,itshouldbeclarifiedthatproducershavetoensureanetworkofcomprehensivefreecollectionpointsforindustrial,automotiveandEVbatteries,soaprivateorcommercialend-userdoesnothavetotravelmorethan10kminurbanregionsand30kminruralregionstoacollectionpoint.Inaddition,thereshouldbeasufficientincentiveforreturnsorhighcollectiontargetsforthesebatteries,takingintoaccounttheirlifetime.

In particular, lithium-ion batteries in appliances and light means of transport pose high risks of fire if not collected correctly. Therefore, a deposit-return system should be established for them, as already in place by some manufacturers.

OUR RECOMMENDATIONS

AspecificnewprovisionoftheproposalclarifiestheframeworkfortherepurposingofEVandindustrialbatteriesthatreachtheendoftheir(first)life.Usingsecond-life(repurposed)batteriesasstationaryelectricitystorageunitsislikelytoofferthegreatestpotentialofenvironmentalbenefitsinthisarea.Second-lifebatteriescanextendthelifespanofthebatterywiththetwofoldeffectofsignificantlyimprovingthelifecyclefootprintofthebatteryandavoidingtheproductionofnewstoragebatteries.Accordingly,preventionandreuseisclassifiedatlevel1,preparationforreuseatlevel2andrecyclingatlevel3oftheEuropean waste hierarchy.Whiletheproposalsetsfar-reachingtargetsforrecycling,therearenoneinplaceforrepurposingandremanufacturing,whichshouldbeprioritised.

Theproposalalsoclarifiesthecriteriaforwastebatteriestobesubjecttorepurposingorremanufacturingandtostopbeingwaste.Therolesofthemainactorsinvolvedintheproductionandrepurposing/remanufacturingarealsobetterdefined:therepurposing/remanufacturingoperatorisconsideredasthemanufacturerofthesecond-lifebatteryandassuchtheywillneedtocomplywiththerelevantrequirementsandrunthecharacterisationtestsfortheirbatteries.

Providedthatitispossible,thebatteryshouldbereused,andthermalrecoveryordisposalshouldbeprohibited.Beforeanindustrial,automotiveorEVbatteryisrecycled,itshouldbecheckedforthepossibilityofreuse.Recyclingshouldonlybepossibleinsofarasreuseistechnicallyandeconomicallynotfeasible.Thistestingshouldbedocumentedandpassedontotheauthoritiesforcontrolandstatisticalpresentation.

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8. Second-life batteries (Art. 59)

Beforeanindustrial,automotiveorEVbatteryisrecycled,itmustbetestedforthepossibilityofreuse.Inthosecaseswherereuseistechnicallypossible,economicallyfeasibleandwherethereisamarketforthereusedbattery,thebatterymustbereused.

Informationneededtoallowforrepurposingorremanufacturingshouldgobeyondthestateofhealthparameterandalsoincludedatanecessarytoevaluatetheremaininglifetime,suchasenergyorpowerthroughput,errorsortemperaturehistory.

Safetycertificatesshouldfigureamongrelevantinformation,andArt.59(3)shouldproposesomemorespecificrequirementsorstresstheneedtohavetechnicalspecificationsonqualitycontrols.

InordertoenhancethereuseofEVsandanextensionofthevehicle’slifetime,theBatteryRegulationshouldacknowledgetheroleofcertifyingentitieswhoruntechnicalcontrolsandsalesinthesecond-handmarket.

OUR RECOMMENDATIONS

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Supporting technical assessment:Theproposaltakestwosystemicapproachesindataprovision,onebeingtheprovisionof“spot”dataonparametersrelatedtothestateofhealthandtheotherbeingparametersrelatedtoremainingdata.Thesevaluesgiveapictureofthesituationofthebatteriesinafixedmoment,buttheyarenotsufficienttodescriberemainingbatterylifetime;thesevaluescanevenbedeceptivetotheendconsumer,asparameterssuchascapacityfadeorround-tripefficiencydonotevolvelinearlyovertime.Hence,itisimportanttoensurecustomersandsecond-lifeoperatorsarealsoinformedabouttheremaininglifetimeandnotonlyonthestateofhealth.

IntheAnnexaccompanyingthismeasure,thesevaluesareclearlymentioned,whichispositive,althoughotherparametersshouldalsobemadeavailable,suchaserrors,orcelltemperaturehistory.Forexample,itisalreadywellestablishedthatbatteriesinwarmclimateshavealowercyclelifetimeandshelf-lifethanincolderclimates;EVbatteriesusedincolderclimatesmayevenoutlivethevehicleitself.

Moreover,thisinformationobligationdoesnotincludeotherpotentialdefectsthatmightleadtobatteriesbeingdiscarded.Forexample,batteriesmaybediscardedbecauseofadefectiveBMS,whichcouldleadtoshort-circuitsandfires.Althoughoriginalequipmentmanufacturers(OEMs)orcardealersmayhavethisinformationfromexperience,second-lifeoperatorscannotsafelydeducethis,whichmayputtheirprocessatrisk.

Thedemandforsuitableautomotivebatteriesandforbatteryrawmaterials,inparticularcobaltandlithium,willcontinuetoincreaseastheEVmarketexpands,makingbatteryrecyclingparamount.Theultimategoalshouldbetofullyrecoverallthevaluablematerialsinabatteryattheendofitslife–notablylithium,nickelandcobalt–so,forexample,from10kgofcobalt,atleast9kgisavailabletomakenewbatterycellsinsteadofminingvirginrawmaterials.

Althoughrecyclingandrecoveryratesremainlow(inEurope),manyofthesematerialshaveahightechnicalrecyclingpotential,withhighratesalreadybeingachievedcommerciallyinotherregions.Ensuringinvestmentinandincreasingthecostcompetitivenessandefficiencyofsortingandrecyclingtechnologies–boththroughR&Dfundingandambitiousregulatorytargets–isthusapriority.Withthisismind,theCommission’sproposedtargetsinAnnexXIIPartCforminimumratesoflithium-ionbattery(LIB)materialrecovery(90%forcobalt,nickelandcopperin2025,then95%in2030;and35%forlithiumin2035and70%in2030),inparticularforlithium,canandshouldberevisedupwards.

Supporting technical assessment:Extractingatonoflithiumrequires1,900tonsofwater(consumedbyevaporation),whereas,accordingtotheCommission’sImpactAssessment,secondaryproductionfromrecyclingwouldrequireonly28tonsofusedLIBs(oraround256usedelectric-vehicleLIBs)8.InChile’sSalardeAtacama,amajorcentreoflithiumproductionandwhereover60%oftheregion’swaterisusedformining,thereisevidenceofshrinkingpasturelands,failingcrops,anddisappearingfloraandfauna.

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9. Recycling Targets (Art. 57)

Setambitiousrecoverytargetsof95%forcobalt,nickelandcopperin2025,then98%in2030.

Thecurrentproposedlithiumrecoverytargetsareparticularlylowandignorecurrentbestpracticerecyclingtechnologies.Lithiumrecoverytargetsshouldbesetforatleast70%recoveryin2025and90%in2030.

Additionalrequirementsshouldapplyonrecyclingqualitytoensurepartofitisbatterygrade(nodowncycling).

8. European Commission Impact Assessment report, SWD (2020) 335 final, PART 1/3

OUR RECOMMENDATIONS

A2019studylookingintoLIBrecyclingformobilephonesshowedarangeofrecoveryratesforlithium,from76%to95%,withmostrecoveryratesreachingatleast90%.Automateddisassemblymethodsanddirectrecycling(comparedtopyrometallurgyandhydrometallurgy)canimproveratesfurther.Forcobalt,thesamepaperstatesthatextractionyieldswereintherangeof97–99%.InChina,officialgovernmentguidancesetsrecoveryratesat98%forcobaltandnickeland85%forlithium.Althoughnot(yet)binding,companieswhodonotfulfiltherequirementswillnotreceivethegovernmentsupporttheyotherwisewould,neitheratstatelevelnorataprovinciallevel.Finally,LIBrecyclersinNorthAmerica(Li-Cycle)andSingapore(TES)arealreadyachieving90%+recoveryratesonlithiumthroughamixtureofphysicalandchemicalrefinement.

Raisingtheambitionofthematerialrecoverytargetsinlinewiththeaboverecommendationsreducesbytwo-thirdsthequantityoflithium,nickelandcobaltlostcomparedtotheCommission’sproposedtargets.Thismeansthat,inthelong-run–wheninternalcombustionenginecarsarefullyphasedoutandhighvolumesofEVbatteriesaregoingtorecycling–theproposedrecyclingtargetswouldreducebyafactorofthreetheamountofprimarylithium,andby2.5theamountofnickelandcobalt,requiredtomakenewbatteriescomparedtothecurrentCommissiontargets.Inacontextwhere,forEVbatteriesalone,theEU will need 18 times more lithium and 5 times more cobalt in 2030(andalmost60timesmorelithiumand15timesmorecobaltin2050),theseimprovementswillgoalongwaytowardsstrengtheningthesecurityofthesupplyofthesematerialsinEurope.Finally,whilerecyclingisawaytoreducetheuseofprimaryrawmaterials,itisalsoimportanttoacknowledge,asapriority,theneedtodrasticallyreduceEurope’soverallprivatevehiclefleetandcreateasupportivelegislativeframeworktothisend.

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Inadditiontotheminimumrequirementsmentionedinourpositionpapertoremoveenvironmentally-harmfulbatteriesfromthemarket,incentivesareneededtopromotethedistributionofparticularlyenvironmentallyfriendlybatteries.Thisincludesbetterlabellingofbatteries(e.g.withregardtotheircarbonfootprint,rechargeability,repairabilityorrecyclability),sothatconsumerscanchoosetobuythebestbatteries.Inaddition,theEUEcolabelshouldalsobeavailableforbatteriesortheapplicationthatpowersthebattery.PublicprocurementshouldbeobligedtogivepreferencetobatterieswithEUEcolabelorequivalentcharacteristics.Tomakeiteasierforprocurementofficestochoose,thecreationofaproductdatabaseshouldshowwhichbatteries(applications)areparticularlyenvironmentallyfriendly.

10. Incentives for Sustainable Batteries (Arts. 13 and 70)

Consumersshouldbeabletobetteridentifymoreenvironmentallyfriendlyportablebatteriesthroughmandatorylabelling.

TheEUEcolabelshouldalsoapplytobatteriesortheapplicationsthatpowerthebatteries.

Publicprocurementshouldgivemandatorypreferencetothebestavailableenvironmentallyfriendlybatteriesthroughaproductdatabase.

OUR RECOMMENDATIONS

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In addition to the minimum requirements mentioned in our position paper to remove environmentally-harmful batteries from the market, incentives are needed to promote the distribution of particularly environmentally friendly batteries.

OnlinemarketplacessellhugeamountsofbatteriesintheEUthatdonotcomplywiththelegalenvironmentalandconsumerprotectionrequirements.Atthesametime,itisnotpossibletotakeeffectiveactionagainstsuppliersoperatingillegallyfromoutsideEurope,astheplatformoperatorsarenotlegallyresponsiblefortheproductstheyoffer.Thislegalloopholethreatenstheexistenceoflegallyoperatingtradersandendangerstheenvironment,aswellasconsumers.

Counterfeitssoldviaonlinemarketplaces,aswellasproductsthatdonotconformtothelaw,suchaselectronicgoods,children’stoysorcarparts,poseamajorsafetyriskandarepotentiallylife-threatening.Inaddition,batteriesregularlyfailtocomplywithlegalregulationsontake-back,registrationorenvironmentallysounddisposal.Suchsuppliersavoidpayingdisposalfees,jeopardisethefinancingoffunctioningdisposalstructuresandincreasethecostsforcompaniesthatcomplywiththelegalregulations.TheOrganisationforEconomicCo-operationandDevelopment(OECD)estimatesthatbetween500,000and1,000,000tonnesofelectricalappliancesaloneareillegallyplacedonthemarketintheEUeachyearbyso-calledfreeriders.Inaddition,itisdifficultforconsumerstoenforcetheirrightsintheeventofdamage,suchasafirecausedbyashortcircuit,especiallywhendealingwithsellersfromnon-Europeancountries.Aparticularproblemhereisthatonlinemarketplacesoftensellproductsoflowquality,withsafetyflawsorhighlevelsofpollution.

11. Stop Illegal Imports of Batteries

Ifthereisnoactoravailabletotheconsumers,onlinemarketplacesandfulfilmentserviceprovidersmusttakefullresponsibilityfortheproductstheyoffer.Hence,theymustbelegallydefinedasactorsinthesupplychain–forexampleasdistributors.

Onlinemarketplacesandfulfilmentserviceprovidersmustbesubjecttocomprehensiveduediligenceobligationsfortheproductstheyoffer.Thisincludes,forexample,checkingthatthemanufactureranddistributor’sobligationsarecompliedwith.

Onlinemarketplacesmustprovidethesupplier’sfullcontactinformationand,inthecaseofelectricalequipment,batteriesandpackaging,themanufacturer’sregistrationnumberontherelevantproductwebsite.

OUR RECOMMENDATIONS

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Asdemandforbatteries(inparticularEVbatteries)grows,itiscrucialthatthetransitiontoazerocarboneconomydoesnotcomeattheexpenseofenvironmental,socialandhumanrightsabusesincountrieswherebatterymaterialsaresourced.Policymakersneedtoensurethatminingcompaniescleanuptheirsupplychainsandputinplacerobustgovernancestructurestoensureethicalsourcingofbatterymaterialsandpreventhumanrightsandenvironmentalabuses.Strongduediligencerequirementsforbatteriesshouldbecometheblueprintforfuturehorizontalduediligencelegislation.TheCommission’sproposaltomaketheOECD due diligence guidelinesforresponsiblesupplychainsbindingoncompaniesplacingbatteriesontheEUmarketiswelcome,butcertainloopholesremain.

WhilsttheforthcomingEUhorizontalsupplychainduediligencelegislationiswelcomeandneeded,theBatteriesRegulation,whichwillcomefirst,shouldsetthebarhighonscopewithbroadsectoralcoveragebyexpandingtomorerawmaterials.Thus,thelistofrawmaterialscoveredunderduediligencerequirementsinAnnexX(1)shouldbeexpandedtoincludecopper,ironandaluminium(bauxite).Copperandcobalt(thelatterisincludedonthelist)areoftenminedtogether,wherecobaltisabyproductofcopper(andnickel)mining,e.g.inthe Copper-CobaltbeltintheDemocraticRepublicoftheCongo(DRC).Sincetheyareminedtogether/closetoeachother,theenvironmentalimpactisoftensimilar.Withouttheinclusionofcopper,theriskisthatthenewruleswillcreateatwo-tiersystemwith‘clean’cobaltminedalongside‘dirty’copper,withnooversightorcontrolsonthelatter.Thedemandforironandaluminium(bauxite)forvehicleswithelectricenginesisprojectedtoincreaseby13to14timesbetween2019and20309.Futuretechnologiescouldmassivelyincreasethedemandforaluminium.Regardingtheextractionofthosemetals,humanrightsviolationsandenvironmentaldestructionhavebeendocumentedin-depth.10

TheproposedRegulationlistsanumberofinternationalinstrumentscoveringnumerousmining-relatedenvironmentalandsocialrisks,whichtheCommissionwillusetodevelopguidanceforcompaniesapplyingduediligencerequirements.Whilstthelistisagoodstart,itshouldbeexpandedtoincludebetterprotectionofthosemostvulnerableinthesupplychain.Forexample,theinclusionofILO Convention 169ontherightofIndigenousPeoplestoFree,Prior,andInformedconsent–althoughalreadyincludedinotherinstrumentslistedinAnnexXincludingtheTripartiteDeclarationofPrinciplesconcerningMNEsandSocialPolicy–shouldbeclearlystated,givenitsimportancetotherightsofmining-affectedcommunities.

12. Due Diligence (Arts. 39 and 72)

9. https://www.bloomberg.com/news/articles/2020-12-31/billionaire-friedland-s-spac-readies-funds-for-clean-power-push?srnd=green

10. ECCHR et al. (2019): https://www.ecchr.eu/fileadmin/Fallbeschreibungen/Case_Report_Brumadinho_ECCHR_MISEREOR_20191014_EN.pdf; Business & Human Rights Resource Centre (2019): https://www.business-humanrights.org/en/blog/

brumadinho-dam-collapse-lessons-in-corporate-due-diligence-and-remedy-for-harm-done/; Human Rights Watch (2018): https://www.hrw.org/report/2018/10/04/what-do-we-get-out-it/human-rights-impact-bauxite-mining-guinea; Inclusive Development (2019): https://www.inclusivedevelopment.net/wp-content/uploads/2020/12/CBG_CAO-Request-for-Mediation_FINAL-EN.pdf

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StrongerenvironmentalprotectionsonglobalminingpracticesarealsoneededandminingcompaniesshouldcomplywithrequirementsassetoutintheInitiativeforResponsibleMiningAssurance(IRMA)’sstandardonenvironmentalresponsibility(Principle4),whichistoday’sbestpracticeforresponsiblesourcingandbeyond.Furthermore,withoneineverythreeallegations11relatedtorawmaterialextractionlinkedtowater(pollutionoraccessto),AnnexXshouldaddressthisissuebyincludingadequatestepssuchasIRMA’sWaterManagementrequirements,listedunderthestandard’senvironmentalresponsibilitypractices12.

CompaniesparticipatinginvoluntarysupplychaincertificationschemesthathavebeenrecognisedbytheEuropeanCommission(Art.72)shouldnotbeassumedtobeautomaticallycomplyingwiththelegislationandmustcontinuouslymeettherequirementsassetoutinArt.39oftheregulation,includingensuringsupplychainassessment,transparency,thirdpartyaudits,grievancemechanisms,andconsultationwithaffectedcommunities.Inthecaseofthebiofuelsindustry,forinstance,itwasfoundthatthestandardspresentedbyvoluntaryschemesasabasisfortheirrecognitionwerenotalwaysappliedinpracticeandthattheywerenotultimatelyverifiedbytheauthorities13.

Theinclusionofthearticleonpenalties(Art.76)iswelcome.However,consideringtheexperiencewiththeConflictMineralsandVehicleTypeApprovalRegulations,werecommendaharmonisedframeworkisintroduced.Thisshouldincludeasubstantiatedpenaltymechanismformissing,incompleteorfraudulentassessmentsandreportsonhumanrightsduediligence.Penaltiesshouldincludeshort-termpossibilitiesforeconomicoperatorstoincentivisetheeliminationofcausesforhumanrightviolationsandillegalenvironmentalimpacts,mandatoryrecompense,legalremediesandsuspensionfromthesupplychains.PolicymakersshouldalsosetaframeworkonaccesstoremedyforcommunitiesaffectedbyminingactivitiesinlinewiththeUNGuidingPrinciples.

Thedeepseaisthenewfrontiertargetedbyminingandsome1.3millionkm²ofinternationalwatersarecurrentlyunderdeepseaminingexplorationcontractwiththeInternationalSeabedAuthority(ISA).SeveralEUMemberStatesandcompaniesareholdersorsponsorsofsuchcontracts,including,forexample,PortugalandSpain–seeBlue Economy 2020 report.ThedeepseacontainssomeofthemostbiodiverseandscientificallyimportantecosystemsonEarth,andsustainsalllifeonEarth,andscientistshavepointedtoseriouspotentialrisksofdeepseamining14.TheEU’s Biodiversity Strategy 2030echoesthe2018 Resolution by the EP andstatesthat:‘In international negotiations, the EU should advocate that marine minerals in the international seabed area cannot be exploited before the effects of deep-sea mining on the marine environment, biodiversity and human activities have been sufficiently researched, the risks are understood and the technologies and operational practices are able to demonstrate no serious harm to the environment, in line with the precautionary principle and taking into account the call of the European Parliament.’

11. Business & Human Rights Resource Centre (2021), Transition Minerals Tracker. Link here.

12. https://responsiblemining.net/wp-content/uploads/2018/08/Chapter_4.2_Water_Management.pdf

13. Transport & Environment (September 2, 2016), Sustainable biofuels certification challenged by EU auditors. Link here.

14. Deep-sea mining: the science and potential impacts, link & C. L. Van Dover et al., Biodiversity loss from deep-sea mining, June 2017.

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The inclusion of the article on penalties (Art. 76) is welcome. However, considering the experience with the Conflict Minerals and Vehicle Type Approval Regulations, we recommend a harmonised framework is introduced.

ExpandthelistofrawmaterialscoveredunderduediligencerequirementsinAnnexX(1)toincludecopper,bauxiteandiron.

ExpandthelistofinternationalinstrumentsinAnnexX(3)tobetterprotectvulnerablecommunities.

Putinplacestrongerenvironmentalprotectionsonglobalminingpractices,includingrequirementsassetoutintheInitiativeforResponsibleMiningAssurance(IRMA)’sstandardonenvironmentalresponsibility(Principle4).

OnlyallowvoluntaryindustryschemestoberecognisediftheycanprovetheymeetalltherequirementsestablishedunderArt.39,includingthird-partyverification.

ExtendduediligencerequirementstocovereconomicoperatorsthatplaceportablebatteriesontheEUmarket.

Topreventbatteryproductionfrommigratingtostateswithlowenvironmentalandoccupationalhealthandsafetystandards,batteriesmayonlybeimportedifitcanbeproventhatequivalentEUenvironmentalandoccupationalhealthandsafetystandardshavebeenmet.Theauditorsissuingthesecertificatesshouldnotbeselectedorfinancedbytheactorthatisaudited.

Endoflifebatteriesshouldonlybeexportedtonon-EUcountriesifitcanbeproventhatthesameenvironmentalandoccupationalhealthandsafetystandardsapplytowastetreatmentinthedestinationfacilitiesasintheEU.Forthispurpose,alistofcertifiedtreatmentfacilitiesshouldbedrawnupattheEUCommission.

Ensureaspecificframeworkforpenaltiesissetout,guaranteeingaharmonisedapproachacrossEurope(aspartofArt.76).

EstablishanEUmoratoriumondeepseabedmininguntiltheeffectsonthemarineenvironment,biodiversityandhumanactivitieshavebeensufficientlyresearched,therisksareunderstoodanditcanbedemonstratedthatdeepseabedminingcanbemanagedinawaythatensurestheeffectiveprotectionofthemarineenvironmentandwithoutnetlossofbiodiversity.

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OUR RECOMMENDATIONS

Forquestionsregardingthispositionpaper,pleasecontact:• ECOS:RitaTedescorita.tedesco@ecostandard.org• EEB:PiotrBarczakpiotr.barczak@eeb.org• DUH:PhilippSommersommer@duh.de• T&E:AlexKeynesalex.keynes@transportenvironment.org