Edit by Raymomd 2023/08/23
The European Union's (EU) much-anticipated battery regulations will formally take effect today, following their official announcement 20 days ago. These new guidelines introduce significant changes poised to impact battery producers across the globe, with companies in China and Taiwan being at the forefront of these challenges.
Key Highlights of the New Regulations:
Beginning in 2027, any power batteries destined for European markets will mandatorily require a "Battery Passport." This document will provide in-depth details about the battery, encompassing its manufacturer, material composition, carbon footprint, and intricate supply chain information.
The path to this legislation has spanned three years, witnessing Asian battery companies transition from initial apprehensions to active participation, and ultimately, acceptance of the impending paradigm shift.
Upon the new battery law's enforcement, Asian battery producers exporting to Europe will confront three primary challenges:
Carbon Footprint Declarations: Commencing from July 2024, a significant majority of batteries exported to Europe must be accompanied by a carbon footprint statement and label. This entails companies to meticulously collect, compute, and disclose carbon emissions data throughout the entire life cycle of the battery, from raw material extraction, through production, and up to recycling and reuse. The current landscape shows many Chinese battery companies grappling with this, mainly due to a lack of comprehensive data and established tools to measure these footprints accurately.
Recycling and Reuse of Battery Materials: The EU's new directives mandate specific quotas for incorporating recycled materials in power batteries. However, China currently lacks a robust mechanism to validate the use of recycled raw materials in batteries. This absence of a verification system might pose significant challenges for future exports.
Recycling and Reuse of Battery Materials: Starting February 18, 2027, a majority of power batteries entering European markets will need a detailed "Battery Passport." This document will necessitate approximately 90 mandatory data attributes, in addition to voluntary recommendations. The specifics will encompass details like battery and manufacturer information, compliance and certification metrics, carbon footprint, supply chain due diligence, material composition, and performance metrics, among others.
China's Stance and Response:
Being a dominant player in power battery exports to Europe, China has proactively initiated its rendition of the "Battery Passport" to align with these new European directives. This strategic move is tailored to ensure seamless battery trade relations between China and the EU. It's pivotal to note China's overwhelming presence in the battery production landscape, holding a staggering 77% of the global market share. Furthermore, China's power battery market share in Europe has seen a meteoric rise-from 14.9% in 2020 to an impressive 34% in 2023.
The Broader Implication:
The EU's transition towards more stringent battery regulations is a testament to its unwavering commitment to sustainability, responsible sourcing, and championing a circular economy in the battery sector. This move is anticipated to set a global precedent, prompting other nations to follow suit.
For further inquiries, please reach out to SSBTi.org or Nanozeo.com;
Email: raymond@ssbti.org
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