In the context of the global push for sustainability and the fight against climate change, the European Union has introduced new battery regulations aimed at promoting green transformation and socially responsible practices in the battery industry through comprehensive supply chain due diligence.
The new Regulation (EU)2023/1542 regulates the entire life cycle of batteries, including production, use and recycling, in order to reduce environmental impact and improve resource efficiency.
Core Requirements for Supply Chain Due Diligence
1. Risk management: battery manufacturers, importers and distributors need to identify and mitigate risks associated with sourcing, processing and trading of raw materials.
2. Policy formulation: develop supply chain policies that are clearly communicated to suppliers and the public and incorporated into contracts and agreements.
3. Monitoring and recording: build an internal management system that documents the supply chain due diligence process for at least five years.
Scope of due diligence
the new regulations pay special attention to key raw materials such as cobalt, natural graphite, lithium and nickel, and require economic operators to conduct due diligence on the supply chain of these raw materials to ensure compliance with social responsibility and environmental standards.
Role of third-party verification
governments, industry associations and stakeholder organizations are encouraged to apply to the European Commission for endorsement of their supply chain due diligence programmes in order to improve the effectiveness and credibility of due diligence.
Impact on Chinese Enterprises
china's battery industry occupies an important position in the global market, and the implementation of new regulations is both a challenge and an opportunity for Chinese companies. Companies need to adapt to new compliance requirements, strengthen supply chain management, and improve environmental and social responsibility performance of products.
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