October 2023
As the energy storage market grows rapidly, the European Union has been updating its regulatory framework to address environmental and safety challenges, particularly in battery usage. With the recent replacement of the 2006/66/EC Directive by the new EU 2023/1542 Regulation, there are significant changes for companies dealing with battery products, including those in stationary battery energy storage systems. Here, we explore the main differences between these two regulations, focusing on compliance dates, impacted categories, and the implications for current and future products.
1. Scope of Coverage: From Directive to Regulation
The 2006/66/EC Directive primarily targeted the collection, recycling, and disposal of batteries. In contrast, EU 2023/1542, enacted on August 17, 2023, as a Regulation, enforces a uniform law across EU member states, eliminating the variance that existed under the Directive’s framework. This direct application across all countries represents a significant shift, as companies must comply with a single, stricter standard, which leaves less flexibility but ensures uniformity in compliance.
2. New Product Categories and Broader Application
Under EU 2023/1542, battery categories have been expanded to include a wider range of battery types, focusing on the full lifecycle impact. For stationary battery energy storage systems, this regulation applies more comprehensively across production, usage, disposal, and environmental impact than the 2006 Directive, which primarily focused on collection and recycling. This shift means that producers, importers, and distributors are now responsible for a broader scope of compliance measures.
- Effective Date for Compliance: August 2025 for most new battery products, including stationary energy storage systems.
- Expanded Categories: Alongside portable, automotive, and industrial batteries covered by the previous Directive, the new regulation specifically addresses “stationary energy storage” batteries, bringing these systems under stricter scrutiny.
3. Circular Economy and Sustainability Focus
EU 2023/1542 introduces specific sustainability measures that go beyond the recycling mandates of the 2006/66/EC Directive. The new regulation requires companies to implement a circular economy model, mandating that battery producers focus on sustainable sourcing, efficient recycling processes, and the responsible sourcing of raw materials.
- Battery Recycling and Collection Targets: Under the new regulation, manufacturers must meet progressively increasing collection and recycling rates. For stationary energy storage batteries, targets for material recovery (such as lithium, cobalt, and nickel) are set for 2025, with further increases mandated by 2030.
- Carbon Footprint Declarations: This new requirement will take effect in July 2027, mandating all manufacturers, including those producing stationary energy storage systems, to disclose the carbon footprint of their products. This disclosure supports the EU’s climate goals by emphasizing energy-efficient production.
4. Enhanced Safety and Performance Standards
One of the critical aspects of EU 2023/1542 is its emphasis on safety and performance standards, which will have a particular impact on high-capacity battery systems like those used in stationary storage. Unlike the older Directive, which did not specify performance metrics, the new regulation includes requirements for battery durability, capacity retention, and safety testing.
- Timeline: These standards will begin to take effect in 2026, with full compliance expected by 2028 for all new stationary energy storage systems sold within the EU market.
- Article 12
- Safety of stationary battery energy storage systems
- 1. Stationary battery energy storage systems placed on the market or put into service shall be safe during their normal operation and use.
- 2. By 18 August 2024, the technical documentation referred to in Annex VIII shall:
(a) | demonstrate that the stationary battery energy storage systems are compliant with paragraph 1 and include evidence that they have been successfully tested for the safety parameters set out in Annex V, for which state-of-the-art testing methodologies shall be used. The safety parameters shall only apply in so far as a corresponding hazard exists for the stationary battery energy storage system in question when it is used under the conditions envisaged by the manufacturer; |
(b) | include an assessment of possible safety hazards of the stationary battery energy storage system that are not addressed in Annex V; |
(c) | include evidence that the hazards referred to in point (b) have been successfully mitigated and tested; state-of-the-art testing methodologies shall be used for such testing; |
(d) | include mitigation instructions in case the identified hazards could occur, for example a fire or explosion. |
- The technical documentation shall be reviewed if a battery is prepared for re-use, prepared for repurposing, remanufactured or repurposed.
- 3. The Commission is empowered to adopt delegated acts in accordance with Article 89 to amend the safety parameters set out in Annex V in view of technical and scientific progress.
5. Digital Product Passports for Battery Traceability
To improve traceability and responsible end-of-life handling, the new regulation introduces Digital Product Passports for each battery. These passports will record essential information on battery composition, production origin, and recycling details, enhancing transparency across the supply chain and enabling more efficient recycling processes.
- Compliance Timeline: Digital product passports will become mandatory by 2026 for high-capacity industrial and stationary energy storage batteries.
6. Implications for Existing Stationary Battery Energy Storage Systems
If you currently manufacture, import, or sell stationary energy storage systems in the EU, the new regulation requires several adjustments. Unlike the 2006 Directive, where compliance was often a matter of basic recycling participation, the new regulation holds each part of the supply chain accountable for eco-friendly production, responsible end-of-life disposal, and detailed reporting.
7. How We Can Help
Navigating these regulatory changes can be challenging, particularly when integrating these requirements into your existing products and operations. Our consultancy specializes in regulatory compliance, product assessment, and sustainable design integration for energy storage solutions. With our expertise, we can guide your business through the updated compliance framework, ensuring that your stationary battery energy storage systems align with EU 2023/1542 requirements efficiently and cost-effectively.
Reach out to us for a personalized compliance assessment to secure your market position and lead in sustainable, compliant energy storage solutions.
As the EU raises the standards for battery production and disposal, staying informed and prepared is more crucial than ever. Proactively adapting to these new standards will ensure your business’s smooth transition and long-term success in the EU market