Adopted in July 2023, the EU Batteries Regulation sets new rules concerning the production, usage, and disposal of batteries. The framework aims to address environmental concerns and bolster the EU’s Green Transition, setting stringent standards for battery design, efficiency, and recyclability, ensuring that batteries are manufactured with the utmost consideration for environmental impact and resource conservation.

In terms of due diligence for downstream companies, the regulation sets heightened expectations for companies to intensify their due diligence endeavours to ensure adherence to ESG standards across the entire supply chain encompassing Cobalt, Lithium, Nickel and Natural Graphite.

In preparation for its entry into force, Drive Sustainability partnered with Levin Sources to get a better understanding of the due diligence requirements and adapt Drive Sustainability’s responsible sourcing strategy accordingly.

The Analysis Report discusses the due diligence requirements of the EU Batteries Regulation, emphasizing alignment with international frameworks, stakeholder engagement, and effective risk assessment and mitigation strategies. It provides recommendations for economic operators to implement policies, management systems, and grievance mechanisms in line with the Regulation.

The report also highlights the importance of transparency, traceability, and documentation in supply chain management to comply with the EU Batteries Regulation effectively.

Believing in the role of Drive Sustainability to catalyse collective action to harmonise requirements and have greater leverage, Drive Sustainability and its members are working towards the adaptation of its tools and approaches to comply with the regulation and maximize its impact on the ground.

For instance, in the framework of the Sustainability Assessment Questionnaire 5.0 (SAQ) revision, we strive to reflect the EUBR due diligence requirements.

In line with its current raw materials strategy, the partnership continues to work on impactful activities to engage with upstream and midstream suppliers to prevent, mitigate and remediate ESG risks in the supply chain.

Disclaimer: This report was prepared from sources and data Levin Sources believes to be reliable at the time of writing, but Levin Sources makes no representation as to its accuracy or completeness. The report is provided for informational purposes and is not to be construed as providing endorsements, representations, or warranties of any kind whatsoever. This report does not provide legal or compliance advice. The authors accept no liability for any consequences whatsoever of pursuing any of the recommendations provided in this report, either singularly or altogether. Opinions and information provided are made as of the date of the report issue and are subject to change without notice.