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Published - 26 August 2025 - 5 min read

EU Battery Regulations and the Future of Battery Passports

The European Union’s new Battery Regulation (EU 2023/1542) marks a turning point for the global battery sector. Designed to promote sustainability, circularity and transparency, these rules are reshaping how batteries are produced, used and recycled.

At the centre of this transformation lies the Battery Passport, a digital tool that enables traceability across the entire value chain. From environmental awareness to consumer empowerment, the implications are vast and direct to a new era for the energy transition.

A Landmark Shift from Directive to Regulation

The previous framework, Directive 2006/66/EC, left implementation to member states, resulting in uneven enforcement. Regulation (EU 2023/1542), which became directly applicable on 18 February 2024, replaces the directive and comes into full effect by 18 August 2025, when the directive is completely repealed.

This Regulation applies to a wide variety of battery types, from portable units (under 5 kg) to EV and industrial batteries. Economic operators including manufacturers, importers, and distributors must now meet uniform requirements across all EU markets.

Staged Compliance Timeline

The Regulation outlines a phased roll-out of obligations aimed at strengthening sustainability across the lifecycle:

  • February 2025: Mandatory carbon footprint declarations (site and batch-specific, third-party verified and publicly accessible).
  • Late 2025: Minimum recycling efficiency thresholds set at 65% for lithium-based batteries.
  • December 2027: Recovery rate targets—50% lithium, 90% nickel, cobalt, and copper—from waste batteries.
  • February 2027: Digital Battery Passports become mandatory for industrial batteries >2 kWh and EV batteries.

The Regulation also introduces obligations for supply chain due diligence (by August 2025) and updated durability and safety requirements for stationary batteries starting August 2024.

The Environmental Impact of EU Battery Regulations

The EU Battery Regulations aim to address one of the most pressing challenges: the environmental impact of the battery industry. Batteries are critical for renewable energy storage and electric mobility, but their production is resource-intensive. Mining activities for lithium, cobalt and nickel often carry high carbon emissions, water consumption and biodiversity risks.

By mandating the Battery Passport, regulators ensure that the environmental footprint of each battery is transparently recorded. Data on carbon intensity, sourcing practices, and recycling rates help manufacturers and policymakers reduce negative impacts.

This also aligns with the EU’s broader climate objectives, including the Green Deal and Fit for 55 package, by fostering accountability and measurable progress towards sustainability.

Digital Battery Passports: New Transparency in Practice

Article 77 of the Regulation specifies that battery manufacturers (or importers outside the EU) are responsible for issuing the battery passport. These passports must include a clear breakdown of battery metrics across four data categories—accessible via QR codes or machine-readable formats as defined in Annex XIII.

The passport framework aligns with the broader EU Digital Product Passport (DPP) initiative, reinforcing seamless traceability and circularity across products.

Compliance Challenges for Industry

While the regulations establish an ambitious framework, compliance will not be without obstacles. Many companies face hurdles such as:

  • Data collection complexity: Gathering accurate lifecycle data from suppliers spread across continents.
  • Technological feasibility: Ensuring interoperability of digital systems to host and share passport data securely.
  • Cost pressures: Smaller manufacturers may struggle with the financial burden of implementing new reporting standards.
  • Supply chain readiness: Limited capacity in some regions to provide verifiable environmental and social metrics.

From the BASE EU Project’s perspective, overcoming these challenges requires close collaboration between technology providers, regulators, and industry stakeholders. Support mechanisms and phased implementation will be crucial in ensuring businesses adapt without compromising their competitiveness.

Technological Solutions and Renewable Energy Integration

To meet the requirements, a new wave of technological solutions is being developed. Blockchain-enabled traceability, digital twin technology, and advanced data platforms are key tools for recording, storing, and sharing battery information in a secure and tamper-proof manner.

Equally important is the integration of renewable energy within the regulatory framework. Batteries play a vital role in stabilising renewable energy systems by storing adequate solar and wind power for later use.

The regulations require transparent reporting on how batteries contribute to renewable energy integration, ensuring they are not just powering mobility but also accelerating the energy transition.

For example, smart battery management systems are being deployed to optimise charging cycles, reduce waste and extend product lifespan. These innovations not only support compliance but also strengthen the long-term sustainability of Europe’s energy ecosystem.

Consumer Impact and Market Transformation

The regulations are not only shaping industry practices but also transforming the experience of consumers and end-users. With access to the Battery Passport, consumers will be able to make more informed decisions when purchasing electric vehicles, household storage systems or portable devices. They can evaluate a product’s sustainability profile, its recyclability, and even its expected performance over time.

This level of transparency enhances trust, encourages sustainable consumption, and supports a circular economy where products are reused, repaired, and recycled. For end-users, it also means better product warranties, safer usage and potential cost savings from longer-lasting batteries.

BASE Project: Building the Digital Framework

The BASE Project (Battery Passport for Resilient Supply Chain and Implementation of Circular Economy) is directly addressing these regulatory needs by developing the digital systems required for compliance. Coordinated  by Fraunhofer, the BASE Project constructs a Digital Battery Passport (DBP) platform that uses distributed ledger technology for:

  • Verifying data authenticity
  • Avoiding duplication
  • Ensuring privacy-by-design
  • Tracking state of health, supply chain, material composition, and recycling data.

With four pilot scenarios including reuse and recycling logistics, BASE is delivering the functional infrastructure to operationalise the EU’s regulatory goals.

Industry Readiness and Immediate Compliance Needs

The Regulation is already in force, and non-compliance risks include fines or market exclusion.

Companies placing batteries on the EU market must meet obligations under Extended Producer Responsibility (EPR), CE marking, documentation, and carbon footprint disclosure. Portable batteries must adhere to lead content limits (less than 0.01%) starting August 2024.

Supply chains must be audited and data sufficiently detailed to meet upcoming thresholds. This has sparked growing demand for compliance services, notified body certifications, and digital systems such as those being developed by BASE.

Closing Thoughts

The EU Battery Regulation marks a pivotal shift towards a circular, transparent, and sustainable battery economy. From carbon footprint reporting to mandatory passports, the Regulation demands rigorous compliance.

The BASE Project plays an essential role in transforming regulatory intent into practical, scalable solutions. As the 2027 implementation deadline approaches, deploying DBPs will be central to regulatory conformity, supply chain transparency, and the circular economy of tomorrow.

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