The European Parliament has passed the proposal for green batteries, which puts world-leading standards on the environmental impact of their entire lifecycle. The rules apply to batteries used in both vehicles as lighter means of transport, like e-scooters.

The new law means that battery producers will be obliged to report on the entire carbon footprint of the battery, from mining to manufacturing to recycling, resulting in a label. This applies to battery packs above 2 kWh. A digital passport, clarifying composition, expected lifetime, and the possibilities for repair and reuse of the battery are also part of the agreement, which was adopted with an overwhelming majority.

‘Global benchmark’

Furthermore, Europe puts forward ambitious thresholds for collecting used batteries, from 45 percent this year to 73 percent by the decade’s end. Minimum goals for recycling cobalt, nickel, and lithium – and reusing those metals in new battery packs – are also part of the framework. After gradually reaching them, the goalposts will be further moved over thirteen years.

“Our overall aim is to build a stronger EU recycling industry, particularly for lithium, and a competitive industrial sector as a whole, which is crucial in the coming decades for our continent’s energy transition and strategic autonomy,” commented the Italian rapporteur Achille Variati. “These measures could become a benchmark for the global battery market.”

The possibility of greenwashing?

Green lobby group Transport & Environment (T&E) welcomes the approval but points to the pitfall of greenwashing if the still-to-be-agreed-upon rulings for the law remain too soft.

The body refers to the trade in energy certificates, which compensates for carbon emissions but fails to improve local energy production, which is often CO2 intensive, like in Germany or Poland. T&E has already published a report that using these Guarantees of Origin “artificially reduces the carbon footprint.”

Nonetheless, this is the first time that the European Union has ratified circular legislation that covers the entire lifecycle of a product. It’s part of the Circular Economy Action plan that the European Commission kickstarted in 2020, aiming at longer-lasting products and higher standards for recycling and reuse. It also entails a “right to repair” for customers.

Good news for Belgium

Belgium is at the forefront of the battery recycling industry thanks to companies like Umicore, a specialist in material recycling. At the Green Impact Study presentation in December last year, Minister of Mobility Georges Gilkinet (Ecolo) said that Umicore is shaping up to be “the mine of the future”.

Umicore has spun off its EV battery recycling activities in a separate branch, Rechargeable Battery Materials (RBM), for which it readied an investment of 5 billion euros. The approved ruling by the European Union is a windfall for the materials handler from Hoboken, shifting from catalysts for internal combustion engines to cathode materials from recycled batteries. These are manufactured in a factory in Poland (for the VW Group and Stellantis), while a second plant in Canada is under construction.