As the world shifts toward cleaner energy, demand for batteries has shot up, driven by a rise in electric vehicles, portable electronics, and energy storage systems. This raises concerns about battery sustainability—the ability of batteries to remain green throughout their life cycle. 

The current global recycling rate for lithium-ion batteries stands at a mere 5%. It goes without saying that regulatory bodies have a crucial role to play in boosting this figure. To give an example,

The European Union’s Batteries Regulation 2023 has underscored the necessity of sustainability from production to disposal, setting a new global standard.

Similarly, the US Environmental Protection Agency (EPA), China’s Ministry of Industry and Information Technology (MIIT), the International Electrotechnical Commission (IEC), etc., are working on establishing specific regulations and criteria, focusing on mitigating environmental impacts while promoting greener battery technologies. 

In this article, we look at how regulatory changes shape the future of battery sustainability. 

New Regulatory Frameworks Driving Battery Sustainability 

Several regulatory frameworks have been introduced recently with an exclusive focus on battery recycling. Let’s take a look at these in detail:

1. The EU: New Batteries Regulation 

The new  Batteries Regulation of the EU aims to reduce the carbon footprint of batteries, minimize the use of harmful substances, and increase recycling within Europe. 

According to the current EU battery regulations, by 2025, the goal is to achieve a 65% recycling efficiency for lithium-based batteries, with higher recovery rates specifically for cobalt, nickel, and copper at 90%.

It is the first European law to address the entire life cycle of a product—from sourcing to recycling. Undoubtedly, this law will promote a circular economy, ensure a steady supply of raw materials, and enhance the EU’s strategic autonomy. 

2.  Washington, D.C.: Extended Producer Responsibility (EPR) Law

Moving from Europe to the U.S., the Extended Producer Responsibility (EPR) Law in Washington, D.C. includes several key provisions to manage battery waste effectively. 

• Manufacturers are responsible for the collection, recycling, and proper disposal of used batteries.
• Producers must establish and maintain accessible collection programs for consumers to return used batteries.
• The law sets specific recycling targets that producers must meet to ensure a significant percentage of batteries are recycled.

3. California’s Lithium-Ion Battery Recycling Regulations

California has also established several regulatory frameworks to promote the recycling of lithium-ion batteries. These aim to ensure the safe and effective management of batteries at their end-of-life. For example:

• The lithium-ion battery recycling program mandates covered entities to establish stewardship for batteries, achieve specified collection and recycling rates, and submit annual reports on battery sales and recycling efforts.
• California Lithium-Ion Car Battery Recycling Advisory Group is formed to provide policy recommendations for increasing recycling rates and establishing efficient recovery pathways for end-of-life lithium-ion batteries.
• California’s EPR framework requires producers to take responsibility for the entire lifecycle of their products.

4.  Due Diligence Guidance by OECD

OECD Due Diligence Guidance for Responsible Supply Chains provides a clear pathway for companies to identify and mitigate risks associated with environmental and governance issues in their supply chains—particularly concerning critical minerals used in battery production. 

This framework underlines ethical sourcing and regulatory compliance.

5.  China’s Extended Producer Responsibility (EPR) Law for Waste Electrical and Electronic Equipment (WEEE)

China’s EPR policy places a clear responsibility on the producers for the proper dismantling and recycling of WEEE, inclusive of batteries. 

The EPR law is part of a broader set of regulations, including the Regulation on the Management of Collection and Disposal of Waste Electrical and Electronic Products, which came into effect in 2011. This outlined specific responsibilities for producers regarding product design, information disclosure, and waste management.

Based on EPR, the Target Responsibility System (TRS), which was introduced in 2021, encourages producers to establish their own or collaborative recycling systems to meet specified recycling targets.

6.  Battery Waste Management Rules in India for Battery Production

India’s Battery Waste Management Rules, 2022, lays responsibility on the manufacturers of batteries for collection, recycling, and disposal of used batteries. The primary aim is to reduce hazardous waste and promote environmentally friendly lifecycle management. 

Key conditions include mandates for minimum recovery targets, the establishment of a centralized online portal for EPR compliance, and penalties for non-fulfillment of EPR obligations. 

7.   Japan’s Battery Recycling Law

Japan’s battery recycling framework is primarily guided by the Law for Promotion of Effective Utilization of Resources, which mandates that manufacturers take responsibility for collecting and recycling used small rechargeable batteries. 

The Japan Portable Rechargeable Battery Recycling Center (JBRC), established under this law, strives to promote public awareness and facilitate collection. Additionally, ambitious recycling targets have been set to recover valuable materials from used batteries. 

8. Battery Passport Initiative by the Global Battery Alliance (GBA)

Battery Passport initiative by the Global Battery Alliance (GBA) seeks to increase transparency and sustainability across the global battery value chain. 

The Passport is a digital representation of a physical battery, containing comprehensive information about its sustainability and lifecycle. 

Key Features of New Battery Sustainability Regulations: Design, Sourcing, and Recycling 

So, what are the main aspects of these regulations? 

1. Designing for Sustainability

Manufacturers are likely to make design changes to make batteries in portable devices easily removable and replaceable by consumers themselves, which will become a legal requirement beginning in 2027.

In this regard, companies like Apple and Volvo have already been working to adapt their products to these new demands. 

For example, Volvo’s EX90 electric car will be the first to comply with the contents of the battery passport. Apple is developing a new casing for batteries to make it easier to remove and recycle them​.

2. Supply Chain Due Diligence and Ethical sourcing

Focusing on ethical sourcing, brought about by regulatory changes, and reducing environmental and social risks linked to raw materials such as lithium, cobalt, and nickel are of utmost importance. 

3. Circular Economy and Battery Recycling

The establishment of a circular economy for batteries is one of the main goals of the new regulations. The EU has set ambitious targets for recycling efficiency and recovery of critical raw materials, including lithium and cobalt, by 2025. 

To realize these ambitions, Mercedes-Benz teamed up with Primobius to build Germany’s first recycling plant to return valuable materials to lithium-ion batteries.

Battery Sustainability and Recycling: Major Challenges for the Industry

Adapting to the new battery sustainability regulations presents several challenges for manufacturers, including: 

1. Increased Costs and Product Redesign

Manufacturers are facing one of the biggest challenges, i.e., the cost associated with redesigning products to meet these new levels of sustainability. This requires overhauling production lines and investing in research and development, which can increase costs for smaller manufacturers by 20% to 30%. 

2. Building Recycling Infrastructure

Another challenge is the need to establish a full-scale recycling infrastructure. According to the new regulations, batteries must be recycled with high efficiency, including specified rates of material recovery, the main ones being lithium, cobalt, and nickel. 

Most companies currently lack the infrastructure to meet such requirements.

3. Ensuring Ethical Sourcing of Minerals

Ethical sourcing of battery raw materials is quite challenging due to the need for rigorous due diligence to prevent harm to the environment and people. 

This complicates procurement, slows production, and increases expenses in most cases. 

The Future of Battery Sustainability

Despite the challenges, there are numerous opportunities for businesses:

• Innovative Recycling Technologies: Development of advanced methods like direct cathode recovery and bioleaching to enhance recycling efficiency.
• Design for Recycling: Future batteries will incorporate modularity and disassembly features to facilitate easier recycling.
• Expanded Collection Networks: Increased consumer participation through incentives and partnerships to improve battery collection rates.
• Policy Development: Implementation of ambitious recycling targets and mandates for recycled content in new batteries.
• Circular Economy Models: Adoption of business models focused on reuse and remanufacturing to reduce reliance on pristine materials.
• Collaboration Across Sectors: Engagement among manufacturers, recyclers, and academia to foster research and address challenges in battery recycling.

Final Note

Adherence to global standards can ensure a level playing field and encourage companies worldwide to adopt sustainable practices. As these regulations gain momentum, they are not just shaping the future of battery sustainability but also redefining energy storage and mobility as we know it. 

The future of clean energy is dependent on these efforts, creating a greener, more resilient world for generations to come.