EU Battery Regulation 2023/1542 — Cobalt Requirements

The EU Battery Regulation (Regulation 2023/1542) is the most significant piece of legislation affecting cobalt supply chains in Europe. It replaces the 2006 Battery Directive and introduces mandatory due diligence, carbon footprint declarations, and minimum recycled content thresholds for cobalt in batteries placed on the EU market.

Scope and Applicability

The regulation applies to all batteries placed on the EU market regardless of where they are manufactured. This includes portable batteries, light means of transport (LMT) batteries, electric vehicle (EV) batteries, and industrial batteries above 2 kWh. Cobalt is explicitly listed as a regulated substance due to its critical raw material status and human rights risk profile in the DRC.

Due Diligence Obligations (Article 48–52)

Economic operators placing batteries on the EU market must implement a due diligence policy for cobalt and other regulated substances (lithium, nickel, natural graphite). The policy must be based on the OECD Due Diligence Guidance and cover:

• Supply chain mapping to the smelter/refiner level
• Risk assessment against OECD Annex II red flags
• Risk mitigation strategies and supplier engagement
• Third-party audits of smelters and refiners
• Annual public reporting on due diligence activities

Carbon Footprint Declaration (Article 7)

From 18 February 2025, EV batteries and rechargeable industrial batteries above 2 kWh must be accompanied by a carbon footprint declaration. The declaration must cover the full lifecycle of the battery including cobalt mining, processing, cell manufacturing, and end-of-life. From 2027, batteries must meet maximum carbon footprint thresholds to be placed on the EU market.

Recycled Content Thresholds (Article 8)

From 2031, EV batteries must contain a minimum of 6% recycled cobalt. From 2036, this rises to 15% recycled cobalt. Manufacturers must declare the percentage of recycled cobalt content from 2027.

Battery Passport (Article 77)

From 2027, EV batteries must be accompanied by a digital battery passport accessible via a QR code. The passport must include cobalt content, origin, carbon footprint, and supply chain due diligence information. This creates an unprecedented traceability requirement for cobalt from mine to battery cell.

Enforcement and Penalties

Member states are responsible for enforcement. Penalties for non-compliance include market withdrawal, fines, and prohibition from placing batteries on the EU market. The regulation is directly applicable in all 27 EU member states without transposition.