Scope of this Chapter
This Chapter does not apply to economic operators that had a net turnover of less than EUR 40 million in the financial year preceding the last financial year, and that are not part of a group, consisting of parent and subsidiary undertakings, which, on a consolidated basis, exceeds the limit of EUR 40 million.
This Chapter does not apply to economic operators in relation to the placing on the market or putting into service of batteries that have been subject to preparation for re-use, preparation for repurposing, repurposing or remanufacturing, if such batteries had already been placed on the market or put into service before undergoing such operations.
This Chapter applies without prejudice to the provisions laid down in Union law on due diligence obligations in relation to minerals and metals originating from conflict-affected and high-risk areas.
Battery due diligence policies
1. From 18 August 2025, economic operators that place batteries on the market or put them into service shall fulfil the due diligence obligations laid down in paragraphs 2 and 3 of this Article, and in Articles 49, 50 and 52 and shall, to that end, set up and implement battery due diligence policies.
2. Economic operators referred to in paragraph 1 of this Article shall have their battery due diligence policies verified by a notified body in accordance with Article 51 (‘third-party verification’) and periodically audited by that notified body to make sure that the battery due diligence policies are maintained and applied in accordance with Articles 49, 50 and 52. The notified body shall provide the audited economic operator with an audit report.
3. Economic operators referred to in paragraph 1 of this Article shall keep documentation demonstrating their fulfilment of the obligations laid down in Articles 49, 50 and 52, including the verification report and approval decision referred to in Article 51 and the audit reports referred to in paragraph 2 of this Article, for 10 years after the last battery manufactured under the relevant battery due diligence policy has been placed on the market.
4. Without prejudice to the individual responsibility of economic operators for their battery due diligence policies, economic operators referred to in paragraph 1 of this Article may, for the purposes of compliance with the requirements laid down in Articles 48, 49, 50 and 52, collaborate with other actors, including through due diligence schemes recognised under this Regulation.
5. By 18 February 2025, the Commission shall publish guidelines as regards the application of the due diligence requirements laid down in Articles 49 and 50, with regard to the risks referred to in point 2 of Annex X, and in line, in particular, with the international instruments referred to in points 3 and 4 of Annex X.
6. Member States may, in order to provide information and support to economic operators in fulfilling the due diligence obligations under this Regulation, set up and operate, individually or jointly, dedicated websites, platforms or portals.
7. The Commission may complement the Member State support measures referred to in paragraph 6, by building on existing Union action to support due diligence in the Union and in third countries, and may devise new measures to help economic operators fulfil their obligations under this Regulation.
8. The Commission shall regularly assess the need to update the list of raw materials and risk categories set out in Annex X.
The Commission is empowered to adopt delegated acts in accordance with Article 89 to:
(a)
amend the list of raw materials in point 1 of Annex X and of risk categories in point 2 of Annex X, in view of scientific and technological progress in battery manufacturing and chemistries and amendments to Regulation (EU) 2017/821;
(b)
amend the list of international instruments in point 3 of Annex X, in accordance with developments within the relevant international fora concerning standards related to due diligence policies and to protection of the environment and of social rights;
(c)
amend the obligations on the economic operators referred to in paragraph 1 of this Article which are laid down in Articles 49 and 50 in view of amendments to Regulation (EU) 2017/821, and amend the list of internationally recognised due diligence instruments set out in point 4 of Annex X.
Economic operator’s management system
1. Each economic operator referred to in Article 48(1) shall:
(a)
adopt, and clearly communicate to suppliers and the public, a company battery due diligence policy, concerning raw materials listed in point 1 of Annex X, and associated social and environmental risk categories listed in point 2 of Annex X;
(b)
incorporate in its battery due diligence policy standards that are consistent with the standards set out in the internationally recognised due diligence instruments listed in point 4 of Annex X;
(c)
structure its internal management system to support its battery due diligence policy by assigning responsibility to its top management level to oversee its battery due diligence policy as well as maintain records of that system for a minimum of 10 years;
(d)
establish and operate a system of controls and transparency regarding the supply chain, including a chain of custody or traceability system, identifying upstream actors in the supply chain;
(e)
incorporate its battery due diligence policy, including risk management measures, into contracts and agreements with suppliers; and
(f)
establish a grievance mechanism, including an early-warning risk-awareness system and a remediation mechanism, or provide for such mechanisms through collaborative agreements with other economic operators or organisations or by facilitating recourse to an external expert or body, such as an ombudsman; such mechanisms shall be based on the UN Guiding Principles on Business and Human Rights.
2. The system referred to in paragraph 1, point (d), shall be supported by documentation that provides at least the following information:
(a)
a description of the raw material, including its trade name and type;
(b)
the name and address of the supplier that supplied the raw material present in the batteries to the economic operator that places the batteries containing the raw material in question on the market;
(c)
the country of origin of the raw material and the market transactions from the raw material’s extraction to the immediate supplier to the economic operator that places the battery on the market;
(d)
the quantities of the raw material present in the battery placed on the market, expressed in percentage or weight;
(e)
third-party verification reports issued by a notified body and concerning the suppliers as referred to in Article 50(3);
(f)
if the reports referred to in point (e) are not available and where the raw material originates from a conflict-affected and high-risk area, additional information in accordance with the specific recommendations for upstream economic operators, as set out in the OECD Due diligence guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, where relevant, such as the mine of origin, locations where the raw material is consolidated, traded and processed, and taxes, fees and royalties are paid.
Third party verification reports referred to in point (e) of the first subparagraph shall be made available by suppliers as referred to in Article 50(3) to the downstream operators of the supply chain.
Risk management obligations
1. The economic operator referred to in Article 48(1) shall:
(a)
identify and assess the risk of adverse impacts in its supply chain, associated with the risk categories listed in point 2 of Annex X as part of its management plan, including on the basis of the information provided pursuant to Article 49 and any other relevant information that is either publicly available or provided by stakeholders, by reference to its battery due diligence policy;
(b)
design and implement a strategy to respond to the identified risks to prevent, mitigate and otherwise address adverse impacts by:
(i)
reporting findings of its risk assessment to its top management level assigned in accordance with Article 49(1), point (c);
(ii)
adopting risk management measures that are consistent with the internationally recognised due diligence instruments listed in point 4 of Annex X, considering its ability to influence, and where necessary take steps to exert pressure on, suppliers, including their subsidiaries and subcontractors, who can most effectively prevent or mitigate the identified risk;
(iii)
designing and implementing a risk management plan, monitoring and tracking performance of risk mitigation efforts, reporting back to its top management level assigned in accordance with Article 49(1), point (c), and considering suspending or discontinuing engagement with a supplier or its subsidiary or subcontractor after failed attempts at mitigation, based on relevant contracts and agreements referred to in Article 49(1), point (e);
(iv)
undertaking additional fact and risk assessments for risks requiring mitigation, or after a change of circumstances.
2. If the economic operator referred to in Article 48(1) pursues risk mitigation efforts while continuing trade or temporarily suspending trade, it shall consult with suppliers and with the stakeholders concerned, including local and national government authorities, international or civil society organisations and affected third parties such as local communities, before establishing a strategy for measurable risk mitigation in the risk management plan referred to in paragraph 1, point (b)(iii), of this Article.
3. The economic operator referred to in Article 48(1) shall identify and assess the probability of adverse impacts in the risk categories listed in point 2 of Annex X, in its supply chain. That economic operator shall identify and assess the risks in its supply chain as part of its own risk management systems. The economic operator shall carry out third party verifications of its own due diligence chains via a notified body in accordance with Article 51. The economic operator may use third-party verification reports issued pursuant to Article 51(2) by such a notified body concerning battery due diligence policies implemented by suppliers in that chain in accordance with this Chapter. The economic operator may also use those third-party verification reports to assess, as appropriate, the due diligence practices of those suppliers.
4. The economic operator referred to in Article 48(1) shall report the findings of the risk assessment referred to in paragraph 3 of this Article to its top management level to which responsibility has been assigned in accordance with Article 49(1), point (c), and shall implement the strategy referred to in paragraph 1, point (b), of this Article.
Third-party verification of battery due diligence policies
1. The notified body shall carry out third-party verifications. Such third-party verifications shall:
(a)
cover all activities, processes and systems used by economic operators to fulfil their due diligence obligations in accordance with Articles 49, 50 and 52;
(b)
have as their objective the determination of conformity of the due diligence practices of economic operators placing batteries on the market in accordance with Articles 49, 50 and 52;
(c)
where relevant, include checks on undertakings and gather information from stakeholders;
(d)
identify, for the economic operators that place batteries on the market, areas of potential improvement in relation to their due diligence practices;
(e)
respect the audit principles of independence, competence and accountability, as set out in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
2. The notified body shall issue a verification report that records the activities undertaken in accordance with paragraph 1 of this Article and their outcomes. Where the battery due diligence policies referred to in Article 48 fulfil the obligations laid down in Articles 49, 50 and 52, the notified body shall issue an approval decision.
Disclosure of information on battery due diligence policies
1. The economic operator referred to in Article 48(1) shall make available upon request to Member States’ market surveillance authorities or national authorities the verification report and approval decision issued in accordance with Article 51, the audit reports referred to in Article 48(2) and available evidence of compliance with a due diligence scheme recognised by the Commission in accordance with Article 53.
2. The economic operator referred to in Article 48(1) shall make available to its immediate downstream purchasers all relevant information gained and maintained pursuant to its battery due diligence policy, with due regard for business confidentiality and other competitive concerns.
3. The economic operator referred to in Article 48(1) shall on an annual basis review and make publicly available, including on the internet, a report on its battery due diligence policy. That report shall contain, in a manner that is easily comprehensible for end-users and clearly identifies the batteries concerned, the data and information on steps taken by that economic operator to comply with the requirements laid down in Articles 49 and 50, including findings of significant adverse impacts in the risk categories listed in point 2 of Annex X, and how they have been addressed, as well as a summary report of the third-party verifications carried out in accordance with Article 51, including the name of the notified body, with due regard for business confidentiality and other competitive concerns. That report shall also cover, where relevant, access to information, public participation in decision-making and access to justice in environmental matters in relation to the sourcing, processing and trading of the raw materials present in batteries.
4. Where the economic operator referred to in Article 48(1) can demonstrate that the raw materials listed in point 1 of Annex X, that are present in the battery are derived from recycled sources, it shall publicly disclose its conclusions in reasonable detail, with due regard for business confidentiality and other competitive concerns.
Recognition of due diligence schemes
1. Governments, industry associations and groupings of interested organisations that have developed and oversee due diligence schemes (‘scheme owners’) may apply to have their due diligence schemes recognised by the Commission. The Commission is empowered to adopt implementing acts establishing the information requirements that the application for recognition is to contain. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 90(3).
2. Where, on the basis of the evidence and information provided pursuant to the paragraph 1 of this Article, the Commission determines that the due diligence scheme referred to in that paragraph, enables economic operators to meet the requirements laid down in Articles 48, 49, 50 and 52, it shall adopt an implementing act granting that scheme a recognition of equivalence with the requirements laid down in this Regulation. The OECD Centre for Responsible Business Conduct shall be consulted prior to the adoption of that implementing act. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 90(3).
When making a determination on the recognition of a due diligence scheme, the Commission shall take into account the diverse industry practices covered by that scheme and shall have regard to the risk-based approach and method used by that scheme to identify risks.
3. The Commission shall adopt delegated acts in accordance with Article 89 setting out the criteria and the methodology according to which the Commission is to determine, in accordance with paragraph 2 of this Article, whether due diligence schemes enable economic operators to meet the requirements laid down in Articles 48, 49, 50 and 52. The Commission shall also, as appropriate, periodically verify that recognised due diligence schemes continue to fulfil the criteria that led to a decision to grant recognition of equivalence pursuant to paragraph 2 of this Article.
4. The owner of a due diligence scheme for which the recognition of equivalence was granted in accordance with paragraph 2 shall inform the Commission without delay of any changes or updates made to that scheme. The Commission shall assess whether such changes or updates affect the recognition of equivalence of that scheme and take appropriate action.
5. If there is evidence of repeated or significant cases where economic operators implementing a scheme recognised in accordance with paragraph 2 of this Article have failed to meet the requirements laid down in Articles 48, 49, 50 and 52, the Commission shall examine, in consultation with the owner of the recognised due diligence scheme, whether those cases indicate deficiencies in the scheme.
6. Where the Commission identifies a failure to comply with the requirements laid down in Articles 48, 49, 50 and 52 or deficiencies in a recognised due diligence scheme, it may grant the scheme owner an appropriate period to take remedial action.
7. Where the scheme owner fails or refuses to take the necessary remedial action, and where the Commission has determined that the failure or deficiencies referred to in paragraph 6 of this Article compromise the ability of the economic operator referred to in Article 48(1) implementing the scheme to comply with the requirements laid down in Articles 48, 49, 50 and 52 or where repeated or significant cases of non-compliance by economic operators implementing a scheme are due to deficiencies in the scheme, the Commission shall adopt an implementing act withdrawing the recognition of equivalence of the scheme. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 90(3).
8. The Commission shall establish and keep up-to-date a register of recognised due diligence schemes. That register shall be made publicly available on the internet.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
