Lessons from the EU’s Sustainable Batteries Regulation
The rapid growth of electric vehicles (EVs)—from cars and trucks to buses and trains—places immense pressure on battery supply chains, beginning with mineral extraction and refining processes that have significant environmental and social impacts. While EVs are essential to reducing oil dependence and meeting global climate goals, consumer countries can develop policies to address these impacts.
Our new report provides a framework for building a more responsible battery supply chain. Drawing from the European Union’s Sustainable Batteries Regulation (2023), it outlines key challenges—from mining and refining to battery traceability and end-of-life management—and offers actionable recommendations for policymakers and industry leaders worldwide. Some key recommendations for government leaders include:
- Mandating transparency and traceability requirements for sourcing critical minerals, such as lithium, cobalt, graphite and nickel, through regulations and supply chain audits to ensure responsible mining practices and minimize human rights and environmental impacts.
- Developing rules to minimize the environmental footprint of both domestic mineral processing and imported minerals, including limits on water usage, energy consumption, and pollutant emissions, as well as mandating the use of best available techniques.
- Implementing mandatory due diligence requirements aligned with international standards, ensuring they are integrated into supplier contracts for key transition minerals to identify and address social and environmental risks in battery production.
In addition, industry associations and manufacturers could establish standards for the safe handling and assembly of battery packs, including guidelines for worker safety, fire prevention, and transportation safety.
By drawing inspiration from the European Union’s Sustainable Batteries Regulation, jurisdictions worldwide can tailor and adopt this blueprint to address their specific contexts and challenges, thereby advancing the transition towards a greener and more sustainable future.
Access the report here: A Policy Blueprint for Ensuring Sustainable Battery Supply Chains
Contact Shruti Sarode or Ethan Elkind for more information.