Regulation (EU) 2023/1542 (the New Battery Regulation) repeals EU Directive 2006/66/EC (the former EU Batteries Directive) and seeks to improve the sustainable battery value chain for all batteries, taking into account the carbon footprint of battery manufacturing, the ethical sourcing of raw materials and facilitating the re-use, repurposing and recycling of materials from batteries reaching their end of life.

Article 2 of the regulation sets out the regulation’s objectives, namely that the new battery regulation intends to prevent and reduce the adverse impacts of batteries on the environment, and to protect the environment and human health by reducing the adverse impacts of generating and managing ‘waste’ batteries.

Article 7 of the regulation establishes that a carbon footprint must be produced for electric vehicle battery models, rechargeable industrial battery models with a capacity greater than 2 kWh and ‘light means of transport’ (LMT) battery models, and that such batteries must bear a conspicuous and clearly legible label indicating their carbon footprint.

Article 48 sets out the battery due diligence policies, include an obligation for the European Commission to publish guidelines on the application of due diligence requirements by February 18th 2025. Economic operators that place batteries on the market are obliged to fulfil the due diligence obligations and implement battery due diligence policies from August 18th 2025. Article 83 of the regulation's preamble states that when effectuating a battery due diligence policy, the economic operator should base it on internationally recognised due diligence standards and principles, such as those in the United Nations Guiding Principles on Business and Human Rights, the Ten Principles of the United Nations Global Compact, the United Nations Environment programme (UNEP) Guidelines for Social Life Cycle Assessment of Products, the International Labour Organisation (ILO) Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct.

Article 77 establishes that from February 2027 onwards, LMT batteries, industrial batteries with a capacity greater than 2kWh and each electric vehicle battery placed on the market must have a ‘battery passport’ (an electronic record of the battery). As Article 123 of the regulation's preamble states, the battery passport is intended to enhance transparency along supply and value chains for all stakeholders, by enabling the tracking and tracing of batteries and providing information about the carbon intensity of their manufacturing processes as well as the origin of the materials used and whether renewable materials are used, and the recycling and recovery processes to which the batteries could be subject to at the end of their lifetime.