IDTechEx Discuss the Implications of the European Commission

IDTechEx Discuss the Implications of the European Commission's Proposed Regulations on Li-ion Sustainability


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BOSTON, Dec. 14, 2020 /PRNewswire/ -- The European Commission (EC) has proposed stricter regulations regarding the sustainability of batteries. The previous Battery Directive dated back to 2006, when safe recycling and disposal of Pb-acid and Ni-Cd batteries were the primary concern and the Li-ion market was still in its infancy. The regulations are intended to improve the sustainability of batteries, including Li-ion, by reducing carbon footprint, use of hazardous materials, and increasing the use of responsibly sourced material.
The announcement comes after a 2-3 year period of increased investment into the development of a European Li-ion battery industry, stemming from governments, automotive OEMs, established Asian battery manufacturers, and also European start-ups, such as Northvolt, Freyr, and Britishvolt. Starting from scratch, these European battery manufacturers must compete with established giants with decades of battery R&D and manufacturing experience. Providing cells and batteries with a lower CO2 footprint and more sustainable and transparent material use may well have been a strategy to allow them to differentiate from the Asian incumbents. Certainly, Northvolt and Freyr highlight their strategies for renewable power use and sustainably sourced materials. Whether this provides them with an advantage, having designed-in sustainability strategies from the start, over companies such as LG Chem, CATL, or Samsung, remains to be seen.

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