European Council Implemented Legislation to Temporarily Pause Obligations on Responsible Battery Use Regulations
The European Union (EU) has taken a significant step towards supporting industrial competitiveness by adopting a new law that eases EU rules for batteries. This move is part of the broader "Omnibus IV" package, an initiative designed to bolster the EU's position in various sectors, including the battery industry.
The purpose of the EU's postponement of the due diligence obligations for batteries, as part of the Omnibus IV package, is to give battery producers, exporters, and related stakeholders more time to adapt their supply chains and prepare for the complex new regulatory requirements. This postponement is in response to challenges such as the shifting geopolitical landscape and delays in authorizing third-party verification bodies essential for assessing compliance.
Originally, the due diligence obligations—which involve adopting comprehensive corporate strategies, assessing risks in supply chains, collecting information, and reporting to authorities—were set to apply from August 18, 2025. However, the European Commission and Council agreed to postpone this start date until August 18, 2027.
This postponement has several impacts. Battery producers and exporters receive two additional years to develop and implement compliant due diligence systems, easing immediate regulatory pressure and helping maintain EU competitiveness in the battery sector. The delay also addresses practical issues, such as half of the EU Member States not yet designating notified bodies (third-party verifiers) required for assessing corporate strategies under the due diligence framework.
Companies with turnover under €150 million are now exempt from these due diligence and supply chain tracing rules, an increase from the previous threshold of €40 million, reducing burdens on smaller companies. Reporting obligations for affected companies will be less frequent, with public reporting beginning one year after the new start date and then every three years, rather than annually.
The European Commission is also tasked with publishing official guidance on due diligence one year before the obligations take effect (by July 26, 2026), which is expected to support smoother implementation. Despite the postponement, the delay is not considered a buffer for late action; companies, especially in sectors like Battery Energy Storage Systems (BESS), must use this time to fully implement and verify due diligence systems by 2027 to comply with the regulation.
The new law, which will be published in the EU's Official Journal in the coming days, is part of the 'Omnibus IV' package, which includes proposals for a directive and a regulation on mid-caps, simplification of certain data protection obligations for SMEs and SMCs, and proposals for a directive and a regulation regarding the digitalization and alignment of common specifications amending 20 pieces of EU product legislation under single market rules.
This move towards easing regulatory requirements for batteries is in line with the Budapest declaration of 8 November 2024, which emphasized the need for a simplification revolution, aiming for a clear, simple, and smart regulatory framework for businesses. EU leaders have also urged co-legislators to prioritize and finalize the Omnibus simplification packages as soon as possible in 2025.
In summary, the postponement aims to facilitate effective compliance and regulatory readiness across the battery industry, balancing the need for sustainability and responsible sourcing with practical industry constraints and administrative readiness. The delay offers more time for the setting up of third-party verification bodies and provides additional time to battery makers and exporters to comply with these new environmental due diligence rules.
The European Commission is also working on guidance for due diligence in environmental-science sectors such as battery production, which could further improve the industry's technology and sustainability practices in accordance with the Budapest declaration's goal of a simplified yet smart regulatory framework. The delay in the application of due diligence obligations affords an opportunity for the integration of advanced scientific methods and innovative technologies in the environmental-science sector, boosting the competitiveness of EU battery producers.
