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Local battery makers to prep for stricter EU regulation

Published: 15 Jun. 2023, 17:09

Flags in front of the European Parliament in Strasbourg, France, on Tuesday [EPA/YONHAP]

The European Parliament on Wednesday passed a battery regulation that aims to improve sustainability in electric vehicle (EV) battery manufacturing in the region.

The upcoming legislation, which will be enacted once approved by the European Union’s Environment Council, is not likely to negatively impact the Korean battery makers' operation in the region, the Industry Ministry said in a release.

“As the EU battery act does not include any provisions that are discriminatory or disadvantageous to Korean companies, it is expected that the new regulation will not undermine local battery makers’ position in the European Union,” said the Ministry of Trade, Industry and Energy in the press release Wednesday.

“As the global standard requires batteries to be more eco-friendly, it could be an opportunity for Korea to preemptively overhaul the supply chain and institutional system in order to further improve our competitiveness in the industry.”

The new EV battery regulations require an obligatory declaration of the batteries' carbon footprint, a battery product to have a certain level of recovered materials such as lithium and nickel, and a “digital battery passport” with details on each battery unit and model.

The law's actual implementation will come later, with sub-decrees for the battery regulation due to be enacted from 2024 to 2028.

With time on their side until the regulation comes into effect, local battery makers will continue preparations for the upcoming rules, said the Industry Ministry.

Regarding the requirement for the minimum level of recovered materials in recycled batteries in particular, with around eight years left until its implementation, the companies will focus on securing the supply chain and technology for battery recycling.

BY SHIN HA-NEE [[email protected]]