2024-07-08
Challenges and Opportunities: The Impact of the EU's New Battery Regulation on Chinese Battery Manufacturers
With the introduction of the EU's new battery regulation, Chinese battery manufacturers are facing a series of new challenges. These challenges involve not only production and technology but also data collection, regulatory compliance, and supply chain management. Here is a detailed analysis of these specific challenges:
1. Carbon Footprint Declaration
The new regulation requires battery manufacturers to disclose the carbon footprint of the entire lifecycle of their batteries. This means Chinese battery manufacturers need to collect and calculate carbon emissions data from upstream minerals and materials to battery production, recycling, and reuse. This requires companies to have the necessary data collection and calculation capabilities and to overcome difficulties such as the lack of standardized databases and the absence of international recognition mechanisms. This places higher demands on companies' information management systems, forcing them to invest more in data management and environmental monitoring.
2. Requirements for Battery Material Recycling and Reuse
The new regulation sets proportion requirements for the use of recycled materials in batteries. However, China has not yet established a certification system for the use of recycled raw materials, which will hinder future exports. To comply with EU standards, Chinese battery manufacturers need to accelerate the establishment of a certification system for the use of recycled raw materials and enhance related technical capabilities.
3. Information Disclosure Challenges in the Battery Passport
Starting in 2027, batteries exported to Europe must have a "battery passport" that records information such as the manufacturer, material composition, carbon footprint, and supply chain. This places higher demands on battery companies' information transparency and data-sharing capabilities. Chinese battery manufacturers need to strengthen the construction of information management systems to ensure the accuracy and transparency of information and establish effective data-sharing mechanisms to meet EU requirements.
4. Strict Regulatory Requirements
The new battery regulation sets specific standards for the health status, expected lifespan, and safety of batteries. Chinese battery manufacturers need to ensure their products meet these standards, which may require upgrading their production processes and quality control systems. This process may involve significant technological modifications and investments but also offers an opportunity to enhance product competitiveness and market share.
5. Restrictions on Hazardous Substances
The new battery regulation imposes limits on the content of hazardous substances in batteries. Chinese battery manufacturers need to ensure their battery products comply with these restrictions. This means companies need to strictly manage their supply chains to ensure the compliance of raw materials and improve production processes to reduce the use of hazardous substances.
6. Supply Chain Due Diligence
The regulation requires battery manufacturers to conduct supply chain due diligence to ensure the legality and sustainability of raw material sources. Chinese battery manufacturers need to establish comprehensive supply chain management systems, rigorously screen and audit suppliers, and ensure all raw materials comply with EU regulations. This not only helps enhance the company's image but also strengthens market competitiveness.
7. Performance and Durability Requirements
The EU sets specific requirements for battery performance and durability. Chinese battery manufacturers need to make technological improvements and product upgrades to ensure their products meet these standards. This may involve investment in research and development and enhancement of production technology, but it also offers an opportunity to improve product quality and brand reputation.
8. Safety Requirements for Stationary Energy Storage Systems
For stationary energy storage systems, the new regulation sets strict safety testing requirements. Chinese battery manufacturers need to ensure their products pass these safety tests. This means companies need to enhance their safety design and testing capabilities to ensure product safety and reliability in various application scenarios.
9. Battery Labeling Requirements
The new battery regulation sets detailed requirements for battery labeling, including manufacturer information, battery type, production date, weight, capacity, and more. Chinese battery manufacturers need to make corresponding adjustments to product labels to ensure compliance with EU regulations. This involves not only label design and production but also updates and upgrades to information management systems.
Facing these challenges, Chinese battery manufacturers need to proactively respond by achieving compliance with the EU's new battery regulation through technological innovation, management enhancement, and regulatory compliance. Although the process is challenging, it also offers an opportunity to improve product quality and corporate competitiveness. In the context of global energy transition and green development, battery products that meet international standards will have broader market prospects and stronger competitiveness.