Due diligence under the EU Batteries Regulation: who is covered, what applies from 2027 and what the Omnibus is set to change

What it is about

Regulation (EU) 2023/1542 concerning batteries and waste batteries (Batteries Regulation) contains its own supply chain due diligence obligations in Chapter VII, Articles 47 to 53. They concern the raw materials listed in Annex X: cobalt, natural graphite, lithium and nickel, and the chemical compounds based on them that are necessary for manufacturing the active materials of batteries. Unlike general supply chain laws, the Regulation is linked to a product: the obligations apply to economic operators that place batteries on the market or put them into service in the EU.

Scope and threshold

Under Article 47, Chapter VII does not apply to economic operators that had a net turnover of less than EUR 40 million in the financial year preceding the last financial year and that are not part of a group which exceeds that limit on a consolidated basis. Also excluded are economic operators that place on the market batteries prepared for re-use, repurposed or remanufactured, where those batteries were already on the market before. EU rules on minerals from conflict-affected and high-risk areas remain unaffected.

Start date: postponed to 18 August 2027

The obligations were originally to apply from 18 August 2025. Regulation (EU) 2025/1561 of 18 July 2025, published on 30 July 2025, postponed the start date in Article 48(1) to 18 August 2027. The recitals cite the shifting geopolitical landscape for raw material sourcing and the designation of notified bodies, which is taking longer than expected. At the same time, the deadline for Commission guidelines under Article 48(5) was moved from 18 February 2025 to 26 July 2026, in order to align it with the timetable of the EU Corporate Sustainability Due Diligence Directive (CSDDD).

The End-of-Life Vehicles Regulation (EU) 2026/1738, published on 24 July 2026, also amends the Batteries Regulation, but only Annex I. The due diligence obligations in Chapter VII are not affected.

The obligations in detail

Policy and management system (Article 49). The economic operator adopts a battery due diligence policy for the raw materials and risk categories in Annex X and communicates it clearly to suppliers and the public. It entrusts members of top management with overseeing the policy, keeps records for at least ten years and operates a system of controls and transparency that allows upstream actors to be identified. The policy is incorporated into contracts with suppliers. In addition, there must be a grievance mechanism with an early-warning system, based on the UN Guiding Principles on Business and Human Rights.

Risk management (Article 50). Risks in the categories of Annex X point 2 must be identified and assessed. These include environmental and health risks, human rights and workers' rights such as child labour and forced labour, and community life, including that of indigenous peoples. The results are reported to top management. A risk management plan is required. Where attempts at mitigation fail, suspending or terminating the relationship with a supplier must be considered. Suppliers and affected stakeholders must be consulted before a mitigation strategy is adopted.

Third-party verification (Article 48(2), Article 51). The policy must be verified independently by a notified body and subjected to periodic audits. The verification covers all activities, processes and systems used to fulfil the obligations under Articles 49, 50 and 52. It follows the principles of independence, competence and accountability set out in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Where the policy meets the requirements, the notified body issues an approval. The documentation must be kept for ten years (Article 48(3)).

Disclosure (Article 52). Audit reports and the approval must be made available to the authorities on request. Immediate downstream purchasers receive the relevant information. The policy must be reviewed annually and a public report must be made available, including on the internet.

Recognised schemes (Article 53). Governments, industry associations and other scheme owners may apply for recognition of their due diligence schemes by the Commission. The Commission maintains a public register of recognised schemes. The responsibility of the individual economic operator remains (Article 48(4)).

The ongoing Omnibus procedure

In its Omnibus IV proposal COM(2025) 501 of 21 May 2025, the Commission proposed two further changes. The threshold in Article 47 is to rise from EUR 40 million to EUR 150 million in net turnover, in order to exempt small mid-cap enterprises. The report under Article 52(3) is to be published for the first time one year after the start date and at least every three years thereafter, instead of annually. In the European Parliament, the committees responsible adopted their report on 25 February 2026. On 26 June 2026, the Committee of Permanent Representatives (Coreper) confirmed in writing an agreement reached in interinstitutional negotiations. The Parliament committees responsible approved the agreed text on 2 July 2026. Parliament's plenary has not yet voted.

What companies typically examine

1. Is turnover, including on a consolidated basis, above the relevant threshold?
2. Which batteries and which Annex X raw materials are concerned, and can upstream actors be traced back to extraction?
3. Can existing processes under the LkSG or the CSDDD be built upon, such as the risk analysis and the complaints procedure?
4. Which notified body and which recognised scheme are possible options for third-party verification?

This post provides a general overview of the legal position and does not replace legal advice on individual cases.

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