EU Battery Regulation : supply chain traceability and risk management

Abstract

The battery industry plays a vital role in the green transition and sustainable development. The European Union introduced the Battery Regulation in 2023 to ensure the sustainability of batteries throughout their lifecycles. The regulation requires companies to trace the origin and assess the risks associated with four key minerals used in batteries: cobalt, lithium, nickel, and natural graphite. The aim of the thesis was to enhance data collection and gain visibility in the battery raw material supply chain. The research was conducted as two separate sections. A pilot study was conducted to trace the supply chain of a selected battery cell. However, the cell supplier declined to share location-based information due to commercial sensitivity and the lack of regulatory guidelines. A broader survey was distributed to 13 battery cell manufacturers to assess their maturity in traceability. Only two companies completed the survey, both claiming full visibility from mine to gate. Again, concerns about data confidentiality limited the reply rate. The results indicate that while suppliers are aware of the regulation and committed to compliance, complete transparency is not yet achievable. The findings provide a basis for future collaboration and highlight the importance of clear regulatory guidelines to support traceability efforts in the battery industry.