Omnibus package IV: Updates to the Battery Regulation

On 21 May 2025, as part of the Omnibus IV package, the European Commission proposed a regulation to postpone the start of the due diligence obligations under the Regulation (EU) 2023/1542 (the Battery Regulation) to 27 August 2027. At the same time, this would give the European Commission more time to publish guidelines on the formulation of due diligence obligations. In addition, relief measures for small and mid-cap companies were proposed. The Council approved the new date on 19 June 2025. We will keep you updated.

‍

‍Postponement of the date of application for economic operators

Article 48(1) of the Battery Regulation stipulates that, before placing batteries on the market or putting them into service, economic operators must fulfil certain due diligence obligations, which are in form similar to those of the Supply Chain Due Diligence Act (LkSG). For instance, they must adopt a comprehensive corporate strategy (Article 49(1)), for which they must collect specific information (Article 49(2)), identify and assess risks in their respective supply chains (Article 50(1)), and provide relevant information to the authorities (Article 52(1)).

The original application date of 18 August 2025 is now to be postponed to 18 August 2027 with the proposal published by the European Commission on 21 May 2025 and adopted by the Council on 19 June 2025. Reasons given for the postponement include the battery industry needing more time to adapt its supply chains due to a changing geopolitical landscape and the associated challenges, as well as the fact that about half of the Member States have not yet designated a notifying body in accordance with Article 48(2) of the Battery Regulation for the assessment of corporate strategies.

‍

‍Postponement of the European Commission’s guidelines; harmonization with the CSDDD

Furthermore, under Article 48(5) of the Battery Regulation, the European Commission was required to publish guidelines on the due diligence obligations under Articles 48, 49, 50 and 52 by 18 February 2025. This has not yet happened. The proposal now states that the guidelines must be published by 26 July 2026 instead. The European Commission justifies this by stating that it aims to harmonize the content with that of the pending guidelines on the EU Supply Chain Due Diligence Directive (CSDDD). The CSDDD guidelines are currently scheduled for publication by 26 January 2027, in accordance with Article 19(3) of the CSDDD. However, given that the amendments to the CSDDD are still being discussed as part of the Omnibus I package and, in particular, the Council's protracted position-finding process, the prospect of achieving this level of harmonization seems doubtful. In any case, economic operators will probably have to wait a little longer for the guidelines on due diligence obligations under the Battery Regulation.

‍

‍Exemption from due diligence obligations for small and mid-cap companies

In addition, the Commission proposes introducing a ‘mid-cap’ category to provide relief for small and medium-sized enterprises. Mid-cap companies are those with medium market capitalization that do not qualify as small or medium-sized enterprises under Recommendation 2003/361/EC but at the same time have fewer than 750 employees and either have a turnover of less than EUR 150 million or a balance sheet total of less than EUR 129 million. According to the new proposal for Article 47 of the Battery Regulation, companies with a turnover of less than EUR 150 million should also be excluded from the scope of Chapter VII of the Battery Regulation. This is to prevent too many companies from being classified as ‘large companies’ and to avoid excessive obligations that could hamper growth and restrict competitiveness.

‍

‍Outlook

The Commission's proposal initiated the legislative process. As was the case with the stop-the-clock project of Omnibus I package, progress was swift. Following the Council's approval of the postponement on 19 June 2025, negotiations with the European Parliament are now underway. In view of the imminent start of application on 18 August 2025, it is to be hoped that an agreement will be reached soon, also in the interests of legal certainty.