European Council Imposes Temporary Hold on Battery Compliance Obligations through Legislative Action
EU Delays Due Diligence Obligations for Battery Producers by Two Years
The European Union (EU) has adopted a new law, part of the 'Omnibus IV' package, that temporarily suspends the application of due diligence obligations for batteries until August 18, 2027. This delay provides additional time for battery makers and exporters to comply with new environmental due diligence rules.
The Omnibus IV package, published on May 21, 2025, includes a "Stop the Clock" Battery Due Diligence Regulation, postponing the obligations by two years from the initial date. The delayed obligations require economic operators to implement due diligence policies addressing environmental, social, and human rights risks related to sourcing and processing raw materials used in batteries placed on the EU market.
The regulation entered into force on July 31, 2025, following its publication in the Official Journal of the EU on July 30, 2025. The EU's battery regulation, adopted in 2023, originally obliged battery producers to put in place due diligence policies, have them verified, audited, and publicly report on their practices to prevent adverse environmental impacts.
The postponement will offer more time for the setting up of third-party verification bodies. The Commission will be required to publish due diligence guidelines one year before the obligations take effect, as stated in the earlier law.
The Budapest declaration of November 8, 2024, advocated for a simplification revolution, aiming to establish a clear, simple, and smart regulatory framework for businesses and to significantly reduce administrative, regulatory, and reporting burdens, particularly for Small and Medium-sized Enterprises (SMEs). The Omnibus IV package supports industrial competitiveness by reducing regulatory complexity.
The 'Omnibus IV' package also contains proposals for a directive and for a regulation on mid-caps, a simplification of certain data protection obligations for SMEs and small mid-caps (SMCs), and proposals for a directive and a regulation regarding the digitalisation and alignment of common specifications amending 20 pieces of EU product legislation under single market rules.
In October 2024, the European Council called on all EU institutions, member states, and stakeholders to prioritize work, particularly in response to the challenges identified in the reports by Enrico Letta and Mario Draghi. EU leaders also urged the co-legislators to prioritize the Omnibus simplification packages and complete them as soon as possible in 2025.
This timeline gives companies additional time to prepare for compliance and allows the Commission extra time to finalize and disseminate the detailed guidelines for due diligence under the Sustainable Batteries Regulation.
- The delay in the application of due diligence obligations for batteries, as part of the Omnibus IV package, could potentially facilitate the integration of advanced technological solutions in the battery production industry, ensuring a more sustainable and responsible approach to sports equipment manufacturing.
- With the European Union providing more time for the setting up of third-party verification bodies, it is anticipated that sports organizations could benefit from this initiative, thereby ensuring responsible sourcing and processing of materials used in their equipment.
