2.0 Background and Context

2.1 Battery Pack Structure

• Prismatic cells, which are rectangular in shape and are enclosed in rigid casing, making it easy to efficiently stack them.
• Cylindrical cells, which are encased within a rigid cylindrical casing. Unlike other battery formats, this shape prevents swelling (an undesirable phenomenon).
• Pouch cells, which are not housed in a rigid casing. Consequently, they are an efficient use of space. However, their lack of protection leaves them more susceptible to damage.

2.1.1 Battery Cells

• Two electrodes – one negative (the anode) and one positive (the cathode). These are typically two dissimilar metals that are electrical conductors and enable the release and absorption of electrons during use.
• An electrolyte, which enables the transference of ions between a cell’s two electrodes during charge and discharge.
• A separator, which prevents the cell from short circuiting. This is typically a thin, porous membrane that does not restrict the flow of electrons but ensures that physical space is maintained between the two electrodes.

  Orendorff, C. (2012). The Role of Separators in Lithium-Ion Cell Safety. The Electrochemical Society Interface, 21, 61-65. Retrieved from: https://iopscience.iop.org/article/10.1149/2.F07122if/pdf#:~:text=The%20primary%20function%20of%20the,robustness%20and%20porosity%2Ftransport%20properties.

2.1.2 Battery Modules

• Joining multiple cells in series increases voltage, thus enabling lower current for the same power output and consequently improving battery efficiency. For a given battery capacity, a higher voltage also enables faster charging, as chargers can deliver more power at a higher voltage without requiring higher charging currents.

• Joining multiple cells in parallel increases capacity and current. Capacity is directly related to vehicle range, and higher currents enable faster acceleration and higher sustained speeds.

• Measures and controls key performance indictors (voltage, current, temperature).
• Determines the current state-of-charge (SoC) and state-of-health (SoH) of the battery.
• Identifies faults within the battery.
• Records data and communicates information related to battery health.

• A battery monitoring integrated circuit (BMIC);
• A cell management controller (CMC); and
• A battery management controller (BMC).

2.1.3 Battery Packs

2.2 Policy Landscape

1. The Batteries Directive (2006/66/EC), which is a producer responsibility piece of legislation (the objectives of which can be interpreted and implemented slightly differently in each Member State). It aims to establish rules for the collection, recycling, treatment and disposal of batteries and to restrict the marketing of batteries containing heavy metals (mercury or cadmium). This will soon be repealed and replaced by the new Batteries Regulation.
2. The Batteries Regulation (2023/1542) was approved by the European Union in July 2023 and is now the key piece of producer responsibility policy affecting EV batteries (and batteries for light means of transport (LMT), like e-scooters and e-bikes) in the EU.

   European Commission (2023). Regulation (EU) 2023/1542 of the European Parliament and of the Council Concerning Batteries and Waste Batteries, Amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and Repealing Directive 2006/66/EC. Official Journal of the European Union: L, 191, 1-117 Retrieved from: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R1542

   As a Regulation, it will apply automatically and uniformly across the EU. In line with the circularity ambitions of the European Green Deal, the Batteries Regulation is the first piece of European legislation taking a full life-cycle approach in which sourcing, manufacturing, use and recycling are addressed and enshrined in a single law. The Batteries Regulation starts to apply from 18 February 2024, and from then onwards new obligations and requirements will gradually be introduced.
   Starting from 2025, the Batteries Regulation will gradually introduce declaration requirements, performance classes and maximum limits on the carbon footprint of EV and LMT batteries. Targets for recycling efficiency, material recovery and recycled content will also be introduced from 2025 onwards. Due diligence obligations will also apply where companies must identify, prevent and address social and environmental risks linked to the sourcing, processing and trading of raw materials such as lithium, cobalt, nickel and natural graphite contained in their batteries. To help consumers make informed decisions on which batteries to purchase, key data will be provided on a label via a QR code, which will provide access to a digital passport with detailed information on each battery, including material composition and hazardous substances. As an EPR Regulation, there are numerous technical, informational and financial obligations for the battery producers (manufacturers, importers, distributors) and any authorised representative, as well as the producer responsibility organisations (PROs) in the Member State.
   Of specific note for EV and LMT batteries are the following requirements:
   • Mandatory minimum levels of recycled content for Starting, Lighting and Ignition (SLI) batteries and EV batteries. These are initially set at 16% for cobalt, 85% for lead, 6% for lithium and 6% for nickel. From 18 August 2036, for batteries now including LMT batteries, these targets increase to 26% cobalt, 85% lead, 12% lithium and 15% nickel.  
     These targets do not apply to batteries that have been subject to preparation for re-use, preparation for repurposing, repurposing or remanufacturing, if the batteries had already been placed on the market or put into service before undergoing such operations.
   • Introduces a dedicated separate collection objective for LMT waste batteries (51% by the end of 2028 and 61% by the end of 2031), relative to placed on market figures;
   • Sets a recycling target of 65% by average weight of lithium-based batteries by the end of 2025 and 70% by the end of 2030; and  
   • Sets a target for lithium recovery from waste batteries of 50% by the end of 2027 and 80% by the end of 2031, which can be amended through delegated acts, depending on market and technological developments and the availability of lithium.

3. The Waste Framework Directive (WFD, 2008/98/EC), which sets the basic concepts and definitions related to waste management, including the management of hazardous waste. The WFD was amended in 2018 (Directive 2018/851) and includes minimum requirements for Extended Producer Responsibility across a range of products, including for batteries. This is referenced in the new Batteries Regulation, and it requires that producer fees are modulated, as a minimum by battery category and battery chemistry, taking into account as appropriate the rechargeability, the level of recycled content in the manufacture of batteries and whether the batteries were subject to preparation for re-use, preparation for repurposing, repurposing or remanufacturing, and their carbon footprint.
4. The Industrial Emissions Directive (IED), which aims to achieve a high level of protection of human health and the environment by reducing harmful industrial emissions. It covers most of the recycling and end-of-life waste management of batteries, as well as the production of the nonferrous metals and chemicals used in battery manufacture. Under the IED, any facilities considered to be in-scope must obtain permits that set conditions for operation in line with the directive. The IED takes an integrated approach, which means that these permits must cover all pollutants:
   • Emissions to air, water and land.
   • Generation of waste.
   • Use of raw materials.
   • Energy efficiency.
   • Noise.
   • Prevention of accidents.
   • Restoration of the site upon closure.

• The Directive on End-of-Life Vehicles (ELVD), which includes considerations related to producer responsibility in the automotive industry and requires de-pollution of vehicles, including the removal of their batteries prior to vehicle reprocessing (e.g. shredding).
• The Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), which contains requirements for the safe handling and use of chemicals.

• The Classification, Labelling and Packaging Regulation (CLP), which ensures that hazards presented by chemicals are clearly communicated through the supply chain and to consumers.

2.3 Permitting

• Production and storage of battery chemicals. Many cathode chemicals are classified as hazardous under the CLP Regulation. Thus, any operators engaging in these activities must identify hazards, assess associated risks (probability and severity) and determine effective mitigation tactics. Companies must be able to prevent explosions and fires, as well as to recover chemical leaks. Some chemicals may be subject to REACH requirements.

• Transport of battery chemicals. Some of the raw materials used in battery manufacture are classified as dangerous goods (including cobalt and lithium).
• Manufacture of batteries. Any manufacturer, importer or seller of batteries must ensure that their batteries are marked with the correct labels. This includes separate collection, capacity and (if necessary) chemical labelling.
• Storage of batteries. REACH and CLP regulation do not apply to articles from which chemicals are not intended to be released during their intended purpose of use. Storage of batteries – even in large quantities – is not regarded as an activity that requires a license as defined in the Act on Chemical Safety.

  Ministry of Trade and Industry (2004) Regulations on restrictions on the use of chemicals and other products hazardous to health and the environment (the product regulations). Retrieved from: https://lovdata.no/dokument/SF/forskrift/2004-06-01-922

  Thus, batteries need not be labelled with the hazard labels required under the CLP Regulation.

• Transport of batteries. Lithium-ion batteries are always classified as dangerous during transport (whether pre- or post-use). Air transport of some batteries is forbidden. Applicable transport regulations are dependent on the battery technology, capacity and state in which they are transported.
• Recycling of batteries. Used and decommissioned batteries must be clearly marked with their condition. They must be kept separate from new batteries and – if possible – stored in dedicated recycling containers away from other operations. Defective batteries must be separated from other decommissioned batteries and stored in small quantities in fireproof conditions.

2.3.1 Norway

• Prevent any occurrence of pollution;
• Limit any pollution that does occur; and
• Avoid issues caused by poorly handled waste management practices.

2.3.2 Sweden

• Protecting human and environmental health from damage (through pollutants or other impacts).
• Preserving natural and cultural environments.
• Maintaining and restoring biodiversity.
• Ensuring good management of land use, water and the physical environment in ecological, social, cultural and economic terms.
• Encouraging reuse and recycling so that natural cycles are established and maintained.

1. “A” indicates significant environmental impact. Activities receiving this categorisation require a license from the Land and Environment Court. There are five Land and Environment Courts in Sweden.
2. “B” denotes moderate environmental impact. Activities classified as “B” must obtain a license for operation from one of the 12 environmental assessment delegations in Sweden.
3. “C” activities do not require licensing. However, supervisory authorities must be notified of their operation. Supervisory authorities are typically the municipality in which the activity is located.
4. “U” activities are all other activities. While they do not require permission or notification, they must still comply with the Environmental Code.

2.3.3 Finland

• Production and storage of battery chemicals. Plants handling large volumes of chemicals must be supervised by the Finnish Safety and Chemicals Agency (Tukes). Smaller plants are supervised by local rescue departments. All plants are subject to the same chemical safety legislation. Examples of sites that have obtained environmental permits for the production of battery chemicals include Terrafame and Keliber.
• Transport of battery chemicals. Any vehicles or packaging used for dangerous goods must fulfil the technical requirements of the legislation and regulations on the transport of dangerous goods (VAK).

  Finlex (2023). Law on the transport of dangerous goods. Retrieved from: https://www.finlex.fi/fi/laki/alkup/2023/20230541

  Tukes supervises compliance with this legislation.
• Storage of batteries. The storage of batteries in new buildings is supervised by the local building supervision authority. The storage of batteries in an existing building may require a change in the purpose of use of the building to be sought. The rescue department supervises fire safety during storage by means of fire inspections.
• Transport of batteries. In 2021, the Nordics introduced an export permit aimed at facilitating the transport of end-of-life batteries from Sweden and Norway into Finland for recycling. Finnish recycler Fortum received a permit to do this in 2021.

  Battery Industry (2021) New Nordic’s export permits help Fortum recycling electric car batteries in Finland. Retrieved from: https://batteryindustry.tech/new-nordics-export-permits-help-fortum-recycle-electric-car-batteries-in-finland/

  Little information is publicly available related to these permits.