Author: Aidan Chan
The emerging trend and sustainability:
The transition from combustion engines to electric vehicles (EVs) is a global phenomenon that is reshaping the automotive industry. This push has been driven by efforts to reduce carbon emissions and combat climate change, especially considering that road vehicles accounted for around 15% of global CO2 emissions in 2018[1]. EVs do not emit carbon dioxide at street level [2], hence play an important role in reducing vehicle emissions[3]. The UK government has correspondingly announced that sales of new combustion engine cars will end by 2030, to be replaced by zero emission cars from 2035. This plan is in accordance with recommendations from the Commission on Climate Change that all vehicles sold should be electrically propelled by 2035[4] if the UK is to meet its 2050 net zero target[5]. EV production will have to drastically increase to meet these targets, with Morgan Stanley estimating that 36 million electric cars will need to be produced per year by 2030 to keep up with global demand[6].
The consequent need for more EV batteries (EVBs) to fuel this trend raises sustainability concerns down the line. EVBs on average have five to ten year warranties but their capacity and performance will decline over time[7]. So how should unviable EVBs at the end of their life cycles be dealt with? The wasteful path would be to continue landfill disposal as the primary method[8]. On top of burdening waste disposal systems, this fails to alleviate, even potentially adding to, EV supply chain emissions. Considering the relatively high emissions from energy intensive mining and production processes for EVBs compared to combustion engines[9], it is imperative to address supply chain emissions to maintain the sustainable edge of EVs. The superior path towards a circular EV supply chain, endorsed by the Faraday institution[10], is to develop targeted regulatory recycling regimes for EVBs.
Recycling and regulations:
The EU and UK currently lack infrastructure and comprehensive regulations to recycle EVBs on a large scale[11]. The Batteries Directive 2006 (‘Batteries Directive’)[12] and the End of life Vehicles Directive 2000 (‘ELV Directive’)[13] form the main regulatory framework outlining producer responsibility[14] for EVBs in the EU. The Batteries Directive was implemented as UK legislation through the Waste Batteries and Accumulators Regulations 2009 (‘Batteries Regulation’)[15] and continues to have effect by virtue of the EU Withdrawal Act 2018[16]. Collectively, this framework is inadequate for effectively enforcing producer responsibility within the EV industry as it fails to assign responsibility in a practical sense and does not establish specific recycling targets for EVBs[17].
The absence of specific categorisation distinguishing EVBs from other battery types and combustion engines is a hurdle for establishing effective recycling targets. EVBs are categorised broadly as ‘industrial batteries’ in the Batteries Directive, and lithium-ion batteries (a common type of EVB) are classified as “other batteries” for recycling efficiency purposes[18]. The Batteries Regulation has similarly generic classifications, while the ELV Directive on producer recycling responsibilities was designed with only combustion engine vehicles in mind[19]. Producers only have to meet a 50% recycling efficiency rate[20] for EVBs under the ‘other battery’ classification to comply with the Batteries Directive, which is a lower requirement than other battery types[21]. Moreover, since most of an EVB’s weight is attributed to its casing, this generic requirement does not proportionately target the recycling of key valuable metals in EVBs (such as cobalt or nickel)[22]. Instead, it allows for an indiscriminate approach that could result in more of the casing material being recycled, which are easier to extract and recycle. There is insufficient regulatory focus on recycling the key valuable metals used in EVBs, which will hinder the progress of creating circular EV supply chains[23].
Proposed regulatory changes:
In response to the lack specified EVB targets, a new regulation[24] has been proposed by the European Commission[25]. This details an “extended producer responsibility” principle, which involves designating a specific category for EVBs and EV producers[26]. Under independent EV categories, recycling obligations can be imposed with more certainty and conviction. Emphasis will be placed on selective EVB components and materials when setting recycling efficiency targets for waste EVBs[27] and minimum recycled-content requirements for new EVB production[28].
While in theory it would be ideal to require maximum recycling of all materials, the technological limitations, logistics and costs should be weighed up against the overarching sustainability aim when determining the targets. Information regarding an EVB’s composition and the technical recyclability specifications for different materials need to be available and comprehensible to the lawmakers undertaking this balancing exercise. This will allow practically feasible targets to be set while tailoring recycling requirements proportionately to the different EVB materials. By extension, this information should be available to those involved in EV supply chains to carry out recycling according to such specifications.
In view of the need to plan future recycling operations to meet targets, the proposed regulation suggests obligations requiring EV producers to provide relevant technical information. This includes recycled content declarations and component-specific labelling for recycling collection purposes[29]. Furthermore, a proposed ‘battery management system’ would contain data on an EVB’s expected lifetime and instructions on how to recycle or collect its components and materials[30]. This information would not only pave way for the monitoring of EV usage and sales, but would complement technical recycling specifications to establish quantifiable recycling regimes.
Recycling targets will not be met with information and metrics alone. Under both the Batteries Directive and Batteries Regulation, EV producers cannot ‘landfill, incinerate or improperly dispose of’ waste EVBs and are obliged to ensure they undergo approved recycling treatments[31]. Producers must cover all the costs for this recycling process and cannot turn consumers away if they are asked to take their EVB back[32]. These obligations will be enforced more stringently under the proposed regulation[33].
Issues:
Difficulties stemming from the proposed regulation exist regarding the obligations to meet targets. It is unclear whether producers who have carried out their duties under the ELV Directive in repurposing EVBs are still required under the Batteries Directive to deal with the EVB following the end of its repurposed life[34]. European Commission proposals provides some clarity, with the preferred option being the designation of EVBs as “waste” at the end of their first life. Repurposing will likely be considered as a form of waste treatment and repurposed EVBs will be classified as new products[35]. Separately, Eucobat has highlighted the hefty costs for meeting doubled recycling targets, including the recycling target for specific materials in EVBs on top of the target for general battery types. These are both areas in which regulations may overlap and create extra burden for producers, which should be avoided through future regulatory clarifications.
Technologically, recycling processes for EVBs are not fully developed and research is still needed to improve efficiency. Not many EVBs on the market currently have reached the end of their first life so there has been insufficient volume to test or carry out large scale recycling. Given the health and safety hazards posed by EVBs through explosions, fires and toxic gas emissions, recycling operations will also have to have adequate safety measures in place. Ensuring these processes are sufficiently safe and efficient will not only require strict regulation, but also technological solutions and safeguards[36]. This will be reflected through increased costs incurred such as investment in R&D, transportation costs, and insurance[37], which could be used to argue against future regulatory obligations and targets.
Looking forward:
While future EU regulation would not be enforceable in the UK, the UK government has affirmed its stance towards recycling EVBs[38]. The UK maintains a strong interest in the EU’s proposed regulation as it seeks to establish a regulatory framework capable of enforcing circular EVB supply chains. While this proposed regulation is still under review in the Council, EV producers in the European market will be keeping a close eye on EVB-specific recycling targets[39]. If producers in the UK do not adhere to them, they stand to lose out on the EU market[40]. It is ‘unlikely’ that future EU regulation will be ignored as the EU’s proposed regulation will apply to Northern Ireland by virtue of the Northern Ireland Protocol[41]. Hence, a unified approach across the UK will probably be favoured over ‘any legislative divergence between Northern Ireland and Great Britain’[42].
Assuming there will be technological advancements to develop more effective recycling methods for processing EVBs in mass[43], legal obligations and targets should be imposed on EV producers to create more circular supply chains. These should be based on information regarding EVB composition, recycling procedure, and usage data to allow for practical regulatory measures to be implemented. This is with the overarching aim to establish achievable and quantifiable targets designed to recycle key materials within EVBs. With estimates that lithium-ion batteries requiring treatment will exceed 3,000,000 per year in the next decade[44], it is imperative that sustainable measures such as recycling and repurposing are firmly in place to tackle this surge. While there are issues to clarify, the proposed regulation provides important guidelines on how the EV industry can develop more sustainable practices.
Table of legislation:
Commission, ‘Proposal for a regulation of the European parliament and of the council concerning batteries and waste batteries, repealing directive 2006/66/EC and amending regulation (EU) No 2019/1020’ COM (2020) 798/3 Art 2(12),13,14, Table 1.
Council Directive 2000/53/EC of 21 October 2000 on end of life vehicles [2000] OJ L269.
Council Directive 2006/66/EC of 6 September 2006 on batteries and accumulators and waste batteries and accumulators and repealing Directive 91/157/EEC [2006] OJ L266/12 s 8,12.
European Union (Withdrawal) Act 2018 s 2
The Waste Batteries and Accumulators Regulations 2009, SI 2009/890. s 35,38.
Footnote:
[1] – Hannah Ritchie, ‘Cars, planes, trains: where do CO2 emissions from transport come from?’ (Our World in Data, 20 October 2020) <https://ourworldindata.org/co2-emissions-from-transport> accessed 3 April 2022.
[2] – European Environment Agency, ‘EEA report confirms: electric cars are better for climate and air quality’ (European Environment Agency, 22 November 2018) <https://www.eea.europa.eu/highlights/eea-report-confirms-electric-cars#:%7E:text=For%20local%20air%20quality%2C%20electric,exhaust%20emissions%20at%20street%20level.&text=Shifting%20to%20electric%20vehicles%20could,and%20traffic%20often%20stands%20still.> accessed 29 March 2022.
[3] – Jurgita Malinauskaite, Lorna Anguilano, Ximena Schmidt Rivera, ‘Circular waste management of electric vehicle batteries: Legal and technical perspectives from the EU and the UK post Brexit’ (2021) 10 International Journal of Thermofluids 1, 1.
[4] – Department for Transport, ‘Consultation outcome: Outcome and response to ending the sale of new petrol, diesel and hybrid cars and vans’ (Department for Transport, updated 14 July 2021) <https://www.gov.uk/government/consultations/consulting-on-ending-the-sale-of-new-petrol-diesel-and-hybrid-cars-and-vans/outcome/ending-the-sale-of-new-petrol-diesel-and-hybrid-cars-and-vans-government-response> accessed 3 April 2022.
[5] – Lewis Pickett, James Winnett, Dominic Carver, Paul Bolton, ‘Research Briefing: Electric vehicles and infrastructure’ (House of Commons Library, 20 December 2021) <https://commonslibrary.parliament.uk/research-briefings/cbp-7480/> accessed 2 February 2022, 9.
[6] – Jessica Alsford, ‘Accelerating the electric vehicle transition’ (Financial Times, 28 October 2021) <https://www.ft.com/content/41654a34-d472-4aa2-bdab-d5a685af800e> accessed 25 February 2022.
[7] – Pickett et al (n5) 73.
[8] – Over 11 million tonnes of lithium-ion batteries are forecasted to be discarded in landfills by 2030; Malinauskaite et al (n3) 1.
[9] – Pickett et al (n5) 70.
[10] – House of Commons Business, Energy and Industrial Strategy Committee, ‘Electric vehicles: driving the transition: Government Response to the Committee’s Fourteenth Report of Session 2017-19’ (HC 1881, 11 January 2019) 21.
[11] – Louis Dawson, Jyoti Ahuja, Robert Lee, ‘Steering extended producer responsibility for electric vehicle batteries’ (2021) 23 2 Environmental Law Review 128, 131-132.
[12] – Council Directive 2006/66/EC of 6 September 2006 on batteries and accumulators and waste batteries and accumulators and repealing Directive 91/157/EEC [2006] OJ L266/12, herein referred to as the ‘Batteries Directive’.
[13] – Council Directive 2000/53/EC of 21 October 2000 on end of life vehicles [2000] OJ L269, herein referred to as the ‘ELV Directive’.
[14] – Under the UK Batteries Regulation s 2(1), producer includes ‘any person that … places batteries, including those incorporated into appliances or vehicles, on the market for the first time in the UK on a professional basis’. Apart from the EV manufacturer, it could also capture importers/dealers who sell to consumers; Dawson et al (n11) 138.
[15] – The Waste Batteries and Accumulators Regulations 2009, SI 2009/890, herein referred to as the ‘Batteries Regulation’.
[16] – European Union (Withdrawal) Act 2018 s 2.
[17] – Dawson et al (n11) 130.
[18] – Classifications are based on chemistry rather than application; Batteries Directive Art 12.
[19] – Dawson et al (n11) 135.
[20] – Percentage sum of battery weight to be recycled.
[21] – Dawson et al (n11) 140.
[22] – EVB casings alone typically amount to around 35% of total battery weigh; Dawson et al (n11) 140.; Wangda Li, Evan Erickson, Arumugam Manthiram, ‘High-Nickel Layered Oxide Cathodes for Lithium-Based Automotive Batteries’ (2020) 5 Nature Energy 26, 26.
[23] – Malinauskaite et al (n3) 5.
[24] – EU regulations are directly applicable to EU member states and are legally enforceable, whereas directive are only instructions to a member state to introduce a law into its own legal system. (TFEU Arts 288,289)
[25] – Commission, ‘Proposal for a regulation of the European parliament and of the council concerning batteries and waste batteries, repealing directive 2006/66/EC and amending regulation (EU) No 2019/1020’ COM (2020) 798/3, herein referred to as the ‘proposed regulation’.
[26] – Proposed regulation Art 2(12).
[27] – Proposed regulation Table 1: Example targets of 65% recycling efficiency for lithium-ion batteries, and target material recovery rates for Co, Ni, Li, Cu at 90%, 90%, 35% and 90% in 2025 respectively.; Dawson et al (n11) 136.
Recycling cost efficiency for lithium-based batteries can be found in Commission, ‘Commission staff working document on the evaluation of the directive 2006/66/EC on batteries and accumulators and waste batteries and accumulators and repealing directive 91/157/EEC’ SWD (2019) 1300 final, 52.
[28] – Proposed regulation Art 8: Minimum requirements for new EVBs to contain 12% cobalt; 85% lead, 4% lithium and 4% nickel as of 1 January 2030, increasing to 20% cobalt, 10% lithium and 12% nickel from 1 January 2035.
[29] – Proposed regulation Art 13, Annex VI, and Table 1.
[30] – Proposed regulation Art 14, and Table 1.
[31] – Batteries Directive s 8 and Batteries Regulation s 35,38.
[32] – Ibid.; Malinauskaite et al (n3) 3.
[33] – Dawson et al (n11) 142.
[34] – ibid 137.
[35] – ibid 137.
[36] – ibid 131.
[37] – ibid 132.
[38] – Environment Agency, ‘ Waste Batteries: producer responsibility’ (Environment Agency, 26 June 2014, last updated 25 September 2018) <https://www.gov.uk/guidance/waste-batteries-producer-responsibility#:~:text=Battery%20producers%20are%20responsible%20for,the%20rules%20on%20this%20page> accessed 1 April 2022.
[39] – Dawson et al (n11) 138.
[40] – House of Commons European Scrutiny Committee, ‘European electric car battery rules could impact UK markets, investment’ (European Scrutiny Committee, 20 April 2021) <https://committees.parliament.uk/committee/69/european-scrutiny-committee/news/154027/european-electric-car-battery-rules-could-impact-uk-markets-investment/> accessed 2 April 2022.
[41] – House of Commons European Scrutiny Committee, ‘Thirty-fourth Report of Session 2019–21’ (European Scrutiny Committee, 20 January 2021) <https://committees.parliament.uk/publications/4409/documents/44671/default/> accessed 2 April 2022.
[42] – Malinauskaite et al (n3) 4.
[43] – Malinauskaite et al (n3) 8.
[44] – Dawson et al (n11) 132.; Meaghan Foster, Paul Isely, Charles Standridge, Mehedi Hasan, ‘Feasibility assessment of remanufacturing, repurposing, and recycling of end of vehicle application lithium-ion batteries’ (2014) 7 3 Journal of Industrial Engineering and Management 698, 698.
Bibliography:
Alsford J, ‘Accelerating the electric vehicle transition’ (Financial Times, 28 October 2021) <https://www.ft.com/content/41654a34-d472-4aa2-bdab-d5a685af800e> accessed 25 February 2022.
Dawson L, Ahuja J, Lee R, ‘Steering extended producer responsibility for electric vehicle batteries’ (2021) 23 2 Environmental Law Review 128.
Department for Transport, ‘Consultation outcome: Outcome and response to ending the sale of new petrol, diesel and hybrid cars and vans’ (Department for Transport, updated 14 July 2021) <https://www.gov.uk/government/consultations/consulting-on-ending-the-sale-of-new-petrol-diesel-and-hybrid-cars-and-vans/outcome/ending-the-sale-of-new-petrol-diesel-and-hybrid-cars-and-vans-government-response> accessed 3 April 2022.
Environment Agency, ‘ Waste Batteries: producer responsibility’ (Environment Agency, 26 June 2014, last updated 25 September 2018) <https://www.gov.uk/guidance/waste-batteries-producer-responsibility#:~:text=Battery%20producers%20are%20responsible%20for,the%20rules%20on%20this%20page> accessed 1 April 2022.
European Commission, ‘Commission staff working document on the evaluation of the directive 2006/66/EC on batteries and accumulators and waste batteries and accumulators and repealing directive 91/157/EEC’ SWD (2019) 1300 final.
European Environment Agency, ‘EEA report confirms: electric cars are better for climate and air quality’ (European Environment Agency, 22 November 2018) <https://www.eea.europa.eu/highlights/eea-report-confirms-electric-cars#:%7E:text=For%20local%20air%20quality%2C%20electric,exhaust%20emissions%20at%20street%20level.&text=Shifting%20to%20electric%20vehicles%20could,and%20traffic%20often%20stands%20still.> accessed 29 March 2022.
Foster M, Isely P, Standridge C, Hasan M, ‘Feasibility assessment of remanufacturing, repurposing, and recycling of end of vehicle application lithium-ion batteries’ (2014) 7 3 Journal of Industrial Engineering and Management 698.
House of Commons Business, Energy and Industrial Strategy Committee, ‘Electric vehicles: driving the transition: Government Response to the Committee’s Fourteenth Report of Session 2017-19’ (HC 1881, 11 January 2019).
House of Commons European Scrutiny Committee, ‘European electric car battery rules could impact UK markets, investment’ (European Scrutiny Committee, 20 April 2021) <https://committees.parliament.uk/committee/69/european-scrutiny-committee/news/154027/european-electric-car-battery-rules-could-impact-uk-markets-investment/> accessed 2 April 2022.
House of Commons European Scrutiny Committee, ‘Thirty-fourth Report of Session 2019–21’ (European Scrutiny Committee, 20 January 2021) <https://committees.parliament.uk/publications/4409/documents/44671/default/> accessed 2 April 2022.
Malinauskaite J, Anguilano L, Schmidt Rivera X, ‘Circular waste management of electric vehicle batteries: Legal and technical perspectives from the EU and the UK post Brexit’ (2021) 10 International Journal of Thermofluids 1.
Pickett L, Winnett J, Carver D, Bolton P, ‘Research Briefing: Electric vehicles and infrastructure’ (House of Commons Library, 20 December 2021) <https://commonslibrary.parliament.uk/research-briefings/cbp-7480/> accessed 2 February 2022.
Ritchie H, ‘Cars, planes, trains: where do CO2 emissions from transport come from?’ (Our World in Data, 20 October 2020) <https://ourworldindata.org/co2-emissions-from-transport> accessed 3 April 2022.Li W, Erickson E, Manthiram A, ‘High-Nickel Layered Oxide Cathodes for Lithium-Based Automotive Batteries’ (2020) 5 Nature Energy 26.