China’s Commerce Ministry (MOFCOM) said on Thursday China hopes that the new EU Batteries Regulation, which entered into force on August 17, will not become as a new trade barrier since China has been a major battery supplier to the EU and contributed to its green transition.
China is highly aware of the new regulations coming into force which may further increase the short-term exporting costs for Chinese battery manufactures, Shu Jueting, a MOFCOM spokesperson said at a press briefing. In 2022, China's power battery occupied a 34 percent market share in the EU, Shu noted, citing data from South Korean research agency SNE Research.
Shu noted that China is a major producer and exporter of batteries. And that the EU is a significant export destination for China's lithium batteries and other green energy products, which has made positive contribution to the EU’s green transition. Shu stressed that China hopes the EU uphold the principles of fairness, impartiality and transparency when implementing the new regulations without setting up artificial obstacles and forming new trade barriers.
“Batteries are key to the decarbonization process and the EU's shift towards zero-emission modes of transport,” said Teresa Ribera, Spanish minister for the ecological transition.
The new Batteries Regulation will officially begin implementation on February 18, 2024. The new regulation will require EV batteries entering the market have a "passport" as of January 2027 that will display the products' information, including carbon footprints and recycled content. The new law will ensure that batteries are collected, reused and recycled in the EU.
The regulations establish end-of-life requirements, including collection targets and obligations, targets for the recovery of materials and extended producer responsibility. For instance, it sets target for lithium recovery from waste batteries of 50 percent by the end of 2027 and 80 percent by the end of 2031.
Industry analysts said that Chinese EV battery makers can prepare by 2027 when some requirements specific to the sector take effect. They can try to become more internationalized and competitive with lower-carbon products.
（Picture: Veer）
