The proposals are part of the broader “omnibus” initiative and would postpone due diligence obligations and introduce a “small mid-cap” category for in-scope companies.

By Paul A. Davies, Michael D. Green, James Bee, and Toon Dictus

On 21 May 2025, the European Commission (Commission) published two proposals affecting the timeline and scope of the Regulation concerning batteries and waste batteries (the Batteries Regulation, or EUBR), aimed at streamlining compliance and providing clarity for economic operators within the batteries sector. Below we outline the background to the EUBR, the amendments proposed by the Commission, and their impacts.

Background to the EUBR

The EUBR is aimed at making batteries more sustainable, safe, and circular across their entire life cycle. Adopted in 2023, the EUBR introduces rules for battery design, production, and end-of-life management — covering a range of batteries, from electric vehicle batteries to those incorporated in everyday devices. As part of the EU’s broader Green Deal and circular economy agenda, the EUBR seeks to reduce environmental impact, improve supply chain transparency, and support the transition to cleaner energy technologies. The EUBR imposes obligations on a broad set of economic operators, including manufacturers, importers, distributors, (distance) sellers, and online platforms. The various sets of rules under the framework set out in the EUBR follow separate phased-in application dates, with the first set having started to apply from February 2024.

Delay of Due Diligence Obligations

One of the specific new obligations introduced by the EUBR for economic operators selling batteries in the EU is the mandatory adoption of battery due diligence policies concerning certain raw materials (cobalt, natural graphite, lithium, and nickel) and associated human rights and environmental risks. The first Commission proposal recommends postponing these due diligence obligations by two years, shifting the application date from August 2025 to August 2027.

The delay is intended to offer additional preparation time for economic operators and facilitate the designation of notified bodies responsible for third-party verification. Under the EUBR, economic operators are required to have their battery due diligence policies verified by a third party. At the time of the publication of its proposals, the Commission outlined that approximately half of the Member States have appointed a notifying authority responsible for assessing, notifying, and monitoring third-party verification bodies, thereby necessitating the delay.

Furthermore, the publication of due diligence guidelines would also be rescheduled to 26 July 2026, to align timing with Commission’s updated timing for adoption of diligence guidelines under the Corporate Sustainability Due Diligence Directive (CSDDD). For further detail on the proposed update timeliness regarding CSDDD, see this blog post. The Commission intends to prepare the two sets of guidelines hand-in-hand, stating this will ease the burden placed on economic operators.

Importantly, this proposed delay would not affect other EUBR obligations, such as those related to labelling, waste battery management, and extended producer responsibility (EPR).

Small Mid-Cap Category Proposal

The second proposal made by the Commission would introduce a new category of companies termed “small mid-caps” (SMCs). In relation to the EUBR in particular, the Commission proposes to extend certain exemptions currently applicable to small and medium-sized enterprises under the EUBR to this new, larger category of SMCs. Under this proposal, battery due diligence policies would not apply to economic operators with a yearly net turnover below €150 million, provided they are not part of a group exceeding this threshold on a consolidated basis. Notably, the SMC category does not impose employee or balance sheet thresholds, thereby distinguishing it from many other EU regulatory thresholds.

Additionally, the Commission proposes that all economic operators review and publish a report on their battery due diligence policy every three years, rather than annually.

Broader Implications and Next Steps

These proposals are part of the Commission’s broader “omnibus” simplification initiatives (which affects various regulations, including the Corporate Sustainability Reporting Directive (CSRD), the CSDDD, the Carbon Border Adjustment Mechanism (CBAM), and the EU Deforestation Regulation (EUDR)) and thus form part of a wider simplification effort pursued by the EU, consistent with the EU’s Competitive Compass. For further details on the “omnibus” initiatives and the impact on those frameworks, see this blog post.

While not amending the substantive rules of the EUBR, the proposals aim to provide economic operators more time to prepare, and to resolve difficulties with the availability of notified bodies. The proposals must now be adopted by both the European Parliament and the Council to take effect.

Latham & Watkins will continue to provide further updates as the regulatory landscape evolves.

This article was prepared with the assistance of Ronan Foley at Latham & Watkins.