| Requirement | Mandatory Compliance Date | EU 2023/1542 Article Ref. | Applicable Battery Categories |
| Due Diligence | Aug 18, 2025 | Art. 47-53 | Manufacturers, Importers, Distributors, with Net Turnover ≥ EUR 40 Million, except Re-used Batteries. |
Article 48 Due diligence policies
| Who | · Direct-to-Consumer Manufacturers(Cross-border E-commerce) · Importers · OEM / White-Label Distributors |
| Third-party verification | Audited by Notified Body |
| 10-Year Document Retention | ·Article 49 Economic operator’s management system ·Article 50 Risk management obligations ·Article 51 Third-party verification report and audit report. ·Article 52 Disclosure of information on battery due diligence policies |
Article 49 Economic operator’s management system
| Section | Legal Reference | Compliance Category | Core Obligation / Action Required | Practical Implications & Details |
| Part 1: Management System Setup | (a) | Policy Publicization | Adopt & Communicate Policy | Must formally adopt a due diligence policy covering Annex X 1.materials/2.risks. Must be publicly accessible and officially communicated to all suppliers. |
| (b) | Standard Alignment | Align with International Standards | Must strictly align with internationally recognised instruments listed in Annex X. | |
| (c) | Governance & Archiving | Top Management Oversight & 10-Year Record Retention | The company’s C-level/Top Management must be assigned direct responsibility. All due diligence records must be securely archived for a minimum of 10 years. | |
| (d) | Traceability | Establish a Chain of Custody System | Must operate a robust traceability system capable of mapping and identifying all upstream actors in the supply chain. | |
| (e) | Contractual Binding | Embed Policy into Supplier Contracts | Due diligence requirements and risk management measures must be legally integrated into B2B purchasing contracts and supplier agreements. | |
| (f) | Whistleblower System | Establish a Grievance Mechanism | Must set up an early-warning and remediation channel (aligned with UN principles) allowing stakeholders to report supply chain abuses, potentially using third-party ombudsmen. | |
| Part 2: Mandatory Traceability Data (Supporting 1d) | (a) | Material Specs | Raw Material Identification | Must provide a clear description of the raw material, including its specific trade name and type. |
| (b) | Supplier Identity | Direct Supplier Information | Must document the exact name and registered address of the immediate supplier who sold the material to the economic operator. | |
| (c) | Origin & Transaction History | Full Chain Tracking (Mine to Factory) | Crucial: Must document the Country of Origin and every single market transaction from the initial mineral extraction (mine) down to the immediate supplier. | |
| (d) | BOM Transparency | Exact Quantities in Battery | Must declare the precise amount of the restricted raw materials present in the battery, expressed as a percentage (%) or in weight. | |
| (e) | Official Audit | Third-Party Verification Reports | Must obtain and provide official audit reports issued by an EU-recognised “Notified Body” concerning the upstream suppliers. | |
| (f) | High-Risk Minerals Data | Extreme Transparency for Conflict Areas | If audit reports are missing and materials come from conflict/high-risk areas, companies must provide granular OECD-level data: specific mine of origin, processing locations, and taxes/royalties paid. |
Article 50 Risk management obligations
| Section | Legal Reference | Compliance Category | Core Obligation / Action Required | Practical Implications & Details |
| Part 1: Risk Identification & Strategy | 1(a) | Risk Assessment | Identify & Assess Risks | Must identify and assess adverse impacts in the supply chain related to Annex X risks, utilising public information or data provided by stakeholders. |
| 1(b)(i) | Internal Reporting | Report to Top Management | Must report the findings of the risk assessment directly to the assigned top management level. | |
| 1(b)(ii) | Supply Chain Intervention | Adopt Measures & Exert Pressure | Must adopt internationally recognised risk management measures and exert pressure on suppliers, including their subsidiaries and subcontractors, to prevent or mitigate identified risks. | |
| 1(b)(iii) | Remediation & Penalties | Implement Plan & Consider Termination | Must design a risk management plan, track its performance, and report back to top management. Must consider suspending or entirely discontinuing engagement with a supplier if mitigation attempts fail. | |
| 1(b)(iv) | Continuous Monitoring | Undertake Additional Assessments | Must carry out additional fact and risk assessments when circumstances change or when risks require further mitigation. | |
| Part 2: Stakeholder Engagement | / | Consultation | Consult External Stakeholders | If continuing or temporarily suspending trade during risk mitigation, the company must consult with suppliers, local/national governments, NGOs, and affected third parties (like local communities) before finalising the mitigation strategy. |
| Part 3: Verification & Probability | / | Third-Party Audits | Assess Probability & Verify Compliance | Must identify the probability of adverse impacts in the supply chain. The operator must carry out third-party verifications via a notified body or utilise valid third-party verification reports provided by their suppliers. |
| Part 4: Final Reporting & Execution | / | Executive Oversight | Final Management Reporting & Execution | Must report the findings from the probability/verification risk assessment (from Part 3) to top management and fully implement the risk response strategy. |
Article 51 Third-party(Notified Body) verification of battery due diligence policies
| Section | Legal Reference | Compliance Category | Core Obligation / Action Required | Practical Implications & Details |
| Part 1: Verification Scope & Objectives | 1(a) (b) | Audit Scope | Cover All Systems & Determine Conformity | The notified body must audit all activities, processes, and systems to ensure the company’s due diligence practices strictly conform with Articles 49, 50, and 52. |
| 1(c) | Stakeholder Engagement | Check Undertakings & Gather External Info | Auditors are mandated to perform checks and independently gather information directly from stakeholders (e.g., workers, NGOs, local communities), rather than relying solely on management reports. | |
| 1(d) | Continuous Improvement | Identify Areas for Improvement | The audit is not merely pass/fail; the notified body must explicitly identify and document areas where the economic operator can improve their due diligence practices. | |
| 1(e) | Audit Integrity | Respect OECD Audit Principles | The notified body must maintain strict independence, competence, and accountability as defined by the OECD Due Diligence Guidance for conflict-affected and high-risk areas. | |
| Part 2: Audit Outcomes & Decisions | / | Final Reporting & Certification | Issue Verification Report & Approval Decision | The notified body must issue a detailed verification report recording all audit activities and outcomes. If the company fulfills all obligations laid down in Articles 49, 50, and 52, the auditor will issue a formal “approval decision” (the compliance green light). |
Article 52 Disclosure of information on battery due diligence policies
| Section | Compliance Category | Core Obligation / Action Required | Practical Implications & Details |
| Part 1: Official Enforcement | Government Disclosure | Disclose to Authorities | Must provide the verification report, approval decision, audit reports, and compliance evidence to Member States’ market surveillance or national authorities upon request. |
| Part 2: B2B Transparency | Downstream Disclosure | Share Information with Buyers | Must make all relevant due diligence information available to immediate downstream purchasers. This sharing is conducted with due regard for business confidentiality and other competitive concerns (e.g., protecting core supplier identities). |
| Part 3: Public Transparency | Annual Public Report | Publish Annual Public Report | Must annually review and make publicly available (including on the internet) a report on its battery due diligence policy. The report must be easily comprehensible for end-users and clearly identify the batteries concerned. |
| Incident & Audit Disclosure | Disclose Adverse Impacts & Audit Details | The public report must detail findings of significant adverse impacts in the supply chain and explain how they were addressed. It must also include a summary of third-party verifications and the name of the notified body, while respecting business confidentiality. | |
| Part 4: Recycled Materials | Recycled Sourcing Disclosure | Disclose Recycled Sources | If Annex X raw materials present in the battery are derived from recycled sources, the economic operator must publicly disclose its conclusions in reasonable detail, with due regard for business confidentiality. |
Article 53 Recognition of due diligence schemes
Not applicable to manufacturers
ANNEX X: LIST OF RAW MATERIALS AND RISK CATEGORIES
| Main Category | Sub-Category | Specific Item / Detail |
| 1. Raw materials | (a) | cobalt |
| (b) | natural graphite | |
| (c) | lithium | |
| (d) | nickel | |
| (e) | chemical compounds based on the raw materials listed in points (a) to (d). | |
| 2. Social and environmental risk categories | (a) environment, climate and human health, considering direct, induced, indirect and cumulative effects, including: | (i) air, including air pollution such as greenhouse gas emissions |
| (ii) water, including seabed and marine environment, and including water pollution, water use, water quantities (flooding or droughts) and access to water | ||
| (iii) soil, including soil pollution, soil erosion, land use and land degradation | ||
| (iv) biodiversity, including damage to habitats, wildlife, flora and ecosystems, including ecosystem services | ||
| (v) hazardous substances | ||
| (vi) noise and vibration | ||
| (vii) plant safety | ||
| (viii) energy use | ||
| (ix) waste and residues | ||
| (b) human rights, labour rights and industrial relations, including: | (i) occupational health and safety | |
| (ii) child labour | ||
| (iii) forced labour | ||
| (iv) discrimination | ||
| (v) trade union freedoms | ||
| (c) community life, including that of indigenous peoples | ||
| 3. The international instruments covering the risks referred to social and environmental risk include: | (a) | the Ten Principles of the United Nations Global Compact |
| (b) | the UNEP Guidelines for Social Life Cycle Assessment of Products | |
| (c) | the Convention on Biological Diversity, in particular Decision COP VIII/28 – Voluntary guidelines on Biodiversity-Inclusive impact assessment | |
| (d) | the UN Paris Agreement | |
| (e) | the eight fundamental ILO Conventions as defined under the ILO Declaration on Fundamental Principles and Rights at Work | |
| (f) | any other international environmental conventions that are binding upon the Union or its Member States | |
| (g) | the ILO Declaration on Fundamental Principles and Rights at Work | |
| (h) | the International Bill of Human Rights, including the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights | |
| 4. The internationally recognised due diligence instruments applicable to the due diligence requirements laid down in Chapter VII of this Regulation: | (a) | the International Bill of Human Rights, including the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights |
| (b) | the UN Guiding Principles on Business and Human Rights | |
| (c) | the OECD Guidelines for Multinational Enterprises | |
| (d) | the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy | |
| (e) | the OECD Due Diligence Guidance for Responsible Business Conduct | |
| (f) | the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas |