Determining Importer Liability under European Union Battery Regulations
EU Regulation 2023/1542 holds the first European entity taking title to imported batteries legally liable for all safety, carbon footprint, and passport duties.
Due Diligence Policies
Meaning
Corporate risk management frameworks designed to identify and address social and environmental hazards in the supply chain form the foundation of responsible mineral procurement. Sourcing departments implement due diligence policies to trace the path of raw materials from the extraction site to the final assembly plant. These systems target issues like human rights abuses and local environmental damage during mineral extraction.
They do not replace national laws but act as a corporate governance layer.
Supplier Evaluation
Formal assessment protocols allow buyers to screen mineral producers against international standards before entering into supply contracts. By embedding due diligence policies into supplier agreements, companies can demand audits of smelting facilities and refinery locations. This process helps buyers detect risks before materials are integrated into cell production.
Procurement teams use these evaluations to select clean partners.
Actionable Mitigation
Risk mitigation strategies must be applied when audits uncover problems at an upstream extraction site. Sourcing agreements governed by due diligence policies require that suppliers correct any found infractions within a specified timeframe. If a supplier fails to resolve the issues, the buyer must suspend or terminate the sourcing contract to protect its compliance standing.
This action prevents the purchase of tainted materials.
Public Disclosure
Annual performance reports must be published to prove the effectiveness of these corporate monitoring schemes. This reporting obligation ensures that the public can verify that the company is actively preventing exploitation in its supply chain.