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.
OECD Due Diligence Guidance
Meaning
International standards for corporate risk management provide companies with structured frameworks to avoid contributing to conflict or human rights abuses through their mineral purchasing practices. The oecd due diligence guidance establishes a five-step process that applies to the sourcing of cobalt, lithium, and other critical battery metals. This guidance applies to all tiers of the supply chain from miners to final brand owners.
It does not replace national import laws but acts as the global benchmark for responsible sourcing regulations.
Framework Component
A structured five-step framework defines the implementation of these sourcing protocols. Sourcing departments apply the oecd due diligence guidance by establishing strong company management systems, identifying risks, and designing strategies to respond to found issues. They must also arrange for independent audits of smelters and report their progress annually.
This approach creates a transparent procurement path.
Supplier Auditing
Audit procedures are focused on refiners and smelters because they represent the key pinch point in the mineral supply chain. Sourcing managers require their suppliers to buy metals only from refiners that have been certified through audits that follow these guidelines. This ensures that the raw materials used in the cells are free from conflict financing.
Sourcing Standard
Adhering to these principles is essential for companies that want to maintain access to major global markets. This alignment ensures compliance with upcoming regulatory demands in both Europe and North America.