A Formal Delay, But Urgency Remains

On July 18, 2025, the Council of the European Union adopted a regulation delaying the due diligence obligations under Regulation (EU) 2023/1542 to August 18, 2027. The change gives companies placing batteries on the EU market two additional years to meet compliance. However, this extension is not a grace period for inaction. For companies in the Battery Energy Storage Systems (BESS) sector, the 2027 date is the final deadline—not the starting point—for having fully implemented and verified due diligence systems.

Under the regulation, companies must be able to demonstrate effective processes for risk identification, mitigation, and traceability across supply chains involving raw materials such as cobalt, lithium, graphite, and nickel. These systems must be independently verified by a notified third-party body before the 2027 deadline.

The postponement, part of the EU’s broader Omnibus IV simplification package, addresses key implementation challenges, particularly delays in designating verification bodies and finalizing recognized due diligence schemes. Still, the compliance expectations remain unchanged—and the time required to meet them remains tight.

What Changes—And What Doesn’t

The regulation originally set due diligence obligations to apply from August 18, 2025. These include:

Establishing due diligence systems for responsible sourcing of battery-relevant raw materials
Independent third-party verification of those systems by a designated conformity assessment body
Public reporting on due diligence practices to ensure transparency and accountability

The new legislation moves the application date to August 18, 2027, aiming to give businesses additional time to prepare while the regulatory infrastructure catches up. However, the nature of the obligations remains the same, and the delay reflects logistical realities—not a softening of enforcement expectations. To assist with implementation, the European Commission is mandated to publish official due diligence guidelines by August 2026, one year ahead of the new deadline.

The Time to Act Is Now

The EU’s decision to delay the enforcement of battery due diligence rules to 2027 provides breathing space—but not a buffer for late action. BESS companies must treat this not as a pause, but as a final window to build, test, and verify the systems needed for full compliance. Given the scale of what’s required, the clock is already ticking.