Analyst Insight: The European Union’s strict sustainability laws are already reshaping the battery industry, and electric vehicle truck makers will soon face the same regulatory storm. Those who act now by learning from the battery sector and embracing transparency, carbon tracking, and sustainable sourcing can avoid regulatory headaches, and position themselves as leaders in the shift toward green transportation.

The electric truck industry is bracing for a regulatory storm. The battery sector is already engulfed in it. As the EU tightens its sustainability laws, battery makers are facing some of the strictest rules yet – rules that will soon apply to EV manufacturers and their entire supply chain.

For companies making EV trucks, the battery industry serves as a warning and a guidebook rolled into one. The EU's new regulations demand full transparency on everything from where materials come from to how much carbon is used in production. The lessons battery makers are learning now will soon be crucial for truck manufacturers and others in the clean energy sector.

The Canary in the Coalmine

The EU’s sustainability push is built on four major legislative acts: the Corporate Sustainability Reporting Directive (CSRD), which forces companies to disclose their environmental and social impacts; the Corporate Sustainability Due Diligence Directive (CSDDD), which makes businesses responsible for ethical sourcing and sustainability in their supply chains; the EU Taxonomy, which defines what qualifies as a “green” investment; and the Carbon Border Adjustment Mechanism (CBAM), a policy tool designed to ensure a level playing field for domestic and imported carbon-intensive goods, thereby preventing carbon leakage and encouraging cleaner industrial production in countries outside the EU.

The battery sector is already dealing with these rules because of the EU Battery Regulation, which was passed in December, 2022. It covers nearly every aspect of sustainability, from recycling targets to carbon footprint limits. For EV truck manufacturers, these rules will have direct consequences, since batteries are one of the most critical (and costly) components of electric vehicles. Understanding how battery makers are adapting can give truck manufacturers a head start in preparing for their own compliance challenges.

Lessons From the Battery Sector

By 2026, all batteries sold in the EU must carry labels detailing their durability, composition, and performance. By 2027, this will expand into battery passports, digital records tracking every battery’s materials, carbon footprint and compliance status.

This means that if you manufacture or sell electric trucks, you will need to prove exactly where your batteries come from, and what impact they have on the environment. Future regulations will likely require similar tracking for entire vehicles, meaning full transparency on every component.

As of 2025, battery manufacturers must follow strict supply chain due-diligence laws. They must prove that materials such as lithium, nickel, and cobalt come from ethical and environmentally responsible sources, aligning with OECD guidelines on responsible business conduct.

The CSDDD will extend these sourcing rules beyond batteries to all large companies in the EU by 2027. If you use batteries in your trucks, you will need to ensure that they come from compliant suppliers, or risk penalties.

Starting in 2025, electric vehicle battery makers must also calculate and report their product carbon footprints (PCFs), covering emissions from production, use and disposal. Soon after, the EU will ban the sale of batteries that exceed carbon limits. EV truck makers will likely face similar carbon footprint rules for entire vehicles, not just batteries. Companies that fail to reduce emissions in production may struggle to sell in the EU.

Many of the requirements of the EU Battery Regulation will become steadily more aggressive. By 2030, batteries must contain at least 12% recycled cobalt, 4% recycled lithium, and 4% recycled nickel. By 2035, the targets will rise even further, mandating that companies recover 95% of the key materials from old batteries. At the same time, imported battery precursors such as lithium hydroxide, and raw materials such as aluminum, may become less affordable due to the effect of CBAM.

Truck makers will therefore be expected to use more recycled materials in their vehicles, especially in battery production, and recycling and end-of-life battery management will become critical factors in the meeting of sustainability goals.

How to Get Ahead

The EU isn’t just regulating. It’s also funding innovation to help various industries meet these goals. Programs such as the European Battery Alliance and Horizon Europe are providing financial support for cleaner, more sustainable battery technology development. Companies that proactively align with EU sustainability goals can position themselves as industry leaders and gain access to green financing. Conversely, those that don’t consider these aspects could be caught out, either by regulatory action or by unexpected cost increases, such as the need to purchase CBAM certificates that reflect the price of carbon in the EU.

Embracing digital transparency is therefore crucial. Start tracking your supply chain data now, and work with suppliers who are already preparing for battery passports and digital tracking requirements. Equally, invest in tools that measure and reduce carbon emissions involved in production — meeting future carbon limits will require major increases in efficiency. Look for ways to integrate recycled metals and sustainable materials into production before 2030. And remember: What are battery rules today will become EV truck rules tomorrow. Stay ahead of the changes and use early compliance to gain an edge on your rivals.

Electric trucks are a key part of the EU’s plan for a carbon-neutral economy. To make that a reality, Europe is going long on batteries. The EU has already backed gigafactories, battery recycling plants, and green manufacturing initiatives. The companies that align with these goals early will have a significant advantage.

The lessons from the battery industry are plain: Strict rules are coming, but they also bring opportunities. EV truck makers that prepare now — by embracing transparency, slashing carbon emissions, and using sustainable materials wherever possible — can avoid these regulatory headaches and position themselves as leaders in the inevitable shift towards green transportation.

The future of electric trucking is being written in the battery industry today.