EU Tightens Rules on Reusing and Recycling Materials

In 2026, new provisions of the EU Batteries Regulation – Regulation (EU) 2023/1542 – come into force in Europe, imposing stricter labelling requirements. A new criterion is the “non-rechargeable” marking, the duration of use. They also set higher collection targets (towards 73% for portable batteries by 2030) and recycling efficiency targets (90% for key metals, 50% for lithium by 31.12.2027), with the aim of promoting the reuse and recycling of materials, transforming the EU market into a model of circular economy.

 

Romania, energy efficiency and AFM-coordinated programs

The President of the Environment Fund Administration (AFM), Florin Banică, emphasizes that investments from the Environment Fund represent for Romania a catalyst for the integration of clean energy and the circular economy. “Transformation of the energy system and transition to a low-carbon economic model require consistent, predictable investments focused on infrastructure with structural impact. The Environment Fund Administration (AFM) manages one of the most important public financing instruments for accelerating these processes, with a portfolio of programs that simultaneously target energy efficiency, renewable energy production, transport electrification, and recycling capacity development.”

A strategic segment is the development of industrial recycling infrastructure, which contributes to both reducing pressure on primary resources and securing critical raw materials used in modern energy technologies.

“Under the Recycling Plants Program, the 2024 session generated 140 applications for 144 industrial facilities, with a cumulative requested value of approximately RON 2.9 billion (≈ EUR 584 million). The financial allocation available through the NRRP is EUR 220 million, and additional projects have been taken over for financing from the Environment Fund budget. The portfolio includes technological flows for plastics, glass, construction and demolition waste, rubber, textiles, as well as facilities for recycling accumulators and batteries, an area directly relevant to energy storage and electric mobility,” the AFM president says.

The integration of these industrial capacities into the energy ecosystem creates the prerequisites for a functioning circular economy, where materials are reintroduced into the production flow and import dependency is reduced.

 

Recycling Factories Program financed from the NRRP

According to a document sent by AFM, between June 14 and November 22, 2024, economic operators were able to register for the Recycling Plants Program financed by the NRRP. The projects submitted are waste management projects that will have a beneficial impact at national level. A total of 140 applications for funding were submitted for 144 plants. The value of the projects requested under the NRRP is RON 2,898,832,568 excluding VAT, equivalent to EUR 583,959,341.67 excluding VAT.

This measure will support specific activities for the construction of recycling facilities for separately collected waste in order to reduce the impact of waste on the environment and the population, to reduce resource consumption in order to promote sustainable economic development in all regions and to achieve the recycling targets in the circular economy package and in accordance with the National Waste Management Plan/county waste management plans and the Bucharest Waste Management Plan.

Under the program, eligible applicants are economic operators authorized to carry out at least one of the following activities: treatment and disposal of non-hazardous waste, treatment and disposal of hazardous waste, recovery of sorted recyclable materials, dismantling of end-of-life machinery and equipment for the recovery of materials, collection of non-hazardous waste, and collection of hazardous waste.

 

EUR 220,000,000 to build recycling facilities

The document specifies that the financial allocation granted through the NRRP for the construction of recycling facilities is EUR 220,000,000, equivalent to RON 1,092,102,000. The maximum eligible amount of state aid granted within a project is EUR 8,400,000 and the minimum eligible amount that can be requested within a project is EUR 500,000, with a maximum regional aid intensity of 75%.

The AFM specifies that projects that do not fall within the allocation of the NRRP targets – components 1 and 3 coordinated by the MMAP – have been taken over for financing from the Environment Fund budget, in accordance with GEO No. 72/2025 on certain measures for the implementation of Romania’s National Recovery and Resilience Plan, as well as for the supplementation of certain normative acts.

“On the energy efficiency component, AFM has contracted through the Public Lighting Program financing of over RON 3.12 billion for 2,466 administrative-territorial units. In addition, the Energy Efficiency in Public Buildings Program aims at thermal rehabilitation and the integration of renewable energy sources,” Florin Banica adds.

 

Photovoltaic Green House Program

The purpose of the program is to finance the purchase and installation of photovoltaic panel systems that use renewable, non-polluting energy sources for the purpose of generating electricity and its use by consumers connected to the national electricity distribution network, as well as the purchase of installations for storing electricity generated from renewable sources.

The aim of the program is to increase energy efficiency, improve air quality, and reduce greenhouse gas emissions by using photovoltaic panel systems with a minimum power of 3 kW to produce the electricity needed for own consumption, storage, and delivery of surplus to the national energy system.

The program was launched in 2019, with each subsequent session benefiting from an improved format, adapted to the economic and technological context, and the registration process was digitized, with simplified procedures.

“One of the most important changes made in 2024 was to increase the amount of financing from RON 20,000 to RON 30,000, to cover not only photovoltaic panels, but also energy storage systems. By introducing the obligation to install storage systems, beneficiaries can enjoy more energy independence and protection against energy price fluctuations,” the head of the AFM notes.

For the program regarding the installation of photovoltaic panel systems for electricity production, with a view to covering consumption needs and delivering the surplus to the national grid, 225,963 funding applications were submitted during the sessions organized by AFM. Under the Photovoltaic Green House Program, the total number of beneficiaries is 184,970 applicants with a total amount of RON 4,310,550,000.

“A pillar of the energy transition is distributed renewable energy production. Through the Photovoltaic Green House Program, more than 225,000 applications have been submitted, with almost 185,000 beneficiaries and total funding exceeding RON 4.3 billion. In the area of electromobility, AFM has contracted about 4,300 recharging stations and supported the purchase of almost 63,000 electric vehicles,” Florin Banica also mentions.

 

Electric vehicle charging infrastructure programs

In order to develop the infrastructure for recharging electric vehicles, programs have been implemented in recent years to promote the expansion of the network of charging stations for electric vehicles for public institutions, in localities, tourist resorts, county capitals, and metropolitan areas, with approximately 4,300 charging stations contracted by AFM, some of which are currently completed or in other stages of execution.

• Charging stations for electric vehicles in county capitals: 32 financing contracts for 229 stations
• Electric vehicle charging stations in towns: 782 financing contracts for 2,794 stations
• Normal power recharging stations: 76 financing contracts for 1,275 stations.

 

Energy Efficiency in Public Buildings Program

This program aims to modernize schools, high schools, and kindergartens, contributing to increased energy efficiency in public buildings while also improving environmental quality by reducing greenhouse gas emissions, lowering annual primary energy consumption, and promoting the use of renewable energy sources.

Between September 20, 2021, and November 19, 2021, a budget of RON 1,400,000,000 has been allocated. The registration was carried out until the threshold of 150% of the total allocated budget was reached, with 870 applications for a total amount of RON 2,100,042,067.35. Under the program, 668 projects were approved for a total amount of RON 1,602,372,249.31, and 601 contracts were signed for a total amount of RON 1,445,609,058.55.

On December 11, 2023, 283 projects were submitted, with a total value of RON 1,203,499,821.41, with registration continuing until the threshold of 200% of the total allocated budget was reached. Top 10 counties that managed to submit the most projects: Bihor – 32, Maramures – 23, Hunedoara – 22, Prahova – 18, Olt – 16, Timis – 16, Dambovita – 13, Iasi – 12, Cluj – 11, Satu-Mare – 10.

 

Batteries, news for 2026

Returning to batteries, 2026 is the year when they become the new standard, especially in photovoltaics. As technology advances and prices fall, more and more consumers are choosing storage solutions to increase their energy independence.

But the automotive industry has also reached a turning point. Conventional lithium-ion batteries have reached their physical limits, and the big players (Toyota, Samsung, QuantumScape, Changan) have chosen different technological routes to offer ranges of over 1,000 km and charging times of under 10 minutes. It’s also worth mentioning that the Chinese are working on a solid-state battery with a range of 1,000 km with a launch in 2026.

The main news for 2026 is labelling (from August 18, 2026), which means portable batteries will have to be clearly marked:

• The phrase “non-chargeable”
• Minimum average duration of use
• Standardized separate collection symbol.

In terms of collection targets, they are:

• Portable batteries: 45% (2023) – will reach 63% in 2027.
• Batteries for electric vehicles (EV) and those for energy storage systems (ESS) will have specific targets, with the introduction of mandatory use of recovered materials (starting August 18, 2028).

If we look at the long-term impact (after 2026), we need to consider recycling efficiency, more precisely by the end of 2027.

Rules on minimum recycled content (starting August 18, 2031): 16% cobalt in industrial, SLI, and electric vehicle batteries; 85% lead; 6% lithium; 6% nickel.

Batteries should be easy to remove, change and recycle. Portable batteries must be sealed, weigh no more than 5 kg and be easy to remove with simple tools. The European Commission will review recycling targets every five years, starting in 2026. The EU Batteries Regulation looks at the entire lifetime of a battery.

Companies must follow strict rules to ensure that battery materials are safe. The process of a battery is tracked from the moment of manufacture to the moment of recycling.

Circular economy: The Batteries Regulation aims to create a circular economy for the battery sector, covering all stages of the battery life cycle, from design to waste treatment. This initiative is of major importance, especially given the massive development of electric mobility. Demand for batteries is expected to increase more than tenfold by 2030. Repeal of the old directive: Directive 2006/66/EC will be repealed in 2027 with the full implementation of the new regulation.

Therefore, 2026 marks an intensification of EU rules to make batteries more durable, easier to recycle, and to stimulate the market to become more sustainable. The new law covers several parts of a battery’s lifespan, tightens battery design rules. Batteries need to be safer and easier to recycle, and stricter rules must be enforced for battery manufacturing, labelling, use and recycling. The law applies immediately in every EU country. It is not expected that each country will establish its own rules. Everyone follows the same rules at the same time. The law covers several types of batteries, such as those in electric vehicles and light transportation. The provenance of battery materials should also be tracked.

 

After 2026, the EU wants to tighten the rules even further

For example, Extended Producer Responsibility (EPR) will mean that companies must take care of batteries from start to finish. The carbon footprint of each battery will have to be reported and digital passports for batteries will be used more. A code will be scanned to find out about the battery’s lifespan and what it is made of. There will be stricter due diligence rules that will restore confidence in the provenance of battery materials. The EU will check batteries for more hazardous substances, which will mean safer products.

By August 2027, batteries will have new labels. These labels will display safety and recycling information.

From February 2027, battery information will be received via a Digital Product Passport.

 

Battery recycling facing difficulties in Europe

While China is benefiting from the choices it has made over the last twenty years, Europe is suffering the full consequences of its deindustrialization. Europe has been relocating factories and shedding manufacturing jobs since the late 1980s.

Despite the entry into force of the EU regulation, battery recycling is struggling to gain a foothold due to the lack of an industrial sector. Contributing factors include uncertainty over the supply of spent batteries and the switch to lithium-iron-phosphate (LFP) chemistry. The EU Batteries Regulation notably extends the recycling obligation to batteries weighing more than 5 kg, such as those used in electric vehicles.

Key targets include reducing the carbon footprint, using fewer virgin raw materials and increasing the recovery of recycled materials (e.g. cobalt, lithium). But it is market realities rather than technological problems that are holding back the development of the battery recycling sector in Europe.

“The investments required for recycling facilities amount to several hundred million euros, so investors need to know whether the facilities will operate long enough to be profitable,” Stéphane Bourg, Director of the French Observatory of Mineral Resources for Industrial Sectors, emphasizes.

 

European countries and initiatives

Finland: Hosts the largest hydrometallurgical recycling plant in Europe (Fortum in Harjavalta).

France: Has key players (Batribox) and is developing production (gigafactories) and recycling capacities to secure its sector. In June 2025, French startup Battri opened its first electric vehicle battery recycling plant near Arras (Pas-de-Calais). With an initial processing capacity of 15,000 tons, the company plans to recycle up to 35,000 tons of waste per year.

Italy – the first and only plant in Europe capable of handling all stages of recycling: A revolutionary recycling plant has recently opened in Italy. Thanks to a partnership between Reinova, A&C Ecotech and BTS & Saker, the Italians inaugurated a completely new plant in the Modena region in January 2026. This battery recycling center promises to process 99.6% of the critical materials that make up batteries. Giuseppe Corcione, CEO of Reinova, is delighted with the completion of this project. “We are proud to have made possible what many thought possible in just ten years. We designed and developed a facility that is not just a storage centre, but a true value creator.” This is the first and only plant in Europe capable of handling all stages of recycling. The new recycling plant handles the sorting, shredding and separation of materials. The unit processes LFP (lithium-iron phosphate) and NMC (nickel-cobalt-manganese) batteries, which together account for 98% of Europe’s vehicle fleet. Once recycled, the materials are put back into the production chain. Rare metals such as lithium and cobalt are extracted from cells for sorting.

According to Italian media, the annual capacity of the plant is 12,000 tons. Giuseppe Corcione confirms that the site can collect batteries from all over Europe. He also points out that the new centre already meets the latest European standards for battery traceability.

These countries are leading the way on recycling now and in the future, but all EU Member States need to meet their recycled content obligations (2028) and energy performance targets for the recycling of electric vehicle batteries (2027).

As for detailed statistics for 2025 on battery recycling in Europe, these are not yet final, but the EU has set ambitious recycling targets (e.g., 55% of municipal waste, 65% of packaging) following the adoption of a new Batteries Regulation in 2023. The regulation increases pressure to recover valuable materials, against a backdrop of anticipated exponential growth in demand, highlighting the importance of national recycling systems, such as SNRB in Romania, in achieving these objectives.