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These ASX battery companies are well-placed to meet stricter European regulations

• GM has pledged to end production of carbon emitting vehicles by 2035

The European Union has raised its targets for battery waste recovery to 65 per cent by 2025, and to a level of 70 per cent by 2030.

“The stricter regulations demonstrate Europe’s intention to improve sustainability across the lithium-ion battery life cycle and encourage EV and battery manufacturers to contribute towards a climate neutral economy through greater battery recycling,” said the company.

Meanwhile, in an important development for the EV sector, US carmaker General Motors has announced its plans tophase out production of diesel and petrol cars and trucks by 2035.

GM’s sudden shift comes only days after the inauguration of President Joe Biden who has pledged to boost sales of EVs, including purchases by the US government.

“General Motors is joining governments and companies around the globe working to establish a safer, greener and better world,” said GM chairman and chief executive, Mary Barra.

Talga Group in line to benefit from stricter European regulatory environment

Another ASX battery sector company,Talga Group (ASX:TLG)also noted the tighter regulatory environment in the European Union for battery anode manufacturers from which it is positioned to benefit.

“In Europe, the moves to introduce a battery materials ‘passport’ requiring stricter emissions regulations on imported battery materials, and growing financial and regulatory support for local manufacturers supports Talga’s plans,” said managing director, Mark Thompson.

“We are also glad to see the increased realisation of these factors in capital markets, with newly economic, social and governance funds rotating out of fossil fuel investments towards sustainable transport and battery materials,” said Thompson.

Talga Group is developing an integrated battery anode production plant in Sweden for anode products and lithium-ion batteries.

The company said 24 battery megafactories are planned for Europe over the coming years and include facilities operated by Tesla, Volkswagen and Panasonic.

The two dozen plants will have a combined production capacity for battery anode of 600,000 to 700,000 tonnes per year, enough to equip 9 million to 10 million EVs per year.

Two dozen mega factories producing anode batteries are planned for Europe. Image: Talga Group from Roland Zenn at Farasis Energy.

These ASX battery companies are well-placed to meet stricter European regulations - *