British businesses face being locked out of the EU market after the government admitted that no spending had been allocated to warn them about strict new export rules.
From February 2027, electric vehicle batteries, industrial batteries over 2kWh, and batteries used in light means of transport (such as e-bikes and e-scooters) will require a digital battery passport to be sold in the EU.
But a series of Freedom of Information (FOI) requests has uncovered a stark lack of preparation in Whitehall.
Industry experts are now warning that some businesses will face a “closed door” if they don’t prepare themselves immediately for the sweeping new laws.
Ken Davies, Chief Commercial Officer at Manchester-based DigiProd Pass, which manages battery passport introductions for global clients, said: “The clock is ticking very loudly for UK businesses that are deemed to be ‘economic operators’ in the context of battery passports.
“They simply won’t be able to sell products in the EU from February 2027 without a system in place, and as that requires integration with their existing systems, it’s not an overnight fix.
“Alarmingly, awareness levels outside the EU remain surprisingly low. This data shows an extremely worrying picture as we see very little government action to raise awareness or support UK businesses that are affected by this transition.”
The Department for Business and Trade (DBT) – which has since changed its name to the Department for Business, Innovation, Science and Trade – said in its FOI response that it “has not issued dedicated guidance” on the EU battery passport requirements.
It also confirmed it holds no records of any webinars, briefings, or newsletters to warn UK businesses about the looming deadline, and confessed to having not spent a single penny outside of staffing costs to raise awareness.
The passport will act as a digital twin, giving customs authorities precise data on the battery’s materials, sustainability, and recyclability.
For businesses that are deemed by EU authorities to be ‘economic operators’, this represents a completely new set of regulations to comply with and a new battery passport system to introduce.
This is the first mandatory introduction of Digital Product Passport (DPP) schemes, which are expected to affect most product categories in the EU over the next few years.
Davies, who also serves as the Programme Director of the EU Battery Passport Conference, added: “It is surprising, at a time when the government is seeking a closer relationship with the EU, that these regulations, which will affect many industries in the next few years, are not being discussed with more urgency.”
The battery passport system is part of a wider EU consumer strategy aimed at improving second-life usage by introducing digital product passports across many sectors in the next few years. Construction materials, textiles, furniture, and consumer electronics are also in line for mandatory DPP adoption before 2030.
Davies continued: “People may not even realise they classify as an ‘economic operator’ under the new rules. It’s important to remember: it’s the business that introduces the battery into the EU market that has responsibility for the DPP system. That can be any company using batteries in their products, from car manufacturers to drones, and from materials handling to e-bikes.
“Affected businesses need to be developing a strategy for deployment immediately as we are already seeing the door to the European market starting to close.
“Battery passport systems require integration with existing business systems as they capture dynamic data on the whole life cycle of a battery, including in use. So whilst the implementation can be very streamlined, it takes time to get data aligned.”
Alex Lupu, director of ALTechnologies, has been exporting batteries into Europe for the last seven years but has received no communication about the incoming laws from the government.
Speaking about the lack of guidance from the DBT, the 40-year-old said: “It is disappointing. We pay taxes, whether we want to or not – they will come and put their hands in our pockets and take out taxes no matter what.
“We pay so much tax that at times it feels like we’re paying tax on tax, but when it comes to being informed by the government about changes as drastic as this – nothing.
“We get sent emails and letters about collecting taxes; the same energy should be used to keep us fully informed about all the new changes well in advance.”
Lupu, who founded the business in 2019, continued: “I feel let down because I didn’t know anything about this. Now I have just three months to try and learn more about these regulations and adapt to them to hopefully carry on trading in the EU.
“Roughly five per cent of our sales come from exports to Europe – it will not be good. It will definitely become much more difficult to expand my business, especially in the EU.
“For now, I need to go away and understand exactly what these new rules are and how I need to adapt so I can continue exporting, because the government hasn’t informed me of anything.”
Veteran Warwick Batteries company director Mark Moore, who has been highly critical of the move, sells batteries for combustion engines and leisure facilities. Despite the wide-reaching implications of the incoming EU digital passport rules, he was also completely unaware of the looming deadline before being contacted.
“The government hasn’t come to me with anything. I was unaware of it,” he said. “If we did do those kinds of batteries, no, the UK government hasn’t been in touch. I would be surprised if they’ve been in touch with anyone on that matter.
“I don’t think the government is helping small businesses in any way, shape or form – if anything, they’re doing the exact opposite. They’re giving businesses an absolute kicking with all the extra constant taxation.
“Anything that wraps up a process in red tape and makes it more difficult to trade is not good for any economy. Anything that makes business more difficult is going to bring more cost to a business, which is getting out of hand for everyone these days, and ultimately makes the end product far more expensive for the end user.”
Moore added: “In my view, it’s just a protectionist digital passport that makes it more difficult for people to send their manufactured products into the EU. It means anybody producing within the EU has kind of got a shield against business outside.”
While his business may avoid the immediate February 2027 deadline by not exporting EV batteries, Moore warned that the scope of such regulations inevitably expands.
He cautioned that once authorities get on the bandwagon, the rules will likely be rolled out to all products, leaving ordinary businesses and consumers to ultimately “pick up the bill”.
With business owners now forced into a last-minute scramble to figure out the complex regulations on their own, experts fear unknowing UK firms will soon be hit with a huge compliance backlog at the border.
This lack of targeted outreach is compounded by the FOI findings, which also revealed a fragmented approach across government departments.
The Cabinet Office, the Department for Transport, the Department for Energy Security & Net Zero, and UK Research and Innovation all confirmed they held no information on the issue.
While not all of those departments would be expected to lead on battery passport policy, the responses show that activity is concentrated within only a small number of Whitehall departments. Instead, they forwarded the requests to the DBT and the Department for Environment, Food & Rural Affairs.
The DBT said its engagement has focused strictly on “evidence gathering” while EU implementation requirements develop. It pointed to a public survey that screened just 180 relevant respondents, an ongoing call for evidence, and a single meeting with the Society of Motor Manufacturers and Traders.
Davies added: “Whatever our thoughts on policy direction, this will be a legal requirement from February that economic operators in the battery ecosystem cannot afford to ignore without risking complete exclusion from the EU market.
“Businesses certainly cannot wait for official government guidance that doesn’t exist. Delay risks total exclusion from their EU customer base.
“For companies affected by the battery passport system, the alarm bells should be sounding very loudly. Meanwhile, for those companies that are likely to be affected by the next round of Digital Product Passports in industries such as construction materials or textiles, it’s the perfect opportunity to get ahead of the incoming regulations.”
