European Union to Introduce New Reporting Requirements for Cobalt & Neodymium

European Union to Introduce New Reporting Requirements for Cobalt & Neodymium

In recent years, governments around the world have shown a growing interest in the responsible sourcing of raw materials — specifically, how the sourcing of critical minerals, such as in the production of electronics, impacts economies when supply and demand fluctuate.

The European Union (EU) has drafted a law that, when published, may affect the certification and approvals on electronics for the EU market. Based in part on findings from a report published in 2016, the new requirements hope to address the increased demand for cobalt and neodymium, and the potential business continuity risk if the supply of these minerals is disturbed and costs soar.

When the legislation comes into effect, companies will be required to report on the presence of cobalt and neodymium in all server and online data storage products by March 2, 2020.

Companies will need to provide information on the indicative weight range (less than 5 grams, between 5 grams and 25 grams, above 25 grams), at the component level, of cobalt in batteries and neodymium in HDDs.

Are you prepared for the global shift to responsible mineral sourcing? Learn more in our guide, Responsible Mineral Reporting in 2020 & Beyond.

The legislation comes as the industry is beginning to consider cobalt a de facto conflict mineral. Going forward, this will be a requirement for product certification. Failure to report could impact approvals for the EU market.

Though this initial draft of the law focuses on critical and raw materials in servers and online data storage products, it is likely just the beginning for declaration requirements surrounding cobalt and neodymium.

As the deadline approaches, it is imperative that companies proactively collect the necessary data to prevent delays in approvals for the EU market. A comprehensive supply chain data management solution can help companies stay on top of changes in reporting requirements, ensuring continued market access when new requirements are put into place.

With Assent’s Cobalt Module, companies can accept data from their suppliers in a format that aligns with the Cobalt Reporting Template (CRT), helping them achieve complete visibility into their products’ composition.

To learn more about how Assent can support your responsible minerals program, contact