Batteries are identified as a key product value chain, not only for the transition to climate neutrality but also for the European Union’s (EU) transition towards a circular economy (CE). Therefore, the EU has the ambition to create an ecosystem for sustainable batteries that follows a CE approach. As part of this effort, the EU has reviewed and revised the legislation governing the life cycle of batteries: EU chemicals, product and waste legislation. A recent example is the adoption of the Batteries Regulation, which is the first comprehensive legal framework focusing on the entire life cycle of a specific product. The Regulation removes many barriers and introduces incentives to support the transition towards a more circular battery value chain, as identified in this article through both literature and stakeholder interviews in the Netherlands. Compared to the Batteries Directive, the Batteries Regulation appears to better align with and contribute more effectively to CE objectives. Yet, this article also identifies some remaining challenges and suggestions for improvement. Close attention should be paid to the implementation of the Batteries Regulation and its encouragement of higher value retention strategies, as well as to the interaction within the legal framework on batteries as a whole to prevent adverse effects and to exploit synergies in pursuance of CE objectives.