ACEA letter to the European Commission on battery rules of origin
ACEA has requested the European Commission to maintain the current transitional rules for batteries in the EU/UK Trade and Cooperation Agreement (TCA) until the end of 2026.
This letter to the Commission explains that, otherwise, the payment of customs duties over that period would amount to €4.3bn. This risks significantly reducing the EU auto industry’s market share of electric vehicles in the UK, potentially impacting the production of some 480,000 electric vehicles.
While the restrictive rule of origin is ostensibly a tool to drive investment in European battery supply chains, its application will be counterproductive in the short term by creating a situation in which no player in the supply chain is able to comply, the letter explains. Given investments in EU electromobility supply chains and the establishment of a more developed battery supply chain in the next years, ACEA asks the European Commission to urgently consider its proposal for a bridging mechanism for the implementation of battery rules of origin in the TCA.
While the restrictive rule of origin is ostensibly a tool to drive investment in European battery supply chains, its application will be counter-productive in the short term by creating a situation in which no player in the supply chain is able to comply.
