(AOF) – The EU-UK Partnership Council announced the adoption of a decision aimed at extending the current rules of origin for trade in electric vehicles and batteries between the two parties by three years, i.e. until ‘by December 31, 2026. The rules of origin for electric vehicles and batteries under the TCA (Euro-British Trade and Cooperation Agreement) were designed in 2020 to encourage investment in battery manufacturing in the EU.
While unforeseen circumstances in 2020 led to slower development of the European battery ecosystem, the decision was made in light of concerns expressed by the European automotive, battery and chemical industries, as well than by the unions.
European manufacturers represented by Acea “welcome” this solution, which “will help support the competitiveness of the booming European electric vehicle industry”. “The long-awaited agreement provides essential security to the supply chain of batteries for electric vehicles in Europe,” specifies Acea. According to Sigrid de Vries, its general director, the agreement made it possible to avoid some 4.3 billion euros in tariff costs and save some 480,000 electric vehicle production units.
This extension cannot be repeated, since the Partnership Council is no longer empowered to change these rules until 2032. “This means that European industry must now step up its investments to increase and deepen its battery manufacturing capabilities” , concludes the European Commission.
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