Rules of origin: EU and UK sign off deal providing much-needed certainty for EU electric vehicle manufacturing

Brussels, 21 December 2023 – The EU and UK have today signed off on extending current battery and electric vehicle (EV) rules of origin under the Trade and Cooperation Agreement (TCA). European manufacturers welcome this solution, which will help support the competitiveness of Europe’s burgeoning electric vehicle manufacturing industry.  

“The long-awaited deal to extend rules of origin by three years provides much-needed certainty to Europe’s growing electric vehicle battery supply chain. Instead of penalising green industries, today’s decision is recognition that it takes time to build up emerging value chains,” noted Sigrid de Vries, ACEA Director General. “It is also a strong signal that the EU is willing to uphold the competitiveness of its critical industries – the deal has potentially avoided a hefty €4.3 billion in tariff costs and saved some 480,000 units of electric vehicle (EV) production.” 

Today’s decision comes as a report published last week indicates the massive challenges for Europe’s EV manufacturing sector. Backed up by comprehensive strategies to boost domestic supply chains and homegrown EV industries, the report notes that the EU is at risk of losing ground to Chinese and US competitors. “Unlike China and the US, the EU lacks a robust industrial strategy to boost electric vehicle manufacturing,” added de Vries. While we applaud today’s hard-fought decision, we must build on this positive collaboration to solve the immense challenge of building a mature EV battery supply chain in Europe.”  

De Vries: “Vehicle manufacturers want to lead Europe’s green transition and build the future of EV manufacturing in Europe – for the benefit of all Europeans. Building on today’s constructive decision from law makers, the focus should turn to framing a holistic EU industrial strategy for the entire green value chain, from R&D, mining, refining and manufacturing; to charging networks, energy supply, purchase incentives, and recycling.” 

The long-awaited deal to extend rules of origin by three years provides much-needed certainty to Europe’s growing electric vehicle battery supply chain.

Notes to editors

      About ACEA

      • The European Automobile Manufacturers’ Association (ACEA) represents the 15 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Toyota Motor Europe, Volkswagen Group, and Volvo Group
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      About the EU automobile industry

      • 12.9 million Europeans work in the automotive sector
      • 8.3% of all manufacturing jobs in the EU
      • €392.2 billion in tax revenue for European governments
      • €101.9 billion trade surplus for the European Union
      • Over 7% of EU GDP generated by the auto industry
      • €59.1 billion in R&D spending annually, 31% of EU total
      Content type Press release
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