European automotive industry groups are urging the EU to postpone Brexit-related EV tariffs again, citing slower-than-expected battery production and continuing supply chain challenges.
According to an exclusive report by The Guardian, automotive industry groups in the European Union and the United Kingdom are seeking a further delay to Brexit-related tariffs on electric vehicles (EVs), arguing that regional battery manufacturing remains well below the levels needed to meet upcoming trade requirements.
Under the EU-UK Trade and Cooperation Agreement, stricter rules of origin are due to take effect on 1 January 2027. To qualify for tariff-free trade, 55% of a vehicle’s value must originate in Europe, while 70% of battery packs and 65% of battery cells must be produced within the region. The rules were originally designed to encourage local production of batteries and other EV components within Europe and the UK.
Industry groups said current production levels are unlikely to meet those targets. Earlier forecasts EU Auto Industry Seeks Further Delay To Brexit EV Tariffs suggested that around 60% of batteries across vehicle segments would be manufactured in Europe by 2027. However, recent estimates indicate that less than 20% of EV batteries will be produced in the EU by that date.
The industry has attributed the shortfall to several factors, including pandemic-related disruptions, semiconductor shortages, high production costs and difficulties in securing critical raw materials. Industry representatives have also pointed to China’s strong position in battery supply chains and lithium refining.
Automotive associations from both the EU and the UK have urged policymakers to find a practical solution that supports the transition to electric vehicles while protecting investments in domestic battery production.
The request comes as European policymakers continue efforts to strengthen regional battery manufacturing and reduce supply-chain dependence amid growing competition in the global EV market.
