An agreement with the UK to prolong existing battery regulations would prevent a 10% tariff on exports of European-made BEVs to the UK, the top export destination for the EU auto sector.
The ACEA (European Automobile Manufacturers Association) has praised the European Commission’s plan to extend the current EU-UK Trade and Cooperation Agreement (TCA) battery rules by three years. This extension would prevent a 10% tariff on European-built battery electric vehicles (BEVs) being exported to the UK, the EU auto industry’s leading export market. The extension is seen as crucial for EU BEV production growth and staying competitive globally.
ACEA is now pushing for the Council to approve this proposal, emphasizing its importance for the health of EU BEV manufacturing and the broader European battery value chain. ACEA Director General Sigrid de Vries warns that not approving the proposal could harm the competitiveness of European exports and negatively affect demand for European batteries and materials, giving an edge to competitors from other countries.
The stakes are high, with potential losses of 4.3 billion euros and a reduction in BEV production of around 480,000 units over three years, equivalent to the output of two average-sized auto factories. ACEA highlights its members’ commitment to fostering a competitive and advanced green mobility value chain in Europe, noting significant investments in local supply chains and upcoming increases in battery production. The Commission’s proposal is seen as a bridge until these investments yield substantial results.
De Vries argues for a comprehensive EU industrial strategy to ensure the mobility sector’s long-term competitiveness and role in the European economy. This strategy would encompass everything from research and development, mining, refining, and manufacturing to charging networks, energy supply, incentives for purchasing, and recycling.
As the industry enters a critical phase of its green transformation and faces new global BEV competition, ACEA urges EU member states to unanimously support the European Commission’s proposal to stabilize the industry and secure its future.
