ACEA took position about EU/UK battery rules, that is to say the concrete possibility to impose taxes on batteries (then, on electric vehicles) traded between the two markets. In fact, if the EU Commission fails to act, a 10% tariff will be placed on EU electric vehicle exports to the UK. According to ACEA, this may cost EU vehicle makers 4.3 billion euros over the next 3 years.

Under more restrictive ‘rules of origin’ due to apply from January, the only way to avoid these duties will be to source all battery parts and some critical battery material in the EU/UK. This is practically impossible to achieve today.

EU/UK battery rules, ACEA President Luca De Meo speaking

“Driving up consumer prices of European electric vehicles, at the very time when we need to fight for market share in the face of fierce international competition, is not the right move – neither from a business nor an environmental perspective,” stated Luca de Meo, ACEA President and CEO of Renault Group. “We will effectively be handing a chunk of the market to global manufacturers.”

“Europe should be supporting its industry in the net-zero transition as other regions do – not hindering it,” added de Meo. “There is a very simple and straightforward solution: extend the current phase-in period for battery rules by three years. We urge the Commission to do the right thing.”


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