Made-in-EU requirements for all battery components would secure cell demand and investments in midstream production
New analysis on the feasibility of cell and cathode requirements [1], finds that by 2030 sufficient amounts of Made-in-EU cells will be available for the IAA scope - including corporate and private EVs falling under a subsidy or tax scheme. As negotiations on the Industrial Accelerator Act (IAA) reach a critical stage, T&E analysis directly contradicts recent claims by the car industry about local content criteria being too ambitious.
Europe has a strategic opportunity to build a homegrown battery industry. However, scaling the EU battery sector is highly sensitive to demand certainty. Immediate targeted support is critical to compete with an influx of Chinese battery imports, which face virtually no tariffs. Local content requirements for cells and cathode active materials could mean an additional 34% in EU battery demands compared to the current baseline in 2027. (....)