Car industry urges EU for second delay to Brexit EV tariffs
6 reported
The EU and UK car industries are pressing the European Commission to suspend tariffs on electric vehicle imports for a second time, citing an inability to meet rules of origin requirements set for January 1, 2027. Under the 2020 Brexit deal, 55% of a car’s value, 70% of the battery pack, and 65% of the battery cell must be made in Europe by that date to avoid tariffs. The commission previously suspended these rules for three years until the end of 2026, but industry representatives say battery supply chains are still not ready. Jonathan O’Riordan of the European Automobile Manufacturers’ Association (ACEA) said that while the industry had forecast 60% of batteries would be made in Europe by 2027, it now estimates “just under 20%” will be by that date. Mike Hawes of the UK’s Society of Motor Manufacturers and Traders (SMMT) called for a “pragmatic solution” to avoid tariffs on electric vehicles. A European Commission spokesperson stated that discussions on these topics can take place within ongoing EU-UK negotiations.
What’s reported
The EU and UK car industries are urging the European Commission to suspend tariffs on EV imports for a second time.
Under the 2020 Brexit deal, 55% of a car’s value, 70% of the battery pack, and 65% of the battery cell must be made in Europe by January 1, 2027, to avoid tariffs.
The commission previously suspended the rules for three years until the end of 2026.
ACEA’s Jonathan O’Riordan said the industry now estimates “just under 20%” of batteries will be made in the EU by January 1, 2027, down from a forecast of 60%.
Mike Hawes of SMMT said battery supply chains are “still not ready” to meet the requirements.
A European Commission spokesperson said discussions can take place within ongoing EU-UK negotiations.
Key figures
Jonathan O’Riordan, international trade director at ACEA (European Automobile Manufacturers’ Association)
Sigrid de Vries, director general of ACEA
Mike Hawes, chief executive of the UK’s Society of Motor Manufacturers and Traders (SMMT)
Stefan Scherer, boss of Europe’s only lithium factory (quoted on mine costs)
European Commission spokesperson (unnamed)
Sources: The Guardian
