economy
Car industry pressing EU for further delay to Brexit EV tariffs
Exclusive: deal in 2020 had sought to stimulate local battery making but industry says it still cannot meet targets
TL;DR
- The EU and UK car industries are requesting a suspension of tariffs on electric vehicle imports due to difficulties meeting Brexit deal rules of origin.
- The current rules, set for January 1, 2027, require a significant portion of EV components, especially batteries, to be manufactured in Europe to qualify for tariff-free trade.
- Industry leaders state that battery production in the EU and UK is far behind schedule, with estimates suggesting only about 20% of batteries will be made in the EU by 2027, falling short of targets.
- Factors hindering battery production include the slow pace of development, high manufacturing costs compared to China, supply chain challenges exacerbated by global events, and the long lead times for establishing new facilities.
- Automotive associations are calling for a policy shift from the European Commission and a pragmatic solution to avoid damaging tariffs and protect the automotive partnership between the EU and UK.