ACEA welcomes Brussels proposal to extend post-Brexit agreement on batteries until 2027

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Electric vehicle battery.

The European Automobile Manufacturers Association (ACEA) “accepts” the proposal of the European Commission (EC) to delay until December 31, 2026 the trade and cooperation agreement with the United Kingdom (TCA), the pact post-Brexit, so the current The rules of origin (ROO) that consider batteries assembled on the continent from Europe will be maintained.

Therefore, ACEA considers that reaching an agreement with the United Kingdom to extend the current standards for batteries will avoid the imposition of a 10% tariff on exports of electric vehicles (BEV) made by the EU to the United Kingdom. This, according to the Association, comes at an “important moment” in the expansion of BEV production in the EU and the evolution of global competition for these vehicles.

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“The approval of the proposal is essential to guarantee the benefit of the entire European battery value chain,” said ACEA Director General Sigrid de Vries. “If the proposal is not approved, it will reduce the competitiveness of our exports and have a negative impact on the demand for batteries and materials in Europe.”

ACEA has repeatedly urged the EC to delay these rules until 2027, because they consider the new ROO, which requires all battery parts and some critical materials to be produced in the EU or UK, “impossible to achieve.” The United Kingdom is free. tariffs.

As a result, the owners estimate customs payments of 4.3 billion euros between 2024 and 2026, while BEV production will be reduced to about 480,000 units, equivalent to two medium-sized factories.

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In fact, the vice president of the European Commission Maros Sefcovic pointed out that the proposal was born after “listening to those affected” with the aim of “guaranteeing” that the EU is part of a successful transition and “promoting the battery industry.”

ACEA emphasizes that manufacturers have made significant investments in local supply chains where battery production will increase significantly in the future. “The Commission’s proposal will help close the gap between now and the time when these investments begin to generate significant industrial production,” the organization said in a statement.

Thus, they asked the EU member states to “unanimously” support the EC’s proposal, which would help ensure the “stability” of the industry in its critical phase towards the green transition.

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For his part, de Vries pointed out that “everything possible must be done” to guarantee the competitiveness of the mobility sector and that it “remains a pillar of prosperity and employment in the European economy for a long time.”