ACEA calls for a delay in stricter EU-UK battery regulations
Starting in 2027, stricter origin rules for batteries are set to apply to electric vehicles traded between the EU and the UK. The manufacturers’ association ACEA is calling for a delay until the end of 2029. Otherwise, its calculations suggest tariffs of 1.47 billion euros could arise alone in 2027.
ACEA Executive Director Sigrid de Vries is requesting more time for stricter EU-UK battery rules.
Image: Acea
The current transitional rules under the trade agreement between the EU and the UK will expire at the end of 2026. According to ACEA, the European automotive industry is not yet able to meet the stricter origin requirements for battery cells and materials on a sufficient scale.
ACEA forecasts that around 520,000 electric cars and vans exported from the EU to the UK in 2027 will be worth 17.9 billion euros. According to the association’s estimates, approximately 426,000 of these vehicles, or 82 percent, will not meet the new origin requirements. They would be subject to a 10 percent tariff, which ACEA estimates will amount to 1.47 billion euros in total for 2027.
The association generally supports the goal of producing more battery cells and materials in Europe. However, the investments already underway will not reach full capacity until the coming years. Therefore, ACEA fears competitive disadvantages for European manufacturers in the British market. According to ACEA’s proposal, existing rules should apply to pure electric passenger cars and light commercial vehicles until the end of 2029. This would allow battery packs using cells or modules from third countries to be recognized as originating in the EU or Great Britain, provided the pack is assembled there.
Starting in 2030, battery cells should generally also be manufactured in the EU or the UK. By 2032, the active cathode materials (such as lithium, nickel, cobalt, manganese) should also originate from there. Thus, ACEA does not intend to abolish the localization requirements but rather to phase in their implementation over several years.
ACEA proposes a three-step tightening
The stricter requirements were already postponed once: The EU and the UK agreed in 2023 to maintain the more flexible rules until the end of 2026. ACEA points to manufacturers’ investments in European supply chains and argues that the issue is not whether localization occurs but rather when it will happen.
This move comes amid a broader debate over European local-content requirements. Just last week, the prime ministers of Baden-Württemberg, Bavaria, and Lower Saxony called for swift implementation of the Industrial Accelerator Act proposed by the EU Commission[](https://www.electrive.net/2026/03/04/industrial-accelerator-act-die-eu-setzt-jetzt-auf-made-in-europe/), as well as unified and practical “Made with Europe” criteria. Great Britain is also set to be included among the participating partners alongside EWR and EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland).
The Association of European Automobile Manufacturers refers to the Industrial Accelerator Act and sees its timeline as aligned with the localization requirements discussed therein. Trade policy should not advance faster than European industrial policy when it comes to localization, argues the association. Only for battery rules does ACEA call for an additional transition period. The planned tightening of origin rules for electric vehicles themselves, set for 2027, is intended to remain in place. According to the association, its members are capable of meeting these requirements.
For heavy commercial vehicles, ACEA also proposes a phased but longer transition period, without specifying a concrete timeline. The electrification of buses and heavy trucks is progressing more slowly, as battery and material manufacturers initially focused their European production capacity on electric cars. Electric tractor units are also intended to be included, as stricter rules regarding their batteries already apply today according to ACEA.
ACEA also identifies a need for action regarding plug-in hybrids: According to projections from its members, only two percent would meet the specified battery requirements. The association plans to submit a separate proposal on this matter soon. The letter dated September 16 is addressed, among others, to EU Commission President Ursula von der Leyen and EU Council President António Costa. It was signed by ACEA President Ola Källenius (who is also CEO of Mercedes-Benz) and ACEA General Director Sigrid de Vries.