ACEA calls for delay to stricter EU-UK battery rules
From 2027, stricter rules of origin for batteries will apply to electric cars traded between the EU and the UK. The manufacturers' association ACEA is calling for a postponement until the end of 2029 - and warns that tariffs of €1.47 billion could be incurred in 2027 alone.
ACEA Director General Sigrid de Vries calls for more time for the stricter EU-UK battery rules.
Image: Acea
The current transitional rules of the EU-UK trade agreement expire at the end of 2026. According to ACEA, the European automotive industry cannot yet sufficiently meet the stricter rules of origin requirements for battery cells and materials that will follow.
ACEA expects around 520,000 battery-electric passenger cars and light commercial vehicles, worth €17.9 billion, to be exported from the EU to the UK in 2027. The association estimates that around 426,000 vehicles, or 82 per cent, would fail to meet the new rules of origin requirements. A ten per cent tariff would then apply to these, which ACEA calculates would total €1.47 billion in 2027.
The association fundamentally supports the goal of increasing battery cell and material production in Europe. However, investments already initiated will only reach full capacity in the coming years. ACEA therefore fears competitive disadvantages for European manufacturers in the UK market. For purely battery-electric passenger cars and light commercial vehicles, ACEA proposes extending the current rules until the end of 2029. This would allow battery packs containing cells or modules from third countries to be recognised as originating in the EU or the UK, provided the pack is assembled there.
From 2030, battery cells should also be manufactured in the EU or the UK. From 2032, active cathode materials (such as lithium, nickel, cobalt and manganese) should likewise originate from there. ACEA does not seek to abolish localisation requirements but rather to phase in their introduction over several years.
ACEA proposes three-stage tightening of rules
The stricter requirements have already been postponed once: in 2023, the EU and the UK agreed to maintain the more flexible rules until the end of 2026. ACEA highlights the investments manufacturers are making in European supply chains and argues that the issue is not whether localisation will happen, but the timing.
The initiative comes amid a broader debate on European local content requirements. Just last week, the ministers-president of Baden-Württemberg, Bavaria and Lower Saxony called for the rapid implementation of the [](https://www.electrive.com/2026/03/04/eu-unveils-industrial-accelerator-act-to-boost-made-in-europe-clean-tech/)Industrial Accelerator Act, as well as uniform and practical ‘Made with Europe’ criteria. The UK should also be included as a partner alongside the EEA and EFTA states (Iceland, Liechtenstein, Norway and Switzerland).
The European Automobile Manufacturers’ Association (ACEA) refers to the Industrial Accelerator Act and sees its timeline as aligned with the localisation requirements discussed there. Trade policy should not advance localisation faster than European industrial policy, the association argues. ACEA is only calling for an additional transitional period for battery rules. The tightening of rules of origin for electric vehicles themselves, planned for 2027, should remain in place. According to the association, its members can meet these requirements.
For heavy-duty commercial vehicles, ACEA also proposes a phased but longer transition, without specifying a concrete timeline. The electrification of buses and heavy trucks is progressing more slowly, while battery and material manufacturers are initially focusing their European capacities on electric passenger cars. Electric tractor units should also be included, as according to ACEA, stricter rules of origin for their batteries still apply today.
ACEA also sees a need for action regarding plug-in hybrids: according to member forecasts, only two per cent would meet the planned battery requirements. The association intends to submit a separate proposal on this. The letter, dated 16 September, is addressed to, among others, European Commission President Ursula von der Leyen and European Council President António Costa. It was signed by ACEA President Ola Källenius (also CEO of Mercedes-Benz) and ACEA Director General Sigrid de Vries.