IAA Will Ensure Most EVs Sold in Europe Will Have Batteries Made in the EU, but Loopholes Threaten Its Impact - CleanTechnica

The proposed EU Industrial Accelerator Act (IAA) aims to ensure that by 2027, nearly two-thirds of electric vehicles (EVs) sold in Europe will have batteries produced within the EU. The legislation sets local content rules requiring EV batteries to include key components such as cells, cathode active materials (CAM), and battery management systems (BMS) made in Europe, with increasing requirements by 2030. Additionally, EVs will need to incorporate green steel and have 70% of their non-battery components produced domestically. This move is intended to bolster Europe’s battery industry, enhance supply chain resilience, and reduce dependency on foreign suppliers. While Transport & Environment (T&E) welcomed the IAA as a positive step toward supporting local battery manufacturing and securing clean technology supply chains, it also highlighted significant loopholes that could undermine the law’s effectiveness. Notably, the inclusion of EVs from free trade agreement (FTA) countries for purchase subsidies and the extension of local content requirements to