ACEA warns EU battery rules could cost UK car makers £1.6 billion

The European Automobile Manufacturers Association sent a letter to EU officials asking for a time-limited amendment to the battery Rules of Origin in the EU-UK Trade and Cooperation Agreement. The association warns that the standards slated for January 2027 - requiring 55 % of a vehicle’s value and higher percentages for battery packs and cells to originate in the EU or UK - cannot be met by many producers. It calculates that 82 % of electric passenger cars and vans exported from the EU to the UK would fail the test, incurring a 10 % customs duty and an estimated cost of €1.87 billion (£1.6 billion) in 2027 alone.

ACEA suggests a flexible rule for battery pack assembly until 2029, after which stricter thresholds would apply in 2030. The letter stresses that without such relief, the UK-EU automotive partnership could be damaged and the transition to electric vehicles slowed. The appeal was signed by ACEA President Ola Källenius and Director-General Sigrid de Vries.