The EU-UK Trade and Cooperation Agreement (TCA) currently allows for tariff-free trade of electric vehicles and batteries, provided they satisfy specific rules of origin. Products failing to meet these criteria are subject to a 10% tariff.
Starting 1 January 2027, new requirements mandate that battery packs and cells must originate within the EU or UK. These components must either use originating cathode active materials or contain a maximum of 30–35% non-originating content.
The European Automobile Manufacturers’ Association (ACEA) is requesting another delay to these rules, despite a previous three-year postponement. Transport & Environment (T&E) has released an analysis challenging these claims.
EU Trade Commissioner Maros Sefcovic stated in 2023 that the Commission would implement a mechanism to prevent any further extensions to these rules until 2032. T&E emphasizes that applying the permanent rules by January 2027 is essential for the European battery supply chain.
