The UK government and European Council have agreed to extend current rules on electric vehicles (EVs) until the end of 2026, delaying the implementation of stricter rules of origin for EVs and batteries by three years. The EU-UK Trade and Cooperation Agreement, signed in 2020, included local content requirements to benefit from tariff-free trade. Originally set to be implemented in two stages starting in 2024, supply chain disruptions led to the decision to cancel the 2024 changes. This move aims to save manufacturers and consumers billions in costs and provides more time to scale up European battery production. While both the EU and UK have initiatives promoting the shift to electric vehicles, the European Commission recognizes the need to enhance efforts to boost battery capacity, with the 2027 deadline unchanged.

Source: ESGToday