TechCapsules

AI-summarised brief · reviewed before publication

The EU‑UK Trade and Cooperation Agreement (TCA) permits tariff‑free trade of electric vehicles and batteries if they satisfy rules of origin (RoO), imposing a 10 % duty on non‑compliant goods. Effective 1 January 2027, battery packs and cells must be produced in the EU or UK and contain originating cathode active material, limiting non‑originating content to 30‑35 %. The European Commission, led by Trade Commissioner Maroš Šefčovič, has pledged a “lock‑in mechanism” that bars any further extensions of these rules until 2032. Despite a three‑year delay, the European Automobile Manufacturers Association (ACEA) is lobbying for another postponement. Transport & Environment (T&E) refutes ACEA’s arguments, emphasizing that the permanent RoO are essential for securing Europe’s battery value chain, preserving investor confidence, and testing the credibility of the EU’s “Made in Europe” agenda.