Rules of Origin to be extended to 2027

Described by Marcoš Šefčovič, the commissioner for interinstitutional relations in the EU as a “one off”, the EU will now be extending the rules of origin deadline for all electric vehicles for a further three years from 31st December 2024.

The rules of origin stated that all electric cars sold in the EU would require 45% of components to have been manufactured in their country of origin and had put UK manufacturers at considerable risk as there is no substantial electric battery manufacturer in the UK.

The 45% rule will now be imposed from the 1st January 2027, when originally a 55% rule had been due to be imposed.

The war in Ukraine, and the subsequent increase in energy bills is being seen as a major reason for the delay, but it also gives UK manufacturers some breathing room, but also for some battery manufacturers in the EU who are still developing and getting factories up to speed.

A €3 billion fund has been made available by the European Commission to support the most sustainable manufacturers in based in the EU.

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