Battery companies including German chemicals group BASF and Belgian materials company Umicore are lobbying the European Commission to enforce post-Brexit rules of origin for electric vehicles starting January 1 2027, warning that a U-turn would undermine their European investments in cathode active materials (CAM). The rules limit non-EU or UK materials to 35% of battery cell value and 30% of battery pack value, with EVs failing the test facing 10% tariffs on UK-EU trade. Umicore’s Wouter Ghyoot said Europe cannot demand a resilient battery value chain while removing rules that stimulate EU-made material demand.

BASF warned reopening rules would weaken demand for EU-produced CAM and complicate capacity expansion. The European Automobile Manufacturers’ Association (Acea) argues most EU EVs would fail due to reliance on Chinese batteries and CAM, with 82% of the 520,000 EV passenger cars and vans EU producers expect to sell in 2027 worth £17.9bn at risk. However, the Commission aims to boost European CAM supply and reduce dependence on China, which produces 85% of global CAM.

Acea has proposed delaying battery pack assembly rules until 2030 and CAM origin rules until 2032, but Cefic’s Marco Mensink insists agreements must be followed. The EU and UK are also at odds over the bloc’s “Made in Europe” agenda, delaying a planned November summit as UK chambers of commerce call for greater flexibility.