The EU plans to reduce the cost gap between locally made batteries and Chinese imports from 90% to 30% by 2030 through its 'Made in Europe' initiative. A report by transport and environment group T&E states that scaling up European battery production could lower costs to $14 per kilowatt-hour, down from a potential $41, saving EV owners around $590 per vehicle. The EU executive will propose the 'Industrial Accelerator Act' on Wednesday, requiring public funding to prioritize locally manufactured products in sectors like batteries, solar, and electric vehicles.

T&E argues that improved efficiency, automation, and lower scrap rates will offset higher production costs, making European batteries competitive. Critics warn that local content rules might raise prices, but T&E insists these are necessary to avoid supply chain disruptions, citing China's export restrictions on critical minerals. The plan also calls for tax rebates for EVs and corporate car schemes to boost adoption.