![]() ![]() Give us a bridging mechanism for the next three years,” O’Riordan told the Guardian. We’re just saying we are not in a position to go too restrictive right now. “We are not saying the rules should not be restrictive. If we are talking a heavy duty truck it is between 45% and 50%,” O’Riordan said.ĪCEA formally wrote to the commission mapping out the costs, arguing it needed another three years for Europe to scale up battery supply and chemical refinement which is critical to the process.Īt the moment, the trade deal merely requires the battery cell be assembled in Europe but, from next year, the parts including the cathode material must also originate in Europe, including the UK which ACEA said was impossible. With passenger cars, between 35% and 45% of the cost is … the battery. “The problem is the battery is such a high value component of an electric vehicle. O’Riordan told the Guardian China was the global supplier of “refined” active materials in batteries including nickel and manganese and cobalt oxide. The paper noted Stellantis last month warned it might have to close operations in Britain with the loss of thousands of jobs if the new rule of origin came into force in January.Ī central issue is a lack of understanding of how much of an electric car’s cost emanates from the refinement and processing of chemicals in batteries, a process dominated by China, ACEA said. The EU introduced the rule of origin to help boost the fledgling electric car trade.Ĭhina still dominates the supply of chemicals which consist of up to 45% of the cost of an electric vehicle, ACEA told the Guardian. It would mean electric vehicles imported from the EU, already considered prohibitively expensive by many, would cost even more next year. A tariff of 10% would add costs of up to EUR3bn passed on to the consumer, absorbed by the industry or a mixture of both, he added. ![]() “We would expect total sales to be around EUR25bn to EUR30bn by 2026,” Jonathan O’Riordan, ACEA’s international trade director, told the paper. ACEA represents 75% of the auto industry in the EU. Exports of ACEA members’ electric vehicles to the UK were valued at about EUR4.3bn in 2022 but with a recovery in supply chain and the move away from combustion engines, the market is projected to boom. ![]()
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