The EU's proposed Industrial Accelerator Act attempts to strengthen Europe's electric vehicle and battery manufacturing base, but advocacy group Transport & Environment argues the policy contains loopholes that could undermine its effectiveness.
The IAA framework targets European battery supply chain development to reduce reliance on imports and build domestic production capacity. T&E supports the underlying goals: securing jobs, advancing climate targets, and reducing geopolitical vulnerability to battery supply disruptions. However, T&E's position paper identifies specific provisions requiring revision.
The core tension centers on "Made-in-EU" standards and their enforcement. Loopholes in the current draft could allow manufacturers to claim European production credentials without meeting stringent local content thresholds. This matters because genuine European manufacturing generates employment, reduces shipping-related emissions, and strengthens the continent's technological autonomy in battery production, a sector China currently dominates globally.
Battery manufacturing represents the supply chain's bottleneck. Europe currently produces roughly 10 percent of the world's battery cells, according to industry data. The IAA seeks to accelerate capacity expansion by 2030, targeting supply security for the continent's transition to electric vehicles. Without robust rules, manufacturers could import components, perform minimal assembly in the EU, and still qualify for subsidies or preferential policies designed for domestic production.
T&E argues that the legislation must establish clear thresholds for local value addition and raw material processing. Lithium, cobalt, and nickel extraction requires specificity. If Europe imports processed materials but claims Made-in-EU status, the policy fails to develop resilience. The organization also calls for environmental standards within the battery manufacturing process itself, tying support to emissions reduction targets for production facilities.
The timing pressures policymakers. EV adoption accelerates while Asian manufacturers expand European capacity. Without decisive action, Europe risks becoming a assembly location for foreign-designed batteries rather than developing independent technological