PRESS RELEASE IG Metall welcomes the extension of current regulations for electric vehicles in trade with the UK

IG Metall welcomes the European Commission’s proposal to extend the transition period for electric vehicles and batteries in the trade and cooperation agreement with the UK by three years. The EU member states are now asked to swiftly adopt this proposal and implement it in the Partnership Council with the UK.

Rules of origin should ensure that products “Made in the EU” have a high proportion of European added value and employment. In our view, exceptions to this can only be temporary.

Unfortunately, we must note that the expansion of European battery cell production—despite encouraging investment decisions and announcements—cannot keep pace with growing demand. Therefore, we will still be dependent on sourcing from third countries in the coming years. Reducing production capacity for battery electric vehicles must not be an option—if only from an employment policy perspective. Combined with a massive increase in the price of EU exports due to import duties, this important market would be left to competitors from third countries, not least China.

In addition to the swift extension of the transition period, it is crucial from an industrial policy perspective to further accelerate the development of European battery cell production. IG Metall welcomes the EU Commission’s announcement that it will provide an additional EUR 3 billion for a dedicated instrument for the battery value chain as part of the innovation fund.