Source: European Parliament
Batteries, which account for 30-40% of value-added of a typical electric passenger car, are a critical battleground for future employment and value creation.
Europe needs a cost-competitive domestic cell production and supply chain, also with a view to preparing against supply shocks and crises and protecting economic sovereignty.
That would cover a large part of the supply of battery cells and European value-added along the supply chain, including EU production capacities of anode active materials, cathode active material and its precursor, and other relevant battery components. This also requires investments of European players in battery material mining and refining operations in Europe or oversea.
As indicated in the Industrial Action Plan for the European automotive sector[1] published in March 2025 by the Commission, the objective for 2030 is to achieve a European added value of more than 50% along the value chain.
Article 7 of Regulation (EU) 2023/1542[2] mandates the Commission to adopt delegated and implementing acts to supplement this regulation and ensure harmonised implementation across the EU.
In accordance with Article 7 of Regulation (EU) 2023/1542, the Commission follows a stepwise approach with a gradual and cumulative increase in the carbon footprint requirements.
For the final step of setting maximum carbon footprint thresholds, the Commission will carry out an impact assessment, including an assessment of the economic impacts of this measure.
The aim is to boost transparency and shift the EU market towards batteries with a lower carbon footprint, regardless of where they are produced.
As required by Article 7(1) of Regulation (EU) 2023/1542, the Commission is currently working on developing a methodology for calculating and verifying the carbon footprint of electric vehicle batteries on the basis of Annex II to the regulation.
After publication of a draft delegated act on the ‘Have your say’ portal on 30 April 2024[3] and a dedicated meeting of the Member State expert group on 11 July 2024, the Commission is currently analysing the way forward for the adoption of the delegated act, taking into account the feedback received.