UK EV industry floats post-2027 extension of TCA rules of origin deadline
The unforeseen impacts of the pandemic, energy price crunch and soaring inflation see influential voices call for flexibility in full imposition of EU battery rules
A likely shortfall in UK battery-making capacity risks British-made EVs being locked out of tariff-free access to the EU market when full rules of origin as per the post-Brexit Trade and Cooperation Agreement (TCA) come into force in 2027. And the problem is so acute that UK industry figures argued this week to a parliamentary committee that the country should seek a postponement of full implementation.
From 2027, the UK can export EVs into the EU at a zero tariff only if they contain 55pc UK or EU content and a battery pack originating in either. The originating battery pack must have either 65pc UK or EU content for the cell or 70pc for the battery pack. The stepped approach on rules or origin for EVs kick in from 2024.