Overview
- Brussels published the Industrial Accelerator Act, creating preferences for EU‑made and low‑carbon goods in public procurement across strategic sectors including cars, batteries, solar, steel, aluminium and cement.
- The proposal requires electric vehicles to have at least 70% of parts costs produced in the EU, excluding the battery cells, to qualify for subsidies, with phased origin rules for battery packs.
- The act introduces conditions on foreign investments above €100 million when a third country holds over 40% of global capacity, including requirements such as at least 50% EU workers, a 49% ownership cap and tech‑transfer commitments.
- Low‑carbon thresholds are built into public purchases of materials, with reports noting a minimum 25% share for low‑carbon steel, as the Commission pushes decarbonisation alongside reshoring.
- A six‑month decision on whether trusted partners can count toward ‘EU origin’ was deferred, as Germany and many automakers warn of trade retaliation risks, France and suppliers back tighter rules, and countries like the UK, Turkey and South Korea seek clarity on impacts.