EU Legislation to Boost Local Production in Automotive and Construction Sectors

The European Union is set to introduce new legislation aimed at increasing local production within its automotive and construction industries. According to Jin10, the EU plans to mandate that electric vehicle manufacturers benefiting from state support ensure at least 70% of their vehicle components are produced within the EU. The legislative draft also stipulates that at least 25% of aluminum products and 30% of plastic used in doors and windows in the construction sector must be manufactured in the EU to qualify for government subsidies or public sector contracts. The Industrial Acceleration Act, scheduled for release by the European Commission on February 25, seeks to protect EU industries by incorporating carbon emission considerations into public procurement tenders. The draft specifies that new electric, hybrid, and fuel cell vehicles purchased or leased by public institutions must be assembled within the EU, with at least 70% of their components, excluding batteries, produced locally. Additionally, several key components of vehicle batteries must originate from the EU.