EVs must be 70% made in the EU to qualify for state support, Brussels says

Electric vehiclesAdd to myFTGet instant alerts for this topicManage your delivery channels hereRemove from myFTEVs must be 70% made in the EU to qualify for state support, Brussels saysDraft legislation on local content by European Commission seeks to protect bloc’s manufacturing industriesA Volkswagen ID.4 electric vehicle. The draft legislation says that new cars benefiting from state schemes to help motorists purchase vehicles, or bought or leased for public bodies, must be assembled within the EU © BloombergEVs must be 70% made in the EU to qualify for state support, Brussels says on x (opens in a new window)EVs must be 70% made in the EU to qualify for state support, Brussels says on facebook (opens in a new window)EVs must be 70% made in the EU to qualify for state support, Brussels says on linkedin (opens in a new window)EVs must be 70% made in the EU to qualify for state support, Brussels says on whatsapp (opens in a new window) Save EVs must be 70% made in the EU to qualify for state support, Brussels says on x (opens in a new window)EVs must be 70% made in the EU to qualify for state support, Brussels says on facebook (opens in a new window)EVs must be 70% made in the EU to qualify for state support, Brussels says on linkedin (opens in a new window)EVs must be 70% made in the EU to qualify for state support, Brussels says on whatsapp (opens in a new window) Save Alice Hancock in Brussels and Kana Inagaki in LondonPublishedFebruary 16 2026Jump to comments sectionPrint this pageStay informed with free updatesSimply sign up to the Electric vehicles myFT Digest -- delivered directly to your inbox.Brussels is planning to force electric-vehicle manufacturers benefiting from state support to ensure that at least 70 per cent of the components in their cars are made in the EU, as it seeks to protect the bloc’s industries from intense Chinese competition.The European Commission will also stipulate that at least 25 per cent of products made from aluminium and 30 per cent of plastics used for windows and doors in the construction sector must be manufactured in the EU in order to qualify for government subsidies or benefit from public contracts, according to draft legislation seen by the Financial Times.The targets on local content for the EV sector and heavy industries including construction are part of a wider effort by the EU to try to save its €2.6tn manufacturing base.Manufacturing industries in the EU have been closing plants and laying off workers in their thousands as a result of low-cost Chinese competition, high energy prices and the expense of complying with the bloc’s stringent climate initiatives.The Industrial Accelerator Act, which will be published by the Commission on February 25, is aimed at protecting the EU’s industries, partly by requiring public procurement tenders to take account of carbon emissions.The draft legislation says that new EVs, hybrids and fuel cell cars benefiting from state schemes to help motorists purchase vehicles, or bought or leased for public bodies, must be assembled within the EU and have at least 70 per cent of their components, excluding the battery, manufactured in the bloc, when measured by price.The legislation also says that several main components of a vehicle’s battery need to originate within the EU. Some automotive officials have said this requirement will be challenging given the EV industry’s heavy reliance on China for battery technology as well as materials. The 70 per cent components threshold is marked in square brackets in the draft legislation seen by the FT, meaning that it is still up for discussion and could be subject to change.The Commission declined to comment. The legislation has been the subject of heavy lobbying by industries. Those in clean technology sectors, such as renewable energy or batteries, and car parts suppliers, have been supportive of local content rules.Carmakers, however, have been split, with BMW warning that the rules would add unnecessary expense and bureaucracy, while VW and Stellantis last month called for a “made in Europe” public scheme that would incentivise manufacturers to use local content in their vehicles.Other carmakers have called for a “made in Europe” local content rule that is broadened beyond the EU to include manufacturing hubs such as Turkey and the UK, as well as big trading partners such as Japan. Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article EU economy Add to myFT Industrial goods Add to myFT Electric vehicles Add to myFT EU financial regulation Add to myFT BMW Add to myFT Comments