A planned 10% tariff on electric vehicles traded between the UK and the EU that lack locally sourced battery materials may be postponed, with the motor industry group ACEA pushing for a delay until 2030. The levy, drawn up during the 2021 Brexit negotiations, was due to take effect on January 1, 2027, and would apply to EVs whose battery packs are not assembled locally.
The Financial Times reports that ACEA, which represents EU automakers, says the vast majority of the roughly 520,000 EV passenger cars projected for sale in 2027, about 82%, would be caught by the charge. Supply chains have not kept pace with the plan, and most EVs built in the UK and EU still rely on Asian-sourced materials for key battery components.
Why carmakers want the charge pushed back
ACEA argues that if the levy came into force, UK- and EU-built EVs would no longer be competitive against rivals from China, which are themselves subject to import limits as the EU tries to shrink its trade deficit. The irony is that most battery packs and chemicals used in those European-built cars originate in Asia, with many imported from China.
ACEA has proposed postponing the requirements until 2030 and pushing a further rule on European-made battery cathode material to 2032. That matters because the tariff would land hardest on the models European factories are building right now, not on some future generation of cars.

Who stands to lose from a delay
Not everyone in Europe wants the postponement. Companies that have already invested in large-scale battery manufacturing plants, along with the EU chemicals industry, sit on the other side of the argument. For them, a delay weakens the case for building local supply chains when imported cells remain cheaper.
The two markets are deeply intertwined, which raises the stakes. The UK is the largest buyer of EU-manufactured vehicles, taking 30% of them, and the EU is the UK's biggest export market for EVs, with the two trading about €80 billion ($88 billion) a year. A tariff on battery origin would therefore cut across one of the busiest vehicle trade routes in Europe.
Timing and what is still undecided
A delay is considered likely, but how long the levy will be staved off is unclear. An unquoted UK official said serious negotiations will probably begin after an EU-UK summit scheduled for November 20, 2026.
These battery-origin rules are separate from the EU's postponed plan to sell only EVs from 2035; they concern where EV components come from, not what powers the cars. No new start date has been confirmed, and neither side has announced a final decision.

