The European Commission is planning to introduce \u201cMade in EU\u201d requirements across a wide range of strategic sectors, from chips, cars, and chemicals to quantum technologies and renewable energy.\u00a0<\/p>\n
The law aims to protect Europe\u2019s industries against Chinese and US competition, while at the same time speeding up decarbonisation and electrification of energy-intensive industries and other sectors.\u00a0<\/p>\n
In a leaked draft text, seen by EUobserver, public support and procurement for sectors such as chips, cars, chemicals, and quantum technologies would be restricted to products manufactured within the European Union.\u00a0<\/p>\n
Electric vehicles would need at least 70 percent of components (excluding the battery) to come from European production, while batteries and solar panels must gradually increase the share of EU-made components over three years.<\/p>\n
Low-carbon steel, cement, aluminium, and plastics used in construction and automotive sectors would also be favoured in public contracts.<\/p>\n
On clean technologies, the Industrial Accelerator Act (IAA) proposes minimum EU-content rules for batteries, solar PV systems, electric vehicle components, solar thermal systems, heat pumps, onshore and offshore wind, nuclear fission, and hydrogen.\u00a0<\/p>\n
In the leaked draft, which can still be subject to changes, solar PV panels would need at least two additional key components to be EU-made, rising to three components after three years.\u00a0<\/p>\n
Batteries would follow a similar path, gradually increasing the share of EU-made cells, cathode materials, and other main components.<\/p>\n
Solar and batteries<\/p>\n
The law builds on the former European Central Bank chief Mario Draghi\u2019s report<\/a> on European competitiveness, which calls for targeted industrial policies.<\/p>\n Economist Lukas Bertram of the ZOE Institute<\/a>, which published a report<\/a> on the issue on Tuesday (17 February), told EUobserver recently that \u2018Made in EU\u2019 tools carry both \u201cbig potential and big risks\u201d and should be \u201ctargeted.\u201d\u00a0\u00a0|<\/p>\n