European Union pushes for increased local manufacturing

The European Union is pursuing a ‘Made in Europe’ strategy to reduce external dependencies by increasing the production of goods and components within the region. This policy aims to secure jobs, technology, and manufacturing capacity.

However, the heavy-duty truck industry faces significant challenges regarding this transition. A study by the European Automobile Manufacturers' Association indicates that if these criteria were applied immediately, approximately half of the medium and heavy-duty trucks produced in Europe might fail to meet battery origin requirements for incentives or public procurement.

Stephane Sejourne, Executive Vice President of the European Commission, noted that the goal is to produce a portion of batteries within Europe, focusing on strategic components rather than 100% localization, following a roadmap aligned with existing value chains. The primary concern remains the speed of transition; if localization requirements outpace local production capacity, increased input costs could impact transport companies and ultimately raise prices for consumers on goods such as food and parcels.