Dec. 6 2023 15:23 – Updated 6 Dec. 2023 16:10
The European Commission proposes to set aside 3 billion euros to support battery production in Europe. At the same time, the commission is considering electric car imports from the British.
The battery pack will be financed through the EU’s innovation fund, the European Commission’s vice-president Maros Sefcovic said at a press conference on Wednesday.
At the same time, the commission does a U-turn and proposes to postpone the introduction of a separate customs duty of 10 per cent for electric cars imported from Great Britain during the same period.
Such cars often run on batteries from countries outside the EU, such as China, and the duty should actually start to apply from next year in line with the escalation plan in the Brexit agreement.
To avoid customs duties, more than 70 percent of the batteries must consist of components produced in the EU.
The commission has been reluctant to delay, but was eventually persuaded by the car industry. From that point of view, it has been pointed out that since car batteries are still impossible to obtain on the European market, the new tariff will make electric cars disproportionately expensive.
In Norway, too, there is a large investment in the production of car batteries or battery materials. But the EU’s rules of origin may mean that cars with too large a proportion of Norwegian-produced parts will be covered by the new customs rules, which will therefore apply from 2027.
Norwegian battery tangle
According to Energy and Climate Brexit created a special battery tangle, namely that after 2027 Norwegian batteries cannot be installed in electric cars manufactured in Great Britain or the EU, if these are to be sold duty-free in the EU and the British Isles.
Sefcovic says that Wednesday’s proposal will not solve the problem.
– This is a proposal that will help to solve problems for the EU and British industry. When it comes to Norway’s special situation, it is something we have to deal with separately, he says.
Two Norwegian companies have this year received large amounts of support from the EU for battery production: The companies Freyr and Vianode were awarded 100 and 90 million euros respectively this summer.