Since we are living in a more technologically driven world, Electric Vehicles (EVs) is one of the most prominent modes of transportation. The European Union (EU) take a big step to change the rules of EVs and as a result of this decision, there might be big implications for the prices and car owners.
EU plans to boost Electronic Vehicles (EVs)
Measures to the rest of EU membership countries
The impact of EVs on batteries
The European Commission’s draft paper indicates that the European automotive industry is at risk of losing market share in technology. This means it will face significant higher costs in relation to competitors in electrical vehicles components. This is specifically relating to the batteries, that are accounted for 30%-40% of the value of a classical vehicle.
In addition, it is indicated on the draft that an increased European content requirements will occur on battery cells and components sold in electrical vehicles in the European Union. There will be looked into the support from companies who are producing batteries in the European Union. This is the responsibility of the European Union executive to look into this possibility of alliance.
Furthermore, this could be made available to foreign organisations too, as long as these companies are in partnership with EU organisations to allow sharing of expertise and technology. Other plans that the European Commission have is to propose conditions for inbound foreign investments in the automotive sector. The Commission also plans on looking into financial support for battery-recycling facilities.
Possible impact on other stakeholders
The European Union carmakers are facing factory closures, and it also have to face the United States tariffs. These carmakers have urged the Commission to grant relief from fines that is expected to rise to 15 billion euros ($15.6 billion) if their fleets do not meet CO2 emission limits during this year.
In addition, the draft paper that was developed by the European Union’s Commision, did not indicate what the Commission might offer by way of financial relief for these carmakers. The Italian auto lobby group ANFIA reached out last week Friday for bolder measures to occur. This included the big measure of cancellation of the planned fines for European car manufacturers.
Carmakers can now only hope for the best since the EU is focused on creating more EVs and the impact it will have on the production of batteries. In order for this plan to grow, certain measures and sacrifices have to be made, even if that means fines needs to be cancelled or reduces.