Brussels is planning to force electric-vehicle manufacturers benefiting from state support to ensure that at least 70 per cent of the components in their cars are made in the EU, as it seeks to protect the bloc’s industries from intense Chinese competition.
The European Commission will also stipulate that at least 25 per cent of products made from aluminium and 30 per cent of plastics used for windows and doors in the construction sector must be manufactured in the EU in order to qualify for government subsidies or benefit from public contracts, according to draft legislation seen by the Financial Times.
The targets on local content for the EV sector and heavy industries including construction are part of a wider effort by the EU to try to save its €2.6tn manufacturing base.