EU draft rules push EV makers to meet 70% local parts threshold for subsidies

Under draft rules from the European Commission, new electric vehicles, hybrids and fuel cell cars would need at least 70% of their non-battery components produced in the EU and final assembly within the bloc in order to qualify for state support. The proposal, linked to a wider effort to protect Europe's €2.6 trillion manufacturing sector, also sets minimum EU production shares for aluminium and plastics used in construction. Automakers are split, with some warning of higher costs while others back a "made in Europe" approach similar to local content requirements seen in the United States.