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Home World Europe

EU Requires 70% Local Production for EV State Support

16 February 2026
in Europe
EU Requires 70% Local Production for EV State Support
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Brussels plans to require electric vehicle (EV) manufacturers receiving state support to ensure that at least 70% of their components are sourced from the EU, in response to competitive pressures from China. Additionally, the European Commission proposes that at least 25% of aluminium products and 30% of plastics in construction must also be EU-made to qualify for subsidies. While industries lobby for local content rules, carmakers are divided, with some fearing increased costs and others advocating for broader definitions of “made in Europe.” The legislation aims to protect the EU’s €2.6 trillion manufacturing sector amid plant closures and job losses.

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