Is the EU about to introduce local content rules?

Trade deals, such as those between the EU and the UK, typically mandate local content requirements for vehicles traded between parties to the agreement. Both sides can include each other’s content in reaching the required target, typically 55%, in a process known as cumulation. The UK-EU trade agreement contains additional specific rules for batteries and electric vehicles (EVs), which demand a higher local content ratio from 1 January 2027. This policy, and similar policies in other parts of the world, are designed to encourage local production of components and support supply chains in the regions concerned.