Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Update on Electric Vehicle Rules of Origin Extension

08 January 2024

Proposing MP
Kemi Badenoch Con
North West Essex
Type
Written Ministerial Statement
Department
Department for Business and Trade
View on Parliament.uk -->

At a Glance

Issue Summary

The UK and EU have extended the Rules of Origin requirements for electric vehicles and batteries under their trade agreement until December 31, 2026.

Action Requested

This extension avoids significant tariffs and supports the transition to net zero emissions. The government has also announced over £2 billion in capital and R&D investment for the automotive sector as part of the Advanced Manufacturing Plan.

Key Facts

  • The UK-EU TCA's rules of origin requirements for electric vehicles and batteries have been extended until December 31, 2026.
  • This extension avoids an estimated £2-4 billion in tariffs on average over £3,000 per car.
  • The UK-Turkey Preferential Trade Agreement has also been amended to replicate this ruleset extension.
  • At the Autumn Statement, over £2 billion was announced for capital and R&D investment in zero emission vehicles, batteries, and supply chain development.
▸ Assessment & feedback
Summary accuracy