Transport & Environment (T&E) criticized a French-German government agreement on October 16, 2026, saying it would weaken the European Union’s car CO₂ standards and IAA requirements. Under the proposal, vehicles assembled in the EU with batteries produced in China could qualify for a “Made-in-EU” label.
According to T&E, the proposed changes would reduce the expected share of electric vehicles supplied in 2030 from 57% under the current target to 43%. The organization said this could slow the transition to electric vehicles, affect EU automakers’ ability to compete with Chinese manufacturers and reduce the availability of lower-cost electric models.
The agreement proposes requiring 10% of battery cells to be sourced in Europe in 2028–2029, increasing to 20% in 2030–2031. T&E compared those thresholds with 2025, when more than 50% of the cells used in electric vehicles sold in the EU were produced in Europe.
T&E Warns Franco-German Deal Puts 254 GWh at Risk
The proposed deal curbs projected 2030 EV supply and weakens European cell-sourcing rules, threatening gigafactory capacity and the regional battery supply chain.
Neutral rows compare 2030 policy scenarios, not year-on-year movement: the proposed deal lowers EV supply from 57% to 43%.
T&E estimates that the proposed sourcing levels would weaken demand certainty for European battery plants, putting 164 GWh of production capacity at risk in 2027 and 254 GWh in 2030. It also said that delayed and reduced sourcing requirements for European-made battery cells and strategic components such as cathodes could adversely affect the regional battery supply chain.
The organization called on members of the European Parliament and EU governments to reject further weakening of the car CO₂ standards. It also urged policymakers to adopt effective European sourcing measures and more ambitious electrification targets for large company car fleets, which it said would support demand for European battery production from 2027.
Source: transportenvironment.org
