July 1, 2026. Europe requires a more assertive ‘Made in EU’ strategy within the Industrial Accelerator Act (IAA). The IAA has the potential to transform Europe’s sustainability, competitiveness, and security objectives into tangible industrial achievements. Amidst a period of aggressive global shifts, it is crucial to implement a more assertive and impactful ‘Made in EU’ approach to restore industrial leadership and safeguard long-term competitiveness, economic security, and a clean energy future.
Batteries and their associated supply chains are of paramount importance in this endeavor. Beyond merely decarbonizing transport, batteries serve as a fundamental technology for Europe’s vital sectors, encompassing robust energy systems with clean power generation and grid stability, essential infrastructure, defense capacities, and cutting-edge medical innovations. Despite the significant market challenges confronting Europe’s battery industry, prompt and focused assistance is essential to protect this strategic value chain before the opportunity is lost.
There is a tangible risk that dominant global actors could continue to leverage critical minerals as a strategic weapon. To shield the continent from external pressures, Europe must achieve a greater degree of energy and supply chain security.
These factors collectively underscore the necessity of developing a competitive and domestically rooted battery ecosystem. Such an ecosystem is vital for ensuring strategic autonomy and sovereignty, while also diminishing structural reliance on imported fossil fuels. This transition should proceed in alignment with industrial preparedness and in collaboration with strategic partners who demonstrate robust, long-term technological and investment commitments within the European market. Consequently, robust provisions within the IAA are imperative to foster the investment confidence needed to rapidly expand a domestic European battery value chain, reinforce existing industrial capacities, and prevent the emergence of new strategic dependencies.
As prominent independent organizations in Europe focused on transport and energy security, the European Initiative for Energy Security (EIES) and T&E, alongside RECHARGE, Europe’s foremost association representing the complete lithium battery value chain, collectively call upon the IAA to:
Prioritize the “electric tech stack”: This integrated system, comprising batteries, electric motors, power electronics, and control systems, is evolving into strategic dual-use technology. It is crucial for mobility, energy systems, the resilience of critical infrastructure, defense applications, and medical technologies. Ensuring the local security of this stack, in partnership with strategic allies, ought to be a distinct priority within the IAA.
Embrace a comprehensive value chain approach: Europe needs to cultivate competitive industrial capacities spanning the entire battery supply chain. This ranges from the extraction and refining of raw materials to the manufacturing of key components, cell production, and recycling. Such an approach must encompass battery-grade strategic materials, precursor active materials, anode active materials, and domestically recycled battery metals, taking into account both new investments and existing manufacturing sites. This holistic value chain strategy should align with generating appropriate investment incentives and actual industrial preparedness, thereby preventing any detriment to the competitiveness of Europe’s own battery industry.
Guarantee robust and reliable ‘Made in EU’ provisions: While other regions widely employ local content mandates, Europe has historically subsidized demand without adequately securing its supply. Public funding mechanisms, including vehicle subsidies, tax incentives, and public procurement, must prioritize strategic products manufactured within Europe. The specific provision concerning corporate vehicles is crucial for aligning demand with industrial policy goals, thereby establishing essential lead markets. The aim is not to impede market access, but rather to ensure that public assistance supports and incentivizes European manufacturing. The many exemptions present in the Commission’s IAA proposal should be eliminated to prevent it from becoming an optional framework that fails to foster a domestic market. Enhanced anti-circumvention and market protection measures ought to be implemented to deter dominant global entities from utilizing indirect production setups, subsidies from third countries, or preferential jurisdictions to bypass the IAA’s objectives. Concurrently, collaboration with trusted strategic partners should be sustained to ensure the uninterrupted continuation of European production.
Ensure foreign direct investment (FDI) benefits Europe: While foreign investment is appreciated, it must genuinely contribute value to the European economy, its workforce, and its supply chains. We endorse the implementation of stringent conditions for FDIs, applicable to all significant investments in strategic sectors. These conditions should include EU ownership, compulsory technology transfers, local workforce employment, and local sourcing requirements.
Building resilience carries a sovereignty premium, yet the price of failing to act—risking the loss of our industrial foundation and succumbing to strategic dependence—is considerably greater. The IAA needs to be a straightforward yet powerful framework that establishes a compelling business case for investment. It ought to serve as the foundational element of the EU’s industrial policy.
