The Industrial Accelerator Act (IAA) aims to strengthen Europe's economic resilience by promoting local production of electric vehicle technology. A new position paper from Transport and Environment (T&E) suggests closing loopholes to ensure that subsidies only benefit vehicles with batteries and components actually made in the EU. Key recommendations include prioritizing strategic components like cathode active materials and establishing lead markets for low-carbon steel and aluminum. The goal is to reduce dependence on foreign supply chains and ensure that foreign direct investments contribute to genuine local value creation.
