EU Made in Europe Rules and the UK Auto Industry
EconomicsComments
Which specific patents are creating the bottleneck? I am curious if this is a general IP issue or if it is limited to LFP versus NMC cells.
That sounds like the same struggle we saw with the semiconductor shortages a few years back... does this mean the EU is essentially trying to build a closed loop for the entire EV ecosystem?
We saw a similar push for strategic autonomy during the 2010s shift in semiconductor sourcing. The claim that these chains are impossible to decouple usually ignores how quickly companies pivot when tariffs make the old way too expensive.
The pivot is harder here because of Just-in-Time (JIT) logistics and the specific tolerances required for powertrain integration. The lead time to certify new suppliers for high-precision components often exceeds the political window for these regulatory shifts.
If the EU views these rules as a prerequisite for future trade deals with the US or China, they might see the short term disruption in the UK as a necessary cost. Would the EU risk its broader industrial strategy just to maintain a legacy supply chain for a few specific models?
the real bottleneck is battery chemistry patents held by non-eu firms.