The European Automobile Manufacturers’ Association, representing Europe’s major OEMs, called on the European Commission to “recalibrate” the 2035 CO₂ targets that effectively ban new petrol and diesel car sales.
The association argued that the 100% emissions reduction target is “no longer feasible” citing slow EV uptake in some regions, infrastructure bottlenecks, and high costs.
The proposal lands amid mounting political division. Germany and Italy are pushing for flexibility, while France and Spain have reaffirmed their commitment to the current phase-out date. And the commission is set to publish their recommendations in December.
Still, the broader data tells a different story. New AutoMotive’s latest figures show EV uptake continuing to rise in Europe, even under difficult market conditions. The question now is whether the Commission will stand firm or yield to pressure for a slower, less certain transition.
A Strategic Industry Under Strain
The debate goes beyond cars. The battery sector: the backbone of Europe’s net-zero ambitions, is feeling the ripple effects of policy uncertainty.
In a joint letter the CEOs of Verkor, ACC, and PowerCo warned that Europe’s battery industry is “at risk of losing its strategic autonomy” without immediate and targeted support. They argue that Europe’s automotive transition depends on nurturing a competitive domestic ecosystem before it’s too late.
Some battery makers are already diversifying. PowerCo, Volkswagen’s cell manufacturing subsidiary, recently expanded into energy storage systems, a move signalling how even established players are hedging their bets. But not all companies have that luxury. Smaller firms, still scaling production, face mounting costs, slow permitting, and the absence of the kind of industrial support seen in the US or China.
The industry’s plea is clear: without policy consistency and financial backing, Europe risks hollowing out its battery base just as it begins to mature. Putting thousands of jobs on the line, and billions of investment. This couldn’t be more pertinent in a month where China created more export controls on key battery materials. More EVs not less should be the rallying cry in Europe.
Momentum in the Supply Chain
Despite the political turbulence, progress continues across Europe’s battery value chain.
- CATL has accelerated the timeline for its €7.3 billion plant in Debrecen, Hungary, now expected to begin production by early 2026. Once operational, the facility will have a capacity of 100 GWh and employ up to 9,000 people, a cornerstone for Europe’s cell supply to BMW, Stellantis, and Volkswagen.
- In the UK, Altilium has inaugurated its £30 million ACT 2 pilot plant in Plymouth, the country’s first dedicated EV battery recycling facility. The site will validate processes for recovering and refining critical materials from end-of-life batteries, strengthening Europe’s circular capacity.
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Meanwhile in Brussels, the European Battery Alliance (EBA) and European Solar Industry Alliance (ESIA) held a joint ministerial meeting to review progress. The message was unified: batteries remain central to Europe’s industrial and energy sovereignty, but urgent, targeted policy support is needed to scale production and secure competitiveness.
