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How Can IAA Bring Local Cleantech Manufacturing?

The article argues that embedding Union content criteria in the EU’s Industrial Accelerator Act (IAA) is the only viable lever to build a resilient, locally sourced battery industry. By conditioning public subsidies—such as EV purchase incentives—on a minimum share of EU‑made cells, cathode materials and recycled components, the EU can create a clear business case for firms like ACC, Powerco and Verkor. A phased “friendshoring” approach would initially allow limited non‑EU inputs, tightening to an EU‑only framework downstream, while new FDI rules would demand majority European ownership and mandatory technology transfer. The analysis estimates a modest 1‑3% price premium for Made‑in‑EU EVs, expected to shrink as production scales.