EU's Industrial Accelerator Act Aims to Strengthen Local EV and Battery Production
The European Union has introduced the Industrial Accelerator Act (IAA) to bolster its economic resilience by enhancing local production of electric vehicles (EVs) and batteries. The IAA is designed to embed Union preference and Foreign Direct Investment (FDI) conditions into law, setting a framework for low-carbon industrial scaling. The act mandates that only EVs made with local batteries and components can benefit from purchase subsidies and tax incentives. This move is part of a broader strategy to ensure a significant share of the EV technology stack, including batteries, electronics, and e-motors, is produced within Europe. The Transport & Environment (T&E) group supports the initiative but highlights the need to close existing loopholes to effectively scale a European battery value chain. 
