{"text":[[{"start":9.56,"text":"Battery companies want Brussels to ignore calls from carmakers and implement post-Brexit rules that would slap tariffs on most UK-EU electric car sales, warning a U-turn would undermine their European investments."}],[{"start":22.24,"text":"German chemicals group BASF and Belgian materials company Umicore are lobbying the European Commission to enforce stricter rules on what qualifies as a European-made vehicle from 2027, after their introduction was delayed by three years."}],[{"start":36.4,"text":"The companies have battery-metals businesses and have invested millions in building out European production of cathode active materials (CAM), the key metals that form the positive electrode of batteries in electric cars."}],[{"start":47.48,"text":"“Europe cannot simultaneously say it wants a resilient battery value chain and remove a rule that stimulates demand for EU-manufactured battery materials,” said Wouter Ghyoot, vice-president of government affairs at Umicore."}],[{"start":60.12,"text":"BASF said reopening rules of origin would “weaken demand for EU-produced cathode active materials and severely complicate future capacity expansion”. It has lobbied the Commission to stick to the January 1 2027 start date."}],[{"start":74.16,"text":"The push puts the chemicals lobby at odds with carmakers. In a letter to the European Commission seen by the FT, the European Automobile Manufacturers’ Association (Acea) has warned that dependence on Chinese batteries and raw materials means most vehicles would not meet the post-Brexit requirements."}],[{"start":90.44,"text":"Under the rules of origin agreed under the UK and EU’s Trade and Cooperation Agreement, starting next year, non-EU or UK materials can make up no more than 35 per cent of the value of battery cells and 30 per cent of battery packs. EVs that fail the test face tariffs of 10 per cent when traded between the UK and EU."}],[{"start":109.88,"text":"China produces 85 per cent of the world’s CAM, according to the International Energy Agency, while many EVs assembled in the EU and the UK rely on Chinese batteries and cathode active materials."}],[{"start":121.24,"text":"Acea has warned that about 82 per cent of the 520,000 EV passenger cars and vans EU producers expect to sell in 2027 — worth about £17.9bn — would fall foul of the rules."}],[{"start":134.88,"text":"But the Commission wants to build up the supply of these materials to boost Europe’s manufacturing and independence from Chinese supply chains. One official said that another postponement would damage the EU’s “credibility”."}],[{"start":147,"text":"“There is more than the necessary volume for CAM in Europe . . . if we delay, what message do we send when we are trying to negotiate with China,” the person said."}],[{"start":157.4,"text":"In a letter sent this month, Acea instead proposed postponing a battery pack assembly requirement until 2030 and the additional requirement of originating cathode material until 2032."}],[{"start":168.48,"text":"However, Marco Mensink, head of chemicals industry group Cefic, said that “the European supply is there . . . when you come to an agreement people have to follow that agreement”."}],[{"start":179.88,"text":"The Commission declined to comment."}],[{"start":182.24,"text":"Alongside the looming deadline over car exports, the EU and UK are also on a collision course over the bloc’s “Made in Europe” agenda, which London has warned will disadvantage British companies vying to be part of future EU supply chains."}],[{"start":197.04,"text":"Disagreement over how the UK should be included in the scheme has led to the delay of a summit planned for early November which was intended to cement the gains of the EU-UK “reset” of trading relations."}],[{"start":208.4,"text":"On Monday, the chambers of commerce of the UK and more than six EU industrial powers, including France, Germany and the Netherlands, issued a joint statement calling on European institutions to show greater flexibility towards UK industry."}],[{"start":222.76,"text":"Catherine Le Yaouanc, general manager of the Franco-British Chamber of Commerce, said that including the UK as a trusted partner was “essential to strengthening investment, innovation and long-term prosperity on both sides of the Channel”."}],[{"start":223.26,"text":"Additional reporting by Andy Bounds in Brussels"}],[{"start":240.36,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790757736_5770.mp3"}