The European Union is planning to introduce minimum “made in Europe” requirements for public procurement of key green technologies, as part of efforts to strengthen domestic industry and reduce dependence on Chinese imports, according to a draft European Commission proposal.
The move comes as the EU seeks to shore up its industrial base amid pressure from high energy costs, cheaper Chinese imports and tariffs imposed by US President Donald Trump, which have weighed on European manufacturers. A draft legal proposal, due to be published next week, would introduce new sourcing rules for government procurement of batteries, solar and wind energy components, and electric vehicles.
According to the draft, battery systems purchased through public procurement would, 12 months after the law enters into force, need to be assembled within the EU, with battery management systems and at least two other components sourced from within the bloc. After two years, the requirements would tighten further, mandating that battery systems themselves be manufactured in Europe, alongside a greater share of core components, including battery cells.
“The EU must act strategically to secure and further strengthen its industrial base and long-term competitiveness, and ensure that the climate transition becomes an engine of industrial prosperity rather than a source of de-industrialisation,” the draft proposal said, noting that its contents could still change before publication.
The Commission cited what it described as a “strategic warning signal”, pointing to the EU’s share of global industrial gross value added falling from 20.8% to 14.3% between 2000 and 2020. The draft also proposes minimum quotas in public contracts for EU-made, low-carbon industrial goods, and would require power cables and electric vehicle charging infrastructure procured by public authorities to be produced in Europe.
In addition, foreign direct investments exceeding €100 million in strategic sectors would face new approval conditions, including requirements to use Europe-made components and EU labour.
The plans have exposed divisions among EU member states, which will need to negotiate the proposal with the European Parliament. France has been a leading advocate of the measures, while Sweden and the Czech Republic have warned that stricter “buy local” rules could increase tender costs and undermine the bloc’s competitiveness.
