The terms of a fair transition

Fair competition is a legitimate question

In October 2024, the European Commission imposed countervailing duties on battery electric cars from China following findings of unfair subsidisation and a threat of economic injury to EU producers. That is a specific trade investigation, not a blanket judgment about Chinese businesses or people. Source: European Commission ↗

The Commission published guidance on price undertakings in January 2026. The policy response can therefore include mechanisms other than collecting a duty on every relevant vehicle. Source: European Commission ↗

Origin and ownership are not interchangeable

In February 2026, the Commission accepted a price undertaking covering the CUPRA Tavascan made by Volkswagen (Anhui). Subject to the arrangement’s conditions, those imports can be exempt from the countervailing duty. Source: European Commission ↗

The case illustrates how intertwined the industry has become. A fair-market discussion should examine where production occurs and the terms under which it competes, rather than assume a brand’s nationality explains its entire supply chain.

Five tests for public support

1. Count the whole footprint. Publish lifecycle assumptions and local extraction impacts.
2. Build durable capability. Link support to demonstrated production, skills and service infrastructure.
3. Keep appropriate options open. Compare chemistries against the actual duty cycle and recovery system.
4. Make safety a funded obligation. Include incident reporting, responder preparation and end-of-life responsibility.
5. Verify circularity. Distinguish collected batteries from recovered materials and recycled content.

What we advocate

These are LithiumEurope’s editorial proposals, not a statement of enacted law. We favour a transition that maintains industrial choices, protects communities at both ends of the supply chain and gives proven recycling systems a fair hearing.

Public money should buy measurable outcomes. Neither “electric” nor “recyclable” should, on its own, become a substitute for evidence.