Europe is striving to increase its production of electric vehicles and especially their batteries, aiming to reduce reliance on foreign suppliers. However, many manufacturers believe that local producers are not yet prepared to meet the rapid pace set by European regulators. The goal, on paper, is to promote vehicles made in Europe and decrease dependency on imports. In practice, though, the challenge of producing batteries within the continent has proven more complex than expected. As electric vehicle sales continue to rise in several European countries, manufacturers are asking for more time to meet the new requirements. A key point in the current discussion is that the 70% European content threshold mentioned in the Industrial Accelerator Act does not apply to the entire battery of an electric vehicle. Instead, it refers to the value of components excluding the battery, which must come from within the EU. The European Commission’s proposal from March 2026 introduces specific rules for batteries, requiring that three components—such as the cells—be of European origin six months after the regulation takes effect. This requirement would increase to five components, including the battery management system, three years later. The European Automobile Manufacturers’ Association (ACEA) argues that these deadlines are too ambitious. The organization is requesting that the first deadline be extended to three years after the regulation is passed and the second to five years. This request comes at a time when European officials are pushing for faster local production to reduce dependence on Asian suppliers. However, manufacturing battery cells in Europe is not sufficient. Local production of the materials used in these cells, such as active cathode and anode materials, is still largely dependent on Asia. Additionally, many European projects are based on NMC batteries, which use nickel, manganese, and cobalt. In contrast, LFP batteries—cheaper and widely used by Chinese manufacturers—are gaining market share. As a result, some European production capacities may not align with the batteries needed by manufacturers. Despite the challenges, the European market for electric vehicles is growing rapidly, while local production capacities lag behind. France offers a striking example: in September 2026, 42% of new vehicle registrations were for fully electric or hydrogen-powered vehicles, up from about 22% the previous year. Over 75,000 electric vehicles were registered in that month, representing an 86% increase compared to the same period the previous year. Even when including rechargeable hybrids, electrified powertrains accounted for 48% of the French market. However, this growing demand still heavily relies on batteries imported from Asia. Recognizing these challenges, Brussels has allocated up to 1.5 billion euros to support European battery cell manufacturers in increasing their production capacity. The Battery Booster Facility aims to fund projects capable of achieving at least 10 gigawatt-hours (GWh) of annual production. Even with this financial support, however, building factories, obtaining permits, securing raw materials, training workers, and achieving competitive production costs remain significant hurdles. ACEA supports the development of a European battery industry but warns that rushing the process could increase vehicle costs and reduce the number of models eligible for public subsidies.