The European Union is moving towards minimum “made in Europe” requirements for public purchases of green technologies, as policymakers seek to ease growing pressure on domestic manufacturers without shutting off international trade.
A draft European Commission proposal, seen by Reuters and due next week, would introduce new sourcing rules for government procurement of batteries, solar and wind energy components, and electric vehicles.
The plan comes as European manufacturers face high energy costs, intensified competition from lower-priced Chinese imports, and the impact of US tariffs imposed under President Donald Trump.
The proposal is limited to public procurement rather than economy-wide mandates, positioning the measures as a targeted response to supply-chain exposure and industrial erosion.
The draft states: “The EU must act strategically to secure and further strengthen its industrial base, long-term competitiveness and ensure that the climate transition becomes an engine of industrial prosperity rather than a source of de-industrialisation.”
Battery systems purchased by public authorities would be subject to phased localisation rules.
Twelve months after the legislation takes effect, systems would need to be assembled inside the EU, with battery management systems and two additional components sourced within the bloc. After two years, requirements would tighten further, mandating Europe-made battery systems and core components, including cells.
The Commission is seeking to reduce reliance on China, which dominates global solar panel and battery production and is expanding in sectors where Europe still has a foothold, including wind turbine manufacturing.
The draft describes Europe’s industrial decline as a “strategic warning signal”, noting that the EU’s share of global industrial gross value fell from 20.8% in 2000 to 14.3% in 2020.
Additional measures would set minimum EU-made thresholds for low-carbon industrial goods in public contracts, require power cables and EV charging infrastructure to be Europe-made, and tighten conditions on foreign investments above €100 million. France supports stronger localisation rules, while Sweden and the Czech Republic have warned they could raise tender prices and undermine competitiveness.