The European Commission is expected to announce a proposal that will delay the Brexit tariffs on electric vehicles set to commence in January, according to industry sources.

The proposal, which is likely to be well received by the UK, is set to be announced by the European Commission vice president today.

Once the announcement is made, the 27 member states will have to vote on the proposal next week, providing car manufacturers with the opportunity to escape significant tariffs on imported car batteries or battery materials.

Under the Brexit deal signed by the EU and the UK, electric vehicles (EVs) need to have 45% of EU or British content from 2024, with a 50%-60% requirement for their battery cells and packs, or face British or EU import tariffs of 10%.

Bloomberg Intelligence claims that this tariff could result in a €4.3 billion (£3.7 billion) loss for the sector over the next three years.

Additionally, the European Commission is set to unveil a financial support package for the European battery industry. This move aims to counter Chinese competition, addressing concerns raised by European officials that the EU is increasingly reliant on Chinese battery imports.

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By GlobalData

Most of the EU’s 27 member states, including Germany, have backed the proposal to delay the tariff to allow the region’s supply chains to develop further, as reported by Bloomberg.

However, support is not unanimous. Last month, in what the UK Business and Trade Secretary called an “ideological” move, France openly refused to postpone the implementation of the tariffs.