The European Union has introduced a sweeping new legal framework aimed at revitalizing its manufacturing base, mandating higher domestic content in key sectors and offering targeted incentives for production within member states. The law targets a 65% increase in EU-made goods by 2030.
- Mandates 50% EU-origin components in key sectors by 2028, increasing to 65% by 2030
- Applies to public procurement and state-aided projects across all EU member states
- Targets electric vehicles, batteries, solar panels, and green hydrogen equipment
- Battery production capacity to rise from 120 GWh (2025) to over 250 GWh (2030)
- Enforcement via traceability requirements and withdrawal of public funding for non-compliance
- Expected to support over 200,000 industrial jobs, especially in Central and Eastern Europe
The European Commission has launched the 'Made in Europe' regulation, a cornerstone of its industrial strategy to counter years of manufacturing erosion. The law requires that at least 50% of components in critical sectors—electric vehicles, batteries, solar panels, and green hydrogen equipment—must originate from within the EU by 2028, rising to 65% by 2030. This mandate applies to all public procurement and state-aided projects across the bloc. The initiative builds on existing subsidies under the Inflation Reduction Act and the European Green Deal, but introduces enforceable standards. Companies receiving public funding or participating in EU infrastructure projects must demonstrate compliance through traceable supply chains. Failure to meet thresholds could result in the withdrawal of financial support or exclusion from bidding. Key sectors such as battery manufacturing are already seeing impact: EU battery production capacity is projected to grow from 120 gigawatt-hours in 2025 to over 250 GWh by 2030, driven by new facilities in Poland, Spain, and Sweden. The law also establishes a pan-European industrial monitoring system to track compliance and identify supply chain vulnerabilities. The regulation is expected to benefit over 200,000 industrial jobs, particularly in Central and Eastern Europe, where production hubs in Poland, Hungary, and Romania are expanding. However, concerns remain about potential trade tensions with non-EU partners and the cost of compliance for smaller manufacturers. The law is scheduled for implementation in phases beginning Q3 2026.