We all saw the tariff announcements from the US recently, with Chinese EVs, batteries and parts, and solar modules all being hit with significant tax hikes if imported from China. I covered this in a previous Insights piece. 

Well this week, a decision on potential EU tariffs on Chinese imports is expected. Will the EU take as bold action as Biden's US administration did? It's certainly a risk. Europe doesn't have anywhere near the same scale of subsidies and tax-breaks that the US has introduced in recent years, so introducing high tariffs on Chinese imports could have a pretty heavy effect on EV adoption (when European brand EVs remain very expensive) and on domestic battery supply (many European Gigafactories are slow in scaling or are even pausing / shelving their production plans right now - look at ACC and SVOLT announcements in the last week). 

That being said, these actions could actually force the Chinese EV OEMs and Tier 1 battery suppliers to further expand their local footprints in Europe - biting the bullet on stricter regulations and more expensive production and workforce costs, to reduce significant shipping and import costs if tariffs are brought in. Let's face it, this could be essential given the US market restrictions they're facing. 

If you add in the EU Battery Passport regulations that come into effect in 2027, this localisation move will enable the manufacturers to comply with the various rules around origin of supply and data security etc. 

This article gives a great oversight of some of the potential geographical considerations for Chinese companies looking to Europe, with Southern and Eastern Europe likely to benefit should tariffs be imposed.

How do you see it playing out?

Hyperion Executive Search supports battery and EV companies to source the best talent in Europe. Looking for expert support in building your teams, then contact us at david.beeston@hyperionsearch.com