The European Commission is preparing a groundbreaking proposal to mandate that key clean energy technologies be manufactured within the EU, aiming to strengthen local industry, reduce dependency on China, and reshape the continent’s industrial landscape amid rising competition and supply chain vulnerabilities.
The European Commission is preparing a proposal to require that key green technologies bought through public procurement be manufactured in the European Union, a measure aimed at strengthening local industry and cutting reliance on Chinese imports, according to a report by Newsbytes. The draft would initially require battery systems purchased by governments to be assembled within the EU within 12 months of the law coming into force, with battery management systems and two other components also sourced from the bloc. After two years the rules would tighten to require the battery system itself and additional core components, including cells, to be Europe-made. The draft stresses that “the EU must act strategically to secure and further strengthen its industrial base.”
The move forms part of a broader industrial strategy to ensure that the clean-energy transition supports, rather than undermines, European manufacturing. According to reporting by The Associated Press, the EU has already pursued complementary measures to bolster resilience and reduce dependencies, including a 12-month suspension agreement with China on rare earth export controls following talks between EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao. That pact aims to stabilise supply while a new export licensing system is developed.
Domestic raw material security is also being advanced. Industry and government initiatives, backed by substantial investment, are accelerating domestic production of critical minerals. The AP reports a €22.5 billion package supporting 47 strategic projects across 13 EU countries, including a pioneering mine and processing project in Greece for gallium, one of 17 materials singled out for strategic development under recent EU policy frameworks. Those efforts sit alongside the Critical Raw Materials Act, enacted on May 23, 2024, which explicitly targets the bloc’s dependence on overseas suppliers for lithium, rare earths and other inputs vital to batteries, solar and other clean technologies.
The procurement proposal is intended to dovetail with other policy tools. The European Commission’s Clean Industrial Deal, published in February 2025, seeks to lower energy costs for industry, stimulate demand for clean products through public purchasing and promote circularity via recycled content requirements and state aid measures. According to the Commission’s programme, coordinated procurement rules are a lever to nurture scale and domestic supply chains for low-carbon industrial goods.
The policy response is also a reaction to what EU officials describe as a competitive threat from China, which currently dominates manufacturing of solar panels and battery cells and is expanding in wind turbine production. Industry observers note that the bloc’s share of global industrial gross value declined from 20.8% to 14.3% between 2000 and 2020, a trend cited in the draft as a “strategic warning signal.” At the same time, tensions over trade enforcement are rising: China has filed a World Trade Organization complaint against EU tariffs of up to 35% on Chinese-made electric vehicles, arguing the levies breach WTO rules, while the EU defends the tariffs as a proportionate response to alleged subsidisation.
European industry is under pressure from weak output and high costs. Reporting by Le Monde highlights a marked decline in industrial production between July 2023 and July 2024 across the eurozone and the EU, with major manufacturers such as Germany, Italy and France recording notable contractions. Policymakers argue that targeted procurement preferences and complementary measures to secure inputs and finance decarbonisation could help arrest de-industrialisation and rebuild competitiveness.
For industrial stakeholders engaged in decarbonisation, the proposal would create a new demand signal for domestic suppliers of batteries, electric vehicles, and wind and solar components, while likely increasing compliance complexity for procuring authorities and global suppliers. The draft envisages staged implementation and escalating domestic-content thresholds, suggesting a policy path that initially prioritises assembly and selected components before moving to full-system and cell-level requirements. Industry data and project plans indicate the EU is attempting to knit together raw material sourcing, manufacturing scale-up and demand-side stimulus to convert climate ambition into industrial renewal.
The Commission is expected to publish the draft next week, at which point procurement officers, component manufacturers and raw-material suppliers will be able to assess specific rules, timelines and exemptions. In the interim, the proposal signals a clear strategic pivot: using public procurement as an explicit industrial policy tool to underpin the transition to net zero while seeking to shield European capacity from external competitive pressure.
- https://www.newsbytesapp.com/news/science/why-eu-is-planning-a-made-in-europe-label/story – Please view link – unable to able to access data
- https://apnews.com/article/909c251b9bd4bb6f3dc431e9fcfd9615 – The European Union and China have agreed to suspend China’s rare earth export controls for 12 months. This decision aims to stabilise the trade of rare earth materials, essential for high-tech and military applications, and follows discussions between EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao. Both parties are collaborating to establish a more stable export licensing system, emphasising the importance of maintaining stable trade relations for global economic stability and shared climate goals.
- https://apnews.com/article/c99de1a69863092fb40731a08f592e0d – In response to rising global tensions and supply chain vulnerabilities, the European Union is accelerating domestic production of critical minerals to reduce reliance on countries like China. A pioneering project in Greece aims to produce gallium, essential for semiconductors and solar panels, as part of 47 strategic projects across 13 EU countries. This initiative is backed by a €22.5 billion investment and seeks to ensure Europe’s self-sufficiency in 17 critical minerals, enhancing resilience amid global disruptions.
- https://apnews.com/article/f89660648d188ab16cd71a4dd21d1a7a – China has filed a formal complaint with the World Trade Organization over the European Union’s decision to impose tariffs of up to 35% on Chinese-made electric vehicles. The Chinese diplomatic mission argues that these tariffs violate WTO regulations and views them as protectionist. The EU contends that the tariffs are a fair response to alleged unfair government subsidies allowing Chinese EV makers to undercut European competitors, aiming to preserve fair market competition and reinforce the bloc’s industrial base.
- https://en.wikipedia.org/wiki/Critical_Raw_Materials_Act – The Critical Raw Materials Act (CRM Act) is a European Union regulation aimed at securing the supply of critical raw materials to EU member states. Enacted on May 23, 2024, the CRM Act focuses on expanding the EU’s domestic capacities to extract, process, and recycle raw materials. The act addresses the EU’s heavy dependence on China for materials like rare earth elements, lithium, and magnesium, which are vital for energy transition and digital technologies.
- https://en.wikipedia.org/wiki/Clean_Industrial_Deal – The Clean Industrial Deal (CID) is a European Commission action programme for enhancing competitiveness amid elevated energy prices and the climate crisis. Published in February 2025, the CID aims to lower energy costs, stimulate demand for clean products through public procurement, and promote circularity by increasing the use of recycled materials. It includes measures such as funding via state aid frameworks and the EU Innovation Fund, and supports the decarbonisation of energy-intensive industries like steel, metals, and chemicals.
- https://www.lemonde.fr/en/economy/article/2024/09/23/the-great-breakdown-of-european-industry_6727000_19.html – Between July 2023 and July 2024, Europe’s industrial production declined significantly, with the eurozone experiencing a 2.2% drop and the EU a 1.7% decrease. Major economies like Germany (-5.5%), Italy (-3.3%), and France (-2.3%) were hit hard, underscoring a lack of competitiveness amid global pressure from the U.S. and Asia. Former ECB President Mario Draghi warned that without substantial reforms, the EU risks industrial stagnation. The downturn is driven by weak domestic demand, skilled labor shortages, and high energy costs following the 2022 Ukraine war-related gas crisis.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 19 January 2026. The European Commission’s Clean Industrial Deal, which includes ‘Made in Europe’ criteria for public procurement, was announced on 26 February 2025. ([photon.info](https://www.photon.info/en/news/eu-commission-relies-on-made-in-europe-for-the-clean-industrial-deal/?utm_source=openai)) The article references this proposal, indicating it is reporting on recent developments. However, the specific details mentioned in the article, such as the requirement for battery systems to be assembled within the EU 12 months after the law comes into force, are not found in the provided sources. This suggests that the article may be based on a forthcoming draft proposal, which has not yet been publicly released. The lack of publicly available details raises concerns about the freshness and originality of the content.
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to the European Commission’s draft proposal, such as “the EU must act strategically to secure and further strengthen its industrial base.” However, these quotes cannot be independently verified against publicly available sources, as the draft proposal has not been released. This lack of verifiable sources raises concerns about the authenticity and accuracy of the quotes.
Source reliability
Score:
6
Notes:
The article originates from NewsBytes, a lesser-known publication. The lack of independent verification and reliance on unverified quotes from an unpublished draft proposal diminishes the reliability of the source.
Plausability check
Score:
8
Notes:
The article’s claims align with the European Commission’s Clean Industrial Deal, which aims to strengthen the EU’s industrial base and reduce dependence on Chinese imports. However, the specific details mentioned, such as the 12-month assembly requirement for battery systems, are not found in the provided sources, raising questions about the accuracy of these claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on a forthcoming European Commission proposal regarding ‘Made in Europe’ requirements for public procurement of green technologies. However, the specific details mentioned cannot be independently verified against publicly available sources, as the draft proposal has not been released. The reliance on unverified quotes from an unpublished draft proposal and the origin from a lesser-known publication diminish the credibility of the content. Given these concerns, the article fails to meet the necessary standards for publication.
