Impact of Europe's IAA legislation on battery manufacturing: a technical analysis
Europe’s IAA policy is likely to drive battery localization, sustainability and recycling, spurring innovation, but could add to compliance and supply-chain restructuring pressures.
Europe’s manufacturing sector is confronting a challenging economic landscape marked by high costs, mounting competitive pressure and the ever increasing need to invest in clean and green manufacturing technologies. European policymakers increasingly feel that this has put the region’s manufacturing engine under strain — a sentiment backed by numbers. Manufacturing’s share of EU GDP slipped from around 17% in 2000 to roughly 14% in 2024, a decline that is seen as a risk for long‑term growth, employment and strategic autonomy.
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