Norway and the European Union have signalled an intent to cooperate on electric vehicle battery value chains and raw material supply following a visit to Norway by European Commission Vice President Maros Sefcovic.

In a joint statement Sefcovic and Norwegian Industry Minister Jan Christian Vestre said “sustainable value chains for minerals, metals and batteries help decarbonise the economy, addressing strategic dependencies and boosting jobs and growth.”

The two sides also agreed to further discuss a rules-of-origin clause drawn up during the Brexit agreement between the EU and Britain, which Norway has said could hamper its battery industry.

The Brexit clause stipulates that electric cars produced and exported in either Britain or the EU from 2027 must contain batteries produced within either of the two, or face a 10% customs tax.

There are several large scale battery production and recycling plants planned in Norway, but under the Brexit clause, batteries produced in Norway would be subject to the 10% tax levy if used in cars manufactured in either the EU or Britain.

In a second agreement signed last week, the EU and Norway are to deepen their energy cooperation.

Source: Reuters