EV incentives to drive demand in Europe

Spanish Market: Metals
13/07/20

Europe is rapidly becoming a global hotspot for growth in the electric vehicle (EV) market, with incentives introduced by multiple national governments expected to drive growth over the next five years.

EVs accounted for 6.8pc of Europe's total vehicle sales in the first quarter of 2020, up from a 2.5pc share a year earlier, in part because of an overall drop in sales due to Covid-19 but also indicating robust demand within this sector. Overall, EV market share crept up to 3pc in 2019 from 2pc in 2018, according to the ACEA.

Meanwhile, the number of EV models available in the EU market is set to reach 214 by 2021, up from 98 at the end of 2019, according to the European Battery Alliance. With all these new models to sell during an era of declining overall vehicle sales, EU countries and the UK have introduced further incentives to encourage uptake of EVs.

In the EU's largest market, Germany, several carrot and stick policies have been designed to increase EV demand. From 1 July until December 2020, value-added tax (VAT) on EVs will fall to 16pc, down from 19pc. Any privately owned EVs registered until the end of 2020 will have a 10-year tax exemption and EVs with a sales price below €40,000 will qualify for a €9,000 subsidy until December 2021.

France announced a package of support for carmakers in May, which included several loans to its embattled national producers such as Renault. In addition, all EVs in France are subject to a tax exemption from CO2-related taxes. France has subsidies of up to €7,000 for households buying EVs below €45,000 and a scrappage scheme of up to €5,000 for households and €2,500 for individuals.

Spain has reduced tax by 75pc for EVs in big cities like Madrid and Barcelona, and a scheme which subsidises the purchase of EVs by €4,000-5,000 depending on if a vehicle seven years or older is scrapped. In Italy, EVs are tax exempt for five years from registration and get a 75pc reduction in tax after that. Italy also has a bonus-malus scheme, where vehicles are subsidised up to €6,000 per car emitting less than 70g of CO2/km, but penalised by €2,500 per car if they emit above 250g of CO2/km.

Outside the EU, in the UK there is a road and VAT tax exemption for zero-emission vehicles and a €3,000 government grant for vehicles below €50,000. Every country in the EU 27 plus the UK, excluding Lithuania, offers incentives, tax reductions or a combination of both.

The EU battery market is now expected to rival China in the coming years. EV production is set to surge to over 2mn vehicles by 2021, from under 500,000 in 2019 according to clean transport campaign group Transport & Environment. Investments in EVs were €60bn in 2019 according to the group's estimates, compared to €17bn in China. German carmakers could overtake Chinese companies in 2021 in EV production, according to the European Battery Alliance.

By Thomas Kavanagh

Electric vehicle incentive measures EU 27+ UK

Country	Tax break?	Incentive/Subsidy?
Austria	Yes	Yes
Belgium	Yes	No
Bulgaria	Yes	No
Cyprus	Yes	No
Croatia	Yes	Yes
Czech Republic	Yes	Yes
Denmark	Yes	No
Estonia	No	Yes
Finland	Yes	Yes
France	Yes	Yes
Germany	Yes	Yes
Greece	Yes	Yes
Hungary	Yes	Yes
Ireland	Yes	Yes
Italy	Yes	Yes
Latvia	Yes	No
Lithuania	No	No
Luxembourg	No	Yes
Malta	Yes	No
Netherlands	Yes	Yes
Poland	Yes	Yes
Portugal	Yes	Yes
Romania	Yes	Yes
Slovakia	Yes	Yes
Slovenia	Yes	Yes
Spain	Yes	Yes
Sweden	Yes	Yes
United Kingdom	Yes	Yes
— European Automobile Manufacturers' Association (ACEA)

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20/12/24

Viewpoint: Copper volatility, uncertainty ahead in 2025

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Viewpoint: PGM demand from hydrogen sector to rise

20/12/24

Viewpoint: PGM demand from hydrogen sector to rise

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US Congress passes waterways bill

19/12/24

US Congress passes waterways bill

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Q&A: Xcelsior aims to derisk minor metals investment

19/12/24

Q&A: Xcelsior aims to derisk minor metals investment

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Minor metals have multiple end-uses, each with its different market dynamics. You must have a very deep understanding of the commodities themselves, the pricing mechanism, and the material specifications… these supply chains can be opaque. They can be very complex and fast-changing. Being able to navigate them is quite challenging for a lot of more generalist investors. It fundamentally creates a market risk component for critical metals, which can be a barrier. Additionally, many larger mining companies have traditionally avoid these markets because the assets are smaller and may not yield the expected revenue and profits compared with larger copper or iron ore mines. Which metals are on your radar? We are looking very closely at all the major commodities where Wogen has a prominent trading platform, including antimony, tungsten, vanadium, mineral sands, chrome and magnesium. We also are very interested in cobalt, but more on the recycling and processing side. 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EU HRC imports drop a quarter on safeguards, AD probe

19/12/24

EU HRC imports drop a quarter on safeguards, AD probe

London, 19 December (Argus) — EU hot-rolled coil (HRC) imports have dropped by 24pc year on year in October, as a result of the safeguards changes introduced earlier in the year and the anti-dumping (AD) probe on key suppliers launched in August. Volumes amounted to 1.16mn t. The drop was underpinned by sharp declines from Japan, Egypt, Vietnam, Taiwan and South Korea. Meanwhile, other countries stepped in to fill the supply gap, such as Turkey, Ukraine and Serbia — deemed less risky for buyers, with all ramping up their volumes year on year by 292pc, 69.5pc and 172.8pc, respectively. Turkey was the top supplier with 222,760t in October. Imports from Indonesia also notably increased, by 41.5pc on the year to 29,140t. This volume will be likely to grow over November-March, but the country is expected to no longer be exempt from the safeguard measures from April onwards, market participants said. The European Commission this week launched an early review of the tariff-rate quotas, with changes, including on the developing countries list, to be introduced from April. Import supply is likely to drop further over the rest of the year, and into the first quarter, with January the last month in which residual larger volumes from countries under investigation can be custom cleared. Sales from Japan, Egypt, Vietnam and India, all under the scope of the AD probe , have mostly stopped over the current quarter. Cold-rolled coil (CRC) imports are meanwhile on the rise, with 281,336t clearing in October, up by 33.4pc on the year and 53.5pc on the month. Taiwan was the top supplier with 64,208t, followed by Turkey and India with just over 40,000t each. The increase in Taiwanese imports, which are expected to rise further, have fuelled talks in the market of a potential AD investigation. Similarly, hot-dipped galvanised (HDG) imports rose by 60.1pc on the year to 802,688t, of which 270,226t was from Vietnam, representing a 279.1pc increase year on year. Market participants have expected a probe on Vietnamese HDG for a while, but following the safeguards review launch said that a reduction in quota volumes might hit downstream products such as HDG and CRC in particular. Plate imports have also nudged up, but more modestly, by 6.9pc on the year in October to 222,133t. Rebar and wire rod arrivals were up by 170.6pc and 46.5pc on the year, respectively. By Lora Stoyanova EU HRC imports t Oct-24 ±% Oct-23 Total 1,164,750 -24 Turkey 222,760 292 Japan 164,691 -38.2 Egypt 148,979 -19.7 Vietnam 144,512 -54.7 Taiwan 127,350 -54.5 Ukraine 103,003 69.5 South Korea 90,674 -45.9 Serbia 55,372 172.8 Australia 30,690 -62.4 Indonesia 29,140 41.5 — GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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