News Summary

The European Commission has revised its original plan to ban the sale of gas-powered cars by 2035, allowing 10% of new car sales to be hybrids or other vehicles with carbon offsets. This decision has raised concerns among electric vehicle (EV) startups and investors, who fear it could slow down Europe’s transition to clean energy and affect its competitiveness in the global EV market. The policy change is part of the broader ‘Automotive Package,’ which aims to balance traditional carmakers’ needs with the push for electrification. Despite the softened targets, the Commission has launched the ‘Battery Booster’ strategy, investing €1.8 billion in developing a European battery supply chain. While this initiative is welcomed by startups like Verkor, concerns remain about the EU’s commitment to decarbonization. The debate reflects the tension between economic realities and the urgency for cleaner technology, with implications for Europe’s leadership in the EV industry.