The EU Industrial Accelerator Act
The European Commission has published the Industrial Accelerator Act (IAA), the policy at the heart of the new “Made in Europe” initiative. The IAA will go through negotiations with the European Parliament and Council in the coming months.
What is the IAA?
The IAA represents a shift in EU industrial policy by adopting measures that were never contemplated before.
It introduces minimum EU-made content requirements for products benefiting from public funding For selected strategic sectors, notably in steel, cement, aluminium, automotive, and net-zero technologies, the IAA aims to incentivise that key manufacturing steps take place within Europe and that products are sustainable.
Why the IAA matters for businesses
The IAA could reshape how companies design, source, and manufacture their products by boosting supply chains where key manufacturing steps take place within Europe and meet robust green credentials. It presents both challenges and opportunities:
- New origin and traceability rules will require supply chain transparency.
- Some businesses will face operational and cost pressures as they shift sourcing to Europe.
- But early movers can unlock preferential access to EU procurement, increased resilience, and a competitive edge.
- Strategic sectors will see accelerated reshoring and new demand for EU‑made materials and technologies.
Organisations that act now will be best placed to protect market access, secure public funding opportunities, and build long‑term strategic advantage.
How Ricardo can help
Our experts are already supporting organisations to understand the implications of the IAA and prepare for what comes next.
We help businesses:
- Assess the impact of the new rules on products and operations
- Map and evaluate value chains against EU content thresholds
- Identify localisation pathways and compliance strategies
- Strengthen resilience while maintaining competitiveness
If you’d like support to understand the IAA's impact on your value chain and competitiveness, alongside how to minimise risk and maximise opportunities, we are here to help.
Our experts can also support with de-risking critical mineral supply chains including macroeconomic modelling to assess trade and industrial policies' impacts - find out more
Building sustainable supply chains for critical minerals
With extensive experience of international policy, regulatory frameworks and sustainability programmes, Ricardo's experts provide support throughout every aspect of the Critical Raw Mterials market.
Whether helping governments to refine legislation, guiding suppliers towards certification, or assisting procurement teams in sourcing materials, we offer the insights, tools and professional connections that organisations know they can trust.
“De-risking critical mineral supply chains is an imperative for governments and corporates alike, and can be achieved based on three pillars: circular economy, substitution technologies and strategic supply diversification.
”
Lorenzo Casullo
European Regional Director - Policy Strategy and Economics
