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
As a concrete example, we are helping a private client in the automotive sector in understanding:
- What is the current European content of components (battery components, green steel, and Autonomous Vehicle (AV) components used by European truck manufacturers?
- How is this expected to develop in future in the absence of further policy intervention?
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
