The EU is set to formally unveil the draft of the "Industrial Decarbonisation Accelerator Act" (IDAA) in the near future. This new policy is widely regarded by the 

industry as one of the most restrictive market access systems in the past decade. Its core objective is not merely environmental protection and carbon reduction 

but rather to promote the rebalancing and strategic autonomy of EU industry by strengthening "local content requirements" and "technological localization 

cooperation."

For Chinese energy storage enterprises, this represents not only new challenges but also a watershed moment for industrial restructuring and the upgrading of 

globalisation strategies.

I. Policy Core and Potential Impact: Comprehensive Tightening from Market Access to Technological Influence

According to preliminary leaked points from the draft, the IDAA will require that a certain minimum proportion of core components, materials, and manufacturing 

labour for all energy storage, battery, and related system products sold in the EU market must originate locally within the EU. Furthermore, if companies refuse to 

share technology or are unwilling to cooperate with local enterprises, the EU may deny them market access qualification or exclude them from public procurement 

and subsidy policies.

This policy echoes the previous "Net-Zero Industry Act" and the "Critical Raw Materials Act," reflecting the EU's dual intent to "de-risk from China" and "rebuild 

localised supply chains." Its core logic is to bind the green transition together with local industrial revival in the name of industrial security.

The impact on Chinese energy storage enterprises will mainly focus on three areas:

Rising market access barriers: Business models solely based on exporting complete energy storage systems or components will no longer meet EU requirements. 

Future projects must possess proof of "European manufacturing" or "European assembly."

Increased pressure for technological cooperation: The EU may require Chinese enterprises to partially disclose technology or engage in joint ventures in key 

technological areas (such as cell manufacturing, system integration algorithms) in exchange for market access.

Forced adjustment of supply chain: The previous model primarily based on domestic production and complete system exports will face multiple barriers in 

tariffs, certification, and subsidy policies, forcing enterprises to relocate part of their production capacity and supply chain links to Europe.

In other words, the IDAA is not just a regulation; it is a strategic move by the EU to compete for industrial dominance and standard-setting power in the era of the 

green economy.

II. The Response Logic for Chinese Energy Storage Enterprises: From Export Models to Local Ecosystems

Faced with this increasingly stringent regulatory environment, the response of Chinese energy storage enterprises cannot stop at "finding agents and setting up 

sales offices." Instead, they must undertake strategic restructuring in three areas: organisational structure, supply chain systems, and technological models.

(1) Establishing a Dual-Pronged Layout in Europe: "Light Asset + Local Manufacturing"

The most direct response is to meet the EU's "local content" requirements through localised manufacturing. This does not mean simply relocating factories but 

should adopt a combined strategy of "light asset operation + local manufacturing cooperation."

Light asset factory setup: Establish assembly lines, system integration centres, or PACK factories by cooperating with existing European manufacturers or local 

governments. The focus is not on production scale but on obtaining the "EU origin" certification.

Foundry and OEM cooperation: Reach OEM agreements with local European enterprises possessing the necessary certifications, allowing them to perform final 

assembly and testing to legally obtain the EU origin label.

Regional cluster layout: Prioritise in Eastern Europe (Poland, Hungary, Czech Republic) or Southern Europe (Spain, Portugal). These countries have lower costs, 

friendly policies, and have already established a foundation for new energy industry chains.

Through this layout, Chinese companies can achieve a compromise solution of "core technology in China, certification in Europe," preserving both technological 

and cost advantages while meeting regulatory requirements.

(2) Trading Technology for Market Access, Building a Cooperative Entry Model

Under the EU policy framework, enterprises refusing technology transfer may be excluded from subsidy lists. Therefore, Chinese enterprises need to proactively 

shift their competitive strategy from "closed output" to "open cooperation," forming a new balance of trading technology for market access.

Establishing joint R&D centres: Conduct research in areas such as energy storage systems, safety standards, and recycling jointly with European universities or 

research institutions, forming a technological cooperation path of "local R&D - global transformation."

Joint ventures and technology sharing: By setting up joint ventures, partially open non-core technologies (such as battery management system software, structural 

design) to local partners, both meeting policy requirements and maintaining the confidentiality of key technologies.

Participating in EU standard setting: Actively join European energy storage standard organisations (such as EASE, ETIP SNET) and participate in the formulation of 

technical specifications and certification systems to enhance influence.

This cooperative model is not just a passive response but a strategic embedding into the European new energy industry chain ecosystem, transforming Chinese 

enterprises from "suppliers" to "participants" and "partners."

III. Dual Upgrading of Supply Chain and Brand: Compliance as the Threshold, Brand as the Bridge

One of the core purposes of the IDAA is to enhance the resilience of the EU's internal industry. Therefore, if Chinese enterprises want to stabilise their position 

within this system, they must shift from being "price-driven" to "brand and trust-driven."

(1) Supply Chain Localisation and Compliance: Establishing a "Green Origin System"

Chinese energy storage enterprises should accelerate the establishment of a full-chain traceability system that complies with EU standards:

Raw material certification: Ensure that the sources of cell materials (such as nickel, lithium, cobalt) meet EU traceability and ESG requirements.

Carbon footprint disclosure: Establish a product carbon footprint database according to EU CBAM (Carbon Border Adjustment Mechanism) standards and obtain 

third-party certification.

Integration into recycling systems: Cooperate with local European recycling companies to establish battery recycling and secondary use systems, meeting circular 

economy requirements.

This not only addresses compliance requirements but will also become a new threshold for brand competition.

(2) Brand Localisation: From "Made in China" to "Powered by China"

Faced with the dual scrutiny of European consumers and policymakers, Chinese enterprises need to reshape their brand narrative.

Strategies include:

Green narrative: Emphasise the contribution of Chinese technology to Europe's carbon neutrality goals, shifting the brand from "cost-oriented" to "sustainable 

innovation."

Employment and community engagement: Increase the proportion of local employees, support local community green projects, and build an image as a "local 

European partner."

Role as an energy security partner: Position themselves as "enablers" of the EU's energy transition, rather than "external competitors," to soften political risks.

The core of this transformation is moving from product output to the output of brand value and social responsibility.

IV. Strategic Foresight: Building a New Globalisation Model of "China-EU Dual Circulation"

The IDAA signifies a deep adjustment in the global new energy trade landscape. For Chinese energy storage enterprises, redefining "going global" has become 

imperative.

Transition from export-oriented to layout-oriented: Future competition will no longer be about price but about ecosystems. Enterprises need to form a full-chain 

localised structure in Europe encompassing R&D, manufacturing, sales, and service.

Transition from supplier to system solution provider: Enhance added value through digital management platforms, energy management systems (EMS), and energy

 storage data services, escaping low-price competition.

Transition from passive response to active shaping: Engage early in policy communication and industry organisations, promote the alignment of "China-EU dual 

certification standards," and enhance strategic resilience.

V. Conclusion: Finding Certainty Amid Challenges

The introduction of the "Industrial Accelerator Act" is a self-defence mechanism by the EU in the global green industry competition and an institutionalised 

constraint on external dependencies. For Chinese energy storage enterprises, it is both pressure and an opportunity – forcing the industry to shift from an output 

model to a value co-creation model, and from a manufacturing powerhouse to a brand powerhouse.

On the future track of global green transformation, the ability to truly achieve "establishing oneself through technology, establishing the heart through brand, and 

establishing a stance through cooperation" will determine the position of Chinese energy storage enterprises in the new round of global industrial restructuring.

The rules are changing, but innovators always find a way.