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Green Machines | Battery health, EU ruling on recycled content and cuts to public charging VAT rates – Sustainability news March 2026

As the EU puts forward its plans to increase recycled content in new vehicles, a tribunal rules in favour of reduced VAT rates for public charging and a battery health study reveals reassuring results

Catherine Kent

Words by: Catherine Kent

Published on 3 March 2026 | 0 min read

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• Landmark ruling around VAT on public charging
• EU to mandate proportion of recycled content in new vehicles • EV Batteries last longer than you think • China ramps up solar energy production

Will VAT on public charging be cut to five per cent?

A tribunal has ruled VAT on public charging an electric vehicle should be set at five per cent to align with the rate applied to charging at home. Currently, charging an electric vehicle on the public network is subject to VAT at 20 per cent. However, existing VAT rules include a clause which allows small amounts of energy to qualify for the reduced ‘domestic’ rate in specific circumstances. Following tax advice from Deloitte, charging point provider Charge My Street successfully argued drivers using a public charger would fall below the threshold in HMRC’s small print and should therefore be charged at the reduced VAT rate. Does this mean VAT on public charging will be reduced? Not yet. HMRC has previously stated the reduced VAT rate doesn’t apply to public charging because the rules are intended for ongoing energy supply to an individual person at one premises such as a house or specific building. So, it is still possible HMRC could request an appeal, but this ruling marks a significant milestone. Charging is a key barrier to wider EV adoption and reducing the cost of using public infrastructure could help more drivers make the switch.

EU plans to mandate a minimum amount of recycled content in new vehicles

The EU is proposing a minimum requirement for recycled content in new vehicles. It already has rules to limit the waste produced during vehicle disposal, including a mandate on the minimum proportion of a vehicle which can be reused or recycled. However, it has now published a provisional agreement on the End of Life Vehicle Regulation (ELVR) which plans to take this a step further. According to a summary document provided by Mark Victory of the Independent Commodity Intelligence Services (ICIS), the EU is proposing new cars, vans and motorcycles should have a minimum of 15 per cent recycled content within six years of the regulation becoming law. This would then rise to 25 per cent after 10 years. The rules would also stipulate at least 20 per cent of this recycled content should be sourced from end-of-life vehicles. The aim is to force manufacturers to design for circularity and reduce the reliance on resource-intensive raw materials.

Batteries last longer than you might think

According to analysis by the Battery health specialists Generational of over 8,000 batteries from pure electric and plug-in hybrids vehicles the average battery health was 95.15 per cent across all vehicles tested. The analysis included vehicles from zero to 12 years old with up to 160,000 miles on the clock. The study found mileage was not a reliable predictor of battery health, as vehicles with over 100,000 miles often returned battery health between 88 and 95 per cent. Meanwhile, vehicles between eight and nine years old had a median capacity of around 85 per cent, which comfortably exceeds most manufacturer battery warranties. This is positive news and suggests batteries are likely to last longer than the lifespan of the vehicle. However, the report also showed more variance in results as battery age increased and across different makes and models, highlighting the importance of battery health assessments.

China ramps up solar energy production

According to a report in the Financial Times, recent data showed China’s emissions from energy and industry decreased by 0.3 per cent in 2025 despite an increase in energy consumption overall. Meanwhile, clean power generation grew from 37 per cent in 2024 to 40 per cent with investment in solar power helping to drive the increase. While this is good news, China remains the world’s largest emitter of CO2 and is heavily reliant on coal, so there is still a long way to go if it is to meet its goal of net zero by 2060.

Previous sustainability news:

• Green Machines – sustainability news February 2026 | Government push to go electric, BYD's ‘Super Hybrids’ and more!


• Green Machines – sustainability news January 2026 | Speeding the transition to electric

• Green Machines – sustainability news December 2025 | Mazda stores CO2 from exhaust gasses and BMW aims to cut emissions, but will biofuel save the car industry?

• Sustainability newsletter – November 2025 | Are criminals a growing threat to EV charging, which electric cars have we driven this month and what do battery passports look like?

• Sustainability newsletter – October 2025 | September’s new car registrations, more renewable energy and Chinese brands for the win

• Sustainability newsletter – September | SUVs in the crosshairs but can BMW’s sustainable new iX3 help counter the stereotype?

• Sustainability newsletter – August 2025 | Volvo talks carbon footprints, Vauxhall campaigns for accessible on-road charging and the SMMT calls for energy grid reform

• Sustainability newsletter – July 2025 | Kia helps clean up the oceans, BMW’s natural ‘carbon fibre’ and Volvo commits to using recycled steel

• Sustainability newsletter – June 2025 | Reusing old electric car batteries, the antithesis of the Tesla Cybertruck and applications open for Edie’s Net-Zero Awards

•Sustainability newsletter – May 2025 | Reducing emissions, creating a circular economy and the King’s Award for Enterprise, but are commercial vehicles being left behind?

• Sustainability newsletter – April 2025 | Car brands fined for hiding data on recyclable material in their vehicles and a potential upside to American tariffs

• Sustainability newsletter – March 2025 | Climate crisis, policy proposals and big changes at Bentley – is it too late for the car industry to become more sustainable?

• Sustainability newsletter – February 2025 | Transatlantic divide on sustainability grows, UK charging and battery manufacturing gets a boost and Audi in a muddle

• Sustainability newsletter – January 2025 | 2025 looks set to be the year of the affordable EV

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