IRIS Highlights - May 2024

IRIS Highlights - May 2024

KEY NEWS 1/4 — European Union

R(EU) 2024/1257 New Euro 7 Regulation

The European Union has published the new Euro 7 regulation in its official journal. This regulation establishes common technical requirements and administrative provisions for the type-approval of emissions and market surveillance of motor vehicles, systems, components, and separate technical units.

Euro 7 addresses CO2 and other pollutant emissions, fuel and electric energy consumption, and battery durability. Additionally, it introduces rules for emission type-approval, conformity of production, in-service conformity, and monitoring of on-board systems. Security measures to limit tampering and ensure cybersecurity are also established.

Key Implementation Dates

The regulation will apply from November 29, 2026, for new types of vehicles in categories M1 and N1 and their components, systems, and technical units. For new vehicles in these categories, the date is November 29, 2027.

For vehicles in categories M2, M3, N2, N3, O3, and O4, and their components, systems, and technical units, the regulation will apply from May 29, 2028. New vehicles in these categories must comply with the regulation from May 29, 2029.

Additionally, the regulation sets specific dates for new types of tires: July 1, 2028, for class C1, April 1, 2030, for class C2, and April 1, 2032, for class C3.

Small-volume manufacturers have extended deadlines. Vehicles in categories M1 and N1 constructed by these manufacturers must comply with the regulation by July 1, 2030, while vehicles in categories M2, M3, N2, and N3 have until July 1, 2031.

Impact on the Automotive Industry

Euro 7 represents a significant effort to reduce emissions and improve energy efficiency in the European automotive sector. The regulation affects not only car manufacturers but also producers of related components and systems, who will need to adapt their products to meet the new requirements.

This regulation reflects the EU's commitment to sustainability and the fight against climate change by setting stricter standards for vehicle emissions. The implementation of Euro 7 is expected to drive innovation in emission control technologies and the transition to cleaner, more efficient vehicles.

KEY NEWS 2/4 — European Union

R(EU) 2024/1252 - New EU Regulation to Ensure Sustainable Supply of Critical Raw Materials

The European Parliament and the Council have enacted Regulation R(EU) 2024/1252, a framework aimed at ensuring a secure and sustainable supply of critical raw materials. This regulation also amends Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724, and (EU) 2019/1020, and is relevant for the European Economic Area (EEA).

The main objective of this new regulation is to improve the functioning of the European internal market by establishing a framework that ensures a competitive, secure, resilient, and sustainable supply of critical raw materials. The regulation promotes sustainability, efficiency, and circularity throughout the value chain.

Key Objectives

Regulation R(EU) 2024/1252 sets several key goals:

  • She Value Chain: By 2030, the European Union aims to significantly increase its capacities for extraction, processing, and recycling of strategic raw materials. The targets include:
    • Extraction capacity: Produce at least 10% of the Union's annual consumption of strategic raw materials.
    • Processing capacity: Produce at least 40% of the Union's annual consumption of these materials.
    • Recycling capacity: Produce at least 25% of the recycling capacity volume.
  • Diversification of Imports: The EU aims to diversify its sources of imports to ensure that, by 2030, the annual consumption of each strategic raw material can rely on multiple third countries or overseas countries and territories (OCTs). No third country should account for more than 65% of the Union's annual consumption of any strategic raw material.
  • Creation of the Critical Raw Materials Board: This board will advise the European Commission on the implementation of new actions to achieve the established objectives.

Entry into Force and Application

The regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union. However, Articles 40 and 41, which address the circularity requirements for permanent magnets, will apply from May 24, 2029.

Market Impact

This new regulation underscores the EU's commitment to sustainability and resilience in its critical raw materials supply chain. The regulation is expected to drive innovation and efficiency in the extraction, processing, and recycling of these materials, strengthening the European Union's position in the global market.

Regulation R(EU) 2024/1252 is a significant step towards the security and sustainability of critical raw materials, essential for numerous industries and emerging technologies.

KEY NEWS 3/4 — European Union

European Council Greenlights EU Artificial Intelligence Act

The European Council has given the green light to the much-anticipated Artificial Intelligence (AI) Act of the European Union, marking a significant milestone in global AI regulation. This legislation, known as the "AI Act," establishes the first comprehensive set of worldwide rules on AI.

The new law takes a risk-based approach, prioritizing stricter regulations for high-risk AI systems that may pose societal risks. Its main objective is to promote the development and use of safe and trustworthy AI across the EU while ensuring that fundamental rights are respected and fostering innovation.

The AI Act applies to all areas under EU jurisdiction, with some exemptions for military and defense and research purposes. It categorizes AI systems into different risk levels and bans practices such as social scoring and predictive policing based on profiling.

To ensure enforcement, new governing bodies will be established, including an AI Office, an expert panel, and a stakeholder advisory forum. Significant penalties will be imposed for infringements, with fines based on the company's global annual turnover.

The AI Act also requires impact assessments on fundamental rights and increased transparency for high-risk AI systems. This law aims to provide an innovation-friendly legal framework, including provisions for regulatory sandboxes to test new AI systems.

Regarding motor vehicles, the future law will contain amendments aimed at harmonizing requirements with several related regulations. The AI Act will enter into force 20 days after its publication and will apply two years later, with some exceptions.


China Proposes New Standard for DC Charging Systems for Electric Vehicles

The Standardization Administration of China (SAC) has announced the formulation plan for the GB/T 18487.5-202X standard, which addresses the conductive charging system for electric vehicles, specifically in Part 5: Direct Current (DC) charging system. This new standard will focus on the general requirements and communication protocols needed for upgraded DC charging systems.

Initially, these requirements were planned to be incorporated as amendments to the existing standards GB/T 18487.1-2023 and GB/T 27930-2023. However, due to the increasing demand and rapid evolution of the new energy vehicle (NEV) market, it has become necessary to develop a comprehensive new standard.

Market Demands

As NEVs continue to gain market share, consumers are demanding new features for electric vehicle charging, such as high-power fast charging, reserved charging, and instant charging. In response to these demands, electric vehicle charging systems and DC charging facilities are being comprehensively optimized and upgraded.

Content of the New Standard

The GB/T 18487.5-202X standard specifies several key requirements:

  • General Requirements: Definition of the basic parameters for the operation of DC charging systems.
  • Control Pilot Circuits: Standards for circuits that manage communication between the vehicle and the charger.
  • Charging Control Process: Guidelines for managing the charging process, from connection to completion.
  • Charging Connection Control Timing: Rules on the sequence and timing of charging operations.

Additionally, the standard includes measures for insulation monitoring, protection, and power outage prevention. The new functions enabled by the control pilot circuit will allow for advanced charging, such as high-power, instant, and reserved charging.

To ensure compatibility with existing DC charging facilities, the standard retains content from the 2015 edition related to the DC charging control pilot circuit and control principle.

Implications for the Future

This new standard represents a significant step towards modernizing the electric vehicle charging infrastructure in China, adapting to the demands of a rapidly expanding market and evolving technology. The SAC's initiative aims not only to improve the efficiency and safety of charging systems but also to foster consumer confidence in NEV technology.

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