The United States releases new policies for electric vehicle charging piles, which may disrupt the industrial structure

After eight months of debate, on February 15, the U.S. government officially released the much-anticipated final regulations for the U.S. electric vehicle charging pile network.

The U.S. government hopes that the new regulations will usher in a major shift in the U.S. industry landscape and give consumers unrestricted access to an expanding network of electric vehicle charging stations across the United States, including Tesla's Superchargers.

Image source: Screenshot of the White House official website

Charging piles must be made in the United States

According to the climate change response plan formulated by the US President Biden's administration, half of the new cars sold in the United States will be electric vehicles by 2030, and the charging network is a core part of this plan. Supporters have said that the minimal number of charging stations on U.S. roads hinders the spread of electric vehicles and dilutes the positive impact on the environment.

In this regard, Biden has previously promised to build 500,000 electric vehicle charging piles in the United States by 2030 and provide $7.5 billion in federal funding support. According to the White House, there are currently more than 3 million electric vehicles and more than 130,000 public charging piles in the United States.

The latest regulations require that if companies want to use $7.5 billion worth of federal funds to build a charging pile network, the charging piles must be manufactured in the United States and need to adopt the main American charging connector standard, known as the "Combined Charging System" (Combined Charging System). , referred to as CCS), and drivers do not need to use multiple apps or accounts to charge, just use one identification method on all chargers. In addition, all charging stations need to be working 97% of the time.

Electric vehicle chargers require steel for some of their most critical components, including internal structural frames, heating and cooling fans, and power transformers. Chargers with cabinets require even more steel, and in some cases the cost of steel can be as much as 50% of the total cost of the charger. Just before the new regulations were released, manufacturers warned that if the new regulations prematurely emphasized quotas for domestically produced parts, it would slow down the expansion of charging networks.

Under the 2021 bipartisan infrastructure bill, federal infrastructure projects such as electric vehicle charging stations must source at least 55% of their construction materials, including steel, from domestic sources and must be manufactured in the United States. However, the U.S. Department of Transportation requires "tolerance" for electric vehicle charging stations, proposing that starting in July this year, at least 25% of the total cost of charging piles will come from U.S.-made components, and then rise to 55% by January 1, 2024.

The new regulations released on February 15 did not adopt the above two-step proposal, and decided to implement a 55% cost requirement starting from July 2024. Charging piles must be assembled in U.S. factories, and any steel charging pile casing must be manufactured in the United States. ,Effective immediately.

U.S. states and companies warned in comments to the U.S. Department of Transportation that global demand for electric vehicle chargers is putting pressure on supply chains, making it difficult or even difficult to meet U.S. manufacturing standards and speed up the construction of new chargers. It is impossible.

Some are happy and some are worried

Some people are happy and some are worried about this policy.

First of all, for American electric vehicle consumers, the new regulations will theoretically bring great convenience. Colleen Quinn, director of the National EV Charging Initiative, said consumers who drive electric vehicles "can now be sure that they can recharge their cars reliably, conveniently and potentially know the cost in advance." There are currently multiple complaints about poor service from the toll system.

For electric vehicle charging companies such as Electrify America, ChargePoint and EVGo, the deployment of charging piles can be accelerated with the support of federal funds. The installation and maintenance of charging stations requires trained electricians, which may create more high-paying jobs.

Furthermore, for automakers, the introduction of more charging stations will promote the popularity of electric vehicles in the United States, which may boost traditional automakers such as Ford Motor Co., General Motors, and Volkswagen, as well as startups such as Rivian and Lucid of sales.

Additionally, service areas are likely to see an influx of investment as companies build charging stations along high-traffic routes. There are also positives for BP and Hertz, as they are expanding charging services at gas stations and rental car locations respectively. Service area operators such as privately held Pilot Co and Travel Centers of America may also benefit.

Of course, the new regulations will also bring certain challenges to some companies. While charging companies have received financial support in their expansion efforts, only a handful of companies told the Biden administration before the new rules were released on February 15 that they could meet the "Buy American Parts" standards within the proposed timeframe.

Moreover, some analysts say that requirements for locally produced parts will also harm overseas suppliers, but the Biden administration also hopes to force overseas suppliers to open factories in the United States.

Business response

The first tranches of federal funds will be released to states in the coming weeks, and companies like Tesla, EVgo and ChargePoint Holdings will have to compete for funds from state governments. According to the U.S. government, some companies are already beginning to respond.

Among them, the most attention-grabbing move is that of Tesla, the leader of electric car manufacturers. The White House said Tesla will open its Supercharger network in the United States to other brands of electric vehicles, opening 3,500 new and existing Superchargers along highways and 4,000 to non-Tesla customers by the end of next year. Low-speed charging stations located near hotels, restaurants, etc.

The new rules will allow Tesla to keep its unique connector but must add a permanently attached CCS connector or adapter to charge CCS-compliant vehicles. Tesla told the Department of Transportation that the plan was "aggressive" and "may result in an insufficient number of available compliant charging stations given the speed and scale of deployment," records show.

Image source: Screenshot of Biden’s Twitter

Biden said on Twitter: "As we build our electric vehicle charging network, we must ensure that as many chargers as possible serve as many drivers as possible. To do this, Musk will open Tesla to all drivers A large part of the charging network. This is a big deal and has far-reaching consequences.” Musk responded to Biden on Twitter: “Thanks, Tesla is happy to support other electric vehicles through our Supercharger network.”

Analysts believe this could help turn Tesla charging stations into shared "gas stations" for the electric vehicle era. However, the opening of Tesla's charging network also has the potential to weaken the competitive advantage of its products, because for now, Tesla has the largest network of high-speed Superchargers in the United States, and Tesla owners have exclusive access.

On the day the new regulations were released, the Australian company Tritium also announced that it would add more than 250 jobs at its charging pile manufacturing plant in Tennessee. The White House said Germany's Siemens recently announced the establishment of its second charging equipment manufacturing plant in the United States in Texas, while South Korea's SK Signet will also open a manufacturing plant in Texas.

Additionally, welding giant Lincoln Electric announced a new fast charger production line, while Blink Charging will expand its charger manufacturing plant in Maryland and plans to build another facility this year.