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US to require 55% federal-funded EV charger components locally made by July 2024

Peng Chen, DIGITIMES Asia, Taipei 0

Credit: DIGITIMES

The US Department of Transportation released the EV charging standards on February 15 to ensure a predictable charging experience. Following the regulation, all charging stations funded by the federal government must contain at least 55% of US-made components by July 2024.

The Biden administration aims to raise the percentage of EVs in new US vehicle sales to 50% by 2030. Building 500,000 charging stations across the nation before the same deadline has been part of the effort.

The Transportation Department announced the National Electric Vehicle Infrastructure Standards and Requirements on Wednesday, which covers plug types, charging speed and many other segments.

According to the standards, any charging station needs to have a minimum of four ports, whether they are DC fast chargers (DCFC) or AC chargers. Moreover, every DCFC port is required to adopt the Combined Charging System (CCS).

The rule also regulates that payment methods are contactless and do not require a membership. Moreover, each State applying for federal grants for installing charging stations must implement strategies to protect the facility's physical safety and cybersecurity.

Following the charging standards, the Transportation Department said it will soon launch the first round of the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. Cities, counties and local governments can apply for the fund to deploy EV charging infrastructure.

The agency said US$2.5 billion had been allocated over five years to support the program. About US$700 million will be available from fiscal years 2022 and 2023.

US EV sales projected to reach 1.8 million vehicles in 2023

The US will likely see its EV market scale up this year. According to DIGITIMES Research, the country's EV sales reached 900,000 cars in 2022, a 47.5% growth from 2021. EV analyst Jessie Lin said the number is projected to double to 1.8 million vehicles this year.

She added that Tesla will keep ramping up production at the gigafactory in Texas. Legendary automakers like Ford, General Motors, Toyota are all set to introduce more new EV models to the market in 2023. The tax credits provided by the Inflation Reduction Act will also help sales.

According to the US Bipartisan Infrastructure Law, federal infrastructure projects must use at least 55% of locally sourced and made construction materials. The Transportation Department just issued a temporary waiver for EV chargers to facilitate deployment.

According to the agency, starting on July 1, 2024, the cost of charger components manufactured in the US must reach at least 55%, or the project will not be eligible for federal grants. The components include steel, iron, manufactured products and construction materials.

Reuters reported that iron and steel comprise the most crucial parts of EV chargers, such as the internal structural frame, heating and cooling fans and the power transformer.

On the other hand, the Biden administration said Tesla plans to open 3,500 Superchargers along highways to non-Tesla customers by late 2024. The EV company has deployed the most fast chargers in the country.