Electric vehicle chargers in US face a slowdown as regulations to comply with Made in America

New York: To comply with the requirements of the Made in America laws, a $7.5 billion federal program designed to speed up the electric vehicle industry, producers and operators of electric vehicle chargers in the US is preparing for a slowdown in production and distribution.

Electrify America, ChargePoin, Tesla, and others are some of the major manufacturers and network operators of EV charging stations.

In February, the White House laid out the requirements of the program, which is part of President Joe Biden's efforts to build an electric-friendly US highway system by 2030.

The EV charging industry has been caught unprepared by the implementation of requirements to immediately begin charger assembly at American factories and use locally-made iron or steel cases.

According to company executives and state officials who will manage the federal funds, there is currently a lack of domestic production capacity, especially high-speed chargers, and that the enforcement of the requirements will slow production and increase costs.

Aatish Patel, co-founder of XCharge North America, said everyone was hoping that there would be a waiver on Buy America and Made in America. As quoted by Reuters, that throws a wrench in a lot of people's plans.

Some two-thirds of federal funding will be allocated to states and the rest to cities, counties and Native American tribes.

The initial $1.25 billion round of Biden's funding will be allocated to highway fast chargers, with later rounds covering slower chargers.

There is a process to request a deferral of the Made in America rules, but it is not known if this will be allowed by the government, according to EVgo, which operates more than 850 fast-charging locations.

Jonathan Levy, EVgo Chief Commercial Officer, said there was a risk that 2023 projects could wait until the supply chain catches up, though it is difficult to plan for the future.

Is it possible to get a waiver? According to Reuters, he said.