Democratic state attorneys general in the United States have indicated that the Trump administration's proposed increase in the "Buy American" standards for electric vehicle charging equipment could hinder the implementation of a $5 billion federal funding plan.
According to the proposal, the U.S. Department of Transportation plans to raise the localization requirement from 55% to 100%. Attorneys general from 20 states have pointed out that fully domestically manufactured charging equipment does not currently exist in the market. This move will impede the progress of the project and delay the construction of the national charging network.
The plan is part of the 2021 Infrastructure Law and aims to support the expansion of electric vehicle charging infrastructure. Previously, a federal judge in the U.S. ruled that the government's pause of this plan was unlawful.
Industry experts have noted that given the reliance on overseas supply for critical components, overly high localization requirements will increase costs and suppress investment, thereby affecting the proliferation of electric vehicles.
