As the country comes to the realization that a future of electrified mobility is crucial to mitigating the effects of climate change, government leaders and the electric vehicle (EV) industry have made it their mission to build a network of 500,000 EV chargers across America.
At the same time, the past year has demonstrated how disruptions in globally interconnected supply chains can lead to severe bottlenecks and slow production. The EV charging industry is not immune to these conditions. In order to achieve the ambitious electrification goals set by our elected officials and business leaders, EV charging companies must ramp up their domestic manufacturing capabilities to ensure they can meet the demand, regardless of global factors.
There’s no better time than now to increase American manufacturing. With the Biden Administration’s Infrastructure Investment and Jobs Act (IIJA) earmarking $7.5 billion to build a nationwide charging network, there is more investment in the space than ever before. However, in order to qualify for these federal funds, EV charging manufacturers must meet the “Buy America” requirements – standards that call for equipment and projects to use American-made material and products, as well as be manufactured domestically. While domestic production of EV chargers holds much promise in solving supply chain concerns, this requirement also presents several challenges.
When considering the “Buy America” requirements for EV chargers, two provisions are most relevant. First, all steel in a finished product must be sourced locally. Secondly, under current criteria as clarifying language is pending, at least 55 percent of a finished product must come from the U.S.
Generally, meeting the steel requirement is not a challenge for EV charging manufacturers as chargers do not require large amounts of steel and steel can be locally sourced without undue burden. However, the larger challenge for EV charging manufacturers is sourcing domestically made chips, as most chip manufacturing is done offshore and imported to the U.S. From microprocessors to Wi-Fi and cellular modem chips, these necessary components are hard to source domestically, presenting a significant roadblock for EV charging manufacturers looking to meet the “Buy America” requirements.
In addition to the challenges presented by the “Buy America” requirements, there are also logistical challenges that come with relocating a manufacturing process, that was previously done overseas, entirely to the U.S.
In other countries, robust manufacturing corridors exist – areas of production where the various parts of a product are all sourced near one another – that help reduce the time and cost it takes to assemble critical components. However, in recent decades many of these components have been imported from overseas, and the U.S. has far fewer manufacturing corridors. This means domestic manufacturing facilities will have to re-invent their processes and supplier relationships to better centralize them and avoid the expenses and pollution incurred by shipping parts across the country.
As we transition to this new age, EV charging manufacturers are facing a plethora of challenges as well as unprecedented/exciting growth opportunities. From adhering to the “Buy America” procurement requirements to working out the logistics of a new supply chain, manufacturers have a lot to overcome, all while trying to keep up with the demand of a growing population of EV owners.
Right now, the biggest hurdle facing domestic EV charger manufacturing is time. In order to tap into the federal funds made available by recent legislation, manufacturers must build up domestic capabilities and expertise in new areas, from sheet metal fabrication to PVC manufacturing, quickly.
With these challenges, it may seem daunting to make the transition to domestic manufacturing. However, Blink Charging, a leader in the EV charging industry for close to 14 years, has long been aware of these concerns and is taking steps to overcome them.
In June of 2022, Blink acquired SemaConnect, a leading provider of EV charging infrastructure solutions in North America with a state-of-the-art manufacturing facility in Maryland. This acquisition brought the complete design and manufacturing processes of Blink’s EV chargers in-house, allowing the company to comply with the “Buy America” provisions in federal law. The acquisition also marks Blink’s emergence as the only EV charging company to offer complete vertical integration – from research & development and manufacturing to EV charger ownership and operations – creating unparalleled opportunities for the company to control its supply chain and accelerate go-to-market speed while reducing operating costs.
In addition, Blink recently announced its commitment to establish a new manufacturing facility in the United States, which will further increase its charger production capacity. While the search for the facility’s location is still ongoing, the plant will offer 200,000 square feet of space with the latest technology to manufacture both DC Fast Charging (DCFC) and Level 2 Chargers.
With one facility already up and running and another on the way, Blink is leading the charge in domestic manufacturing of EV charging infrastructure in the U.S.
Harjinder Bhade is Chief Technology Officer at Blink Charging
It’s well understood that driving electric is more efficient with a lower cost-per-mile than driving internal combustion vehicles. That’s especially true if you're charging an EV up at home. But what if you need to use public chargers on the road or live in an apartment where a commercial pay-per-use charger is your only option?
The cost can vary significantly since commercial chargers use different methods of payment. For example, many providers charge for the time it takes to charge a battery rather than the kWh of electricity delivered. This would be like gasoline stations charging for the length of time a nozzle dispenses gas in the fuel tank, not by the number of gallons of gas pumped. A few providers charge a per-session fee or require a monthly or annual charging subscription. While many public chargers at businesses and parking lots remain free of cost to EV drivers, that is changing over time.
When you pay by the minute, charging cost is influenced by an EV battery’s state of charge, ambient temperature, and the size of the EV’s on board charger. Different size chargers can mean a big difference in the cost of a charge even though the same number of kW hours are delivered. For example, earlier Nissan LEAFs had a 3.6 kW (3.3 kW actual output) on board charger while later ones had an updated 6.6 kW (6.0 kW output) version. Thus, it takes almost twice as long to charge an earlier LEAF at double the expense than later ones, even though both have the same 30 kWh battery. Many EVs now come standard with a 6.6 or 7.2 kW charger. When considering buying or leasing an electric model, keep in mind that a more powerful on-board charger means quicker and potentially more cost-efficient charging.
It’s an interesting bit of science that while charging an electric vehicle, the rate of charge isn’t linear but rather decreases as a battery approaches full capacity. If an EV has a lower state of charge (SOC) at the beginning of a charging session, charging occurs at its maximum rate, such as 3.3 kW, 6.6 kW, 7.2 kW, and so on. As the battery approaches 100 percent SOC, charging can slow to a trickle. The last 20 percent of charge can sometimes take as long as the initial 80 percent. To be most cost efficient, it’s recommended to only charge to 80 percent full capacity when using a public charger, especially one that includes time-based pricing.
For a charging cost comparison, let’s look at charging an EV with a 40 kWh/100 mile rating and a 50 kW on board charger. At a Level 3 charging station it would take about 48 minutes to get an additional 100 miles of range and cost between $6.24 to $16.80, depending where you did the charging. With a 350 kW fast charger this would take about 7 minutes and cost between $1.82-$6.93 to add 100 miles. This compares to $10.00-$13.33 for a gasoline vehicle that gets 30 mpg and fuels up at $3.00 to $4.00 per gallon. This shows the need for fast charging when away from home and charging with time of use chargers, and more importantly, the need for pricing solely on a per kWh basis.
While kWh charging is fairer to the consumer, some companies prefer time-based charging because the longer customers are connected, the more profit is made. However, public charging could be moving from time-to-charge to the kWh charge model. This will put the energy cost of EV operation in line with that of gasoline vehicles where fueling cost is determined by the cost of a gallon of gasoline, not the time it takes to refuel. Clearly, this change is needed.
New rules in California will eventually ban public charging operators from billing by the minute and require the fairer billing by kWh. The ban will apply to new Level 2 chargers beginning in 2021, and to new DC fast chargers beginning in 2023. Chargers installed before 2021 can continue time-based billing until 2031 for Level 2 chargers or 2033 for DC fast chargers.
The new rules do not prohibit operators from charging overtime, connection, or parking fees, or fees for staying connected after reaching 100 percent SOC, providing they are disclosed. Electrify America already charges 40 cents per minute if your vehicle is not moved within the 10 minute grace period after your charging session is complete. It remains to be seen whether more states will follow California’s lead. Laws will have to be changed in about 20 states where only regulated utilities can presently sell electricity by the kWh.
Charging providers like Tesla and Brink presently charge by the kWh in states where it’s allowed. For example, Tesla charges $0.28 per kWh while Blink charges $0.39 to 0.79 per kWh, depending on location and user status. California regulations require Tesla and others to show the price per kWh and a running total of the energy delivered, just like a gas pump.
Other charging considerations can affect the actual long-term cost of operating an EV. These include lower charge pricing and discounts that come with subscriptions, free charging incentives that accompany a vehicle purchase (like the first 1000 kWh provided free or 100 kWh of free charging per month), or if a charger is shared with another user. For Teslas, free unlimited Supercharger access has often come with the purchase or lease of a new Tesla model.
While EV technology is now relatively mature, pricing electric vehicle use is evolving. Hopefully, competition and a bit of government regulation should ultimately make it as understandable as it is now for gasoline vehicles.
There are challenges ahead even as electric pickups are poised to enter a potentially enthusiastic market. Those challenges could mean a more gradual market trajectory than that of electric sedans and SUVs, which have already taken quite some time to gather momentum. For example, cars and SUVs used for commuting or running errands are typically driven less than 40 miles daily, with occasional trips of several hundred miles with passengers. That’s a reasonable and flexible duty cycle for electric passenger vehicles. It’s different for trucks.
With the exception of work trucks in urban areas, pickups in many rural areas travel hundreds of miles every day without refueling. That’s not an issue for conventionally powered pickups with their considerable driving range. It could be for coming electric pickups since their battery range is about half that of most full-size gas pickups. When conventional pickups do need to refuel, it takes but a few minutes to fill up with gasoline compared with the hours required for electrics. Realistically, it's difficult to see electric pickups meeting the duty cycles of work trucks like these until fast charging becomes widespread, especially in rural areas.
Towing presents additional food for thought. It’s well-known that fuel economy, and thus range, is reduced when conventional vehicles tow trailers, boats, or any load. Range is impacted more dramatically in electric vehicles, a fact that could make electric pickups less desirable for towing a boat or heavy load any significant distance since charging would likely be required every couple hundred miles. Illustrating the challenge is that towing a 5000 pound trailer with a Tesla Model X or Audi e-tron has been shown to result in a range reduction of up to 40 percent. Increasing range by adding batteries in an electric pickup may bring longer range, but it also means reducing payload and towing capacity pound for pound.
Looking at the demographics of pickup owners and comparing this with available charging stations presents a stark reality. The 13 states where pickups represent 25 percent or more of new vehicle sales have about 2600 public charging stations, less than 10 percent of all public charging stations in the country. That’s quite a disconnect. These are typically large states where long distance travel is the rule. This underscores the importance of charging opportunities and the formidable challenges electric pickups may face in areas where charging infrastructure is behind the curve.
Another challenge is maintenance. Even though electric pickups require significantly less maintenance than their gasoline or diesel counterparts, there are times when EV-specific service will be required. While the usual tire, brake, and fluid maintenance can be performed by mainstream service providers, electric pickup manufacturers must provide for other potential servicing involving an electric drivetrain, on-board electronics, and the many other controls and systems unique to an electric vehicle. That’s not a significant issue for legacy automakers like Ford and GM that have a widespread dealer sales and service network, even in sparsely populated states. Service personnel at dealerships can be trained in EV-specific work. Fledgling and start-up electric pickup companies will certainly be at a disadvantage here.
Will electric pickups succeed? Time will tell. Plus, we’ll have to see how some wishful launch schedules align with reality since COVID-19 has caused auto manufacturing delays and shutdowns. Plus, with today’s extraordinarily low gas prices, the value equation for electrics of any kind is skewed, at least for the present time. That doesn’t mean there won’t be demand for electric pickups…just that expectations for timing and market penetration should be tempered.