Building Electric Vehicle Infrastructure is Not Enough: Here's Why
Climate change and rising gas prices have accelerated the conversation surrounding electric vehicles. Now more than ever, the clock is ticking to find a sustainable alternative to traditional transportation. The Biden Administration has committed $7.5 billion to building out the nation’s EV infrastructure, but that alone is not enough to lead to widespread EV adoption.
If EVs are ever going to seriously compete with their gas-guzzling cousins, we need to settle one fundamental problem: charging compatibility.
The nation’s EV infrastructure is fragmented
All EV charging is not created equal. The main division is between AC charging and DC charging. AC charging is the more common consumer grade EV charging method. When a consumer purchases a portable charger or an in-home charging station, it’s almost always an AC charger. However, AC charging is divided between two charging standards: Tesla and SAE-J1772 (all other EVs).
DC charging, on the other hand, is the more powerful charging option, allowing drivers to charge their EVs in under a half hour. Unfortunately, DC chargers are also incredibly costly, $30,000-$50,000 per installation. As such, they are generally only available in public spaces like hotels and shopping malls.
The nation’s DC charging network is divided even further. In one corner we have Tesla and its rapidly charging (and exclusive) Superchargers. On the side, we have the CCS standard, which is preferred by most U.S. and European automakers. And in yet a third corner, albeit less common, we have CHAdeMO, preferred by some Japanese automakers.
Now think about pumping gas. It’s a really simple process. You pull up, pop the tank, and shove the nozzle into the hole. Imagine being a first time EV buyer and you're faced with all these complicated charging questions. You’ve been powering your car only one way since you were sixteen years old. Now you’re told that there are five different standards for powering these fancy new cars — and you need to remember the exact one that fits your vehicle!
Consumers are being asked to give up something very simple for something very complex.
But what is being done?
Waiting for automakers to duke it out for charging supremacy could take years, precious time that we just don’t have. Standardization requires immediate action. Biden’s $1.2 trillion infrastructure bill signed last November contains $7.5 billion that will be used for building out the nation’s EV charging infrastructure. $5 billion of which will go directly to states for jumpstarting their EV charging network. The remaining $2.5 billion will go toward ensuring charging quality and access for rural and disadvantaged communities.
The bill says nothing about how AC or DC charging standards will be implemented. However, last December, the White House released a fact sheet outlining its plan for the EV infrastructure rollout. The document gave us almost no information regarding the standardization. What we did get is a promise that, “No later than May 13th (2022), DOT will publish standards for EV chargers in the national network to ensure that they work, they’re safe, and they’re available to everyone.” We will just have to wait with bated breath to see what that entails.
But choosing a charging standard for both AC and DC charging is no small task. If the government sides with most US automakers, they will be implementing SAE-J1772 and CCS charging, respectively. It would seem like the obvious choice. That is until you consider market breakdown. Tesla accounts for the lion’s share of U.S. EV sales and it’s not even close: roughly 72% of all U.S. EVs sold in Q4 of 2021 were made by Tesla (insideevs.com).
Should the government side with the majority of EV producers, or Tesla, the one that is more popular than all the others combined?
Despite its market share, it would be somewhat impractical to implement the Tesla charging standard. Even though Tesla has laid much of the groundwork for developing EVs, going as far as installing over 15,000 publicly accessible charging stations nationwide, U.S. auto giants like Ford and GM are quickly ramping up their EV production.
The safe bet, however, is that the government will implement SAE-J1772 for AC charging, and CCS for DC charging. Those are the standards that will satisfy most U.S. automakers. Tesla owners will need to continue using adapters to access SAE-J1772 and CCS chargers. Or else, Tesla will have to phase out its unique charging standard and adopt the new status quo (something Elon doesn’t seem keen on doing anytime soon).
Adopt or adapter
We will have to wait until mid-May 2022 before finding out exactly what America’s expanding EV network means for the looming compatibility problem. One thing is for sure: it will not satisfy everyone. Some companies will benefit greatly from it, and others will be left in the dust. While the legislation is a huge step in the right direction, it will force all other EV drivers to either adopt the new status quo standard, or carry adapters with them to access the growing charging network.
Whichever way it goes, the U.S. simply must settle the compatibility problem if EVs are ever going to seriously rival gas-powered cars and serve as the sustainable transportation of the future.
About the Author
Christopher Maiwald is the Founder and CEO of Lectron, an electric vehicle charging provider, that offers a wide selection of convenient and easy-to-use EV chargers, charging stations, and adapters. Lectron is pioneering ways of eliminating range anxiety and compatibility issues for both Tesla and SAE-J1772 EV drivers by making it easier and more reliable than ever to charge EVs at home and on the road.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.