Interesting DCFC Insight From EVGo Earnings - Fewer Built in 2023?

[MellowJohnny]

Lots of ink being spilled today to discuss the IRS rules, but equally interesting to me is the impact some of the Infra rules will have on DCFC infrastructure, at least from EVGo's perspective ("Zoi" is EVgo CEO Cathy Zoi):

Now while the government does giveth, it does taketh in some ways. One big area is the requirement that chargers using federal money must be made in the U.S. and most components coming from the U.S. by 2024. This is problematic for many companies sourcing products and components from overseas.


EVgo says this may hit 2023 growth, but it shouldn’t be material — yet.


“We're deploying ultra-fast chargers that, at the moment, nobody makes them in America,” she says, but two suppliers that EVgo is currently using have factories under construction in the U.S.


What may end up happening, Zoi says, is the company may push some of those fast chargers to 2024, when U.S.-built chargers are available, from 2023’s buildout plan.


“It's not a material change, but there will likely be a slowdown in 2023 for things that actually get built, given the new guidelines that have come out from the federal government.”

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[RickMachE]

Not new news to them though.

 

[MellowJohnny]

Not new news to them though.

For sure, but if the goal is to get more DCFC chargers deployed around the US, this doesn't sound helpful. Unless you want to turn down free capital.

I understand why Gov't funds come with strings attached, but if the conditions can't be met, then the incentive isn't meeting the stated goal.

 

[RickMachE]

In the rules there is a waiver, which states that any chargers manufactured from 3/23/23 through 6/30/24 just have to have final assembly done in the US, as long as installation begins by 10/1/24.

If a charger is manufactured after 7/1/24, it is covered if final assembly is in the US AND cost of components manufactured in the US exceeds 55% of the cost of all components.

In short, somewhat of a misstatement by them.

 

[Logal727]

Dang so this probably puts the Pilot chargers on hold

 

[superdave80]

Given the poor state of foreign-made DC chargers that we are all dealing with, I think I'd like to at least give some US made DC chargers a chance to see if that improves things.

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