Executive Summary: 

• In June, three automakers Ford Motor Company, General Motors, and Rivian, have all switched to manufacture electric vehicles (EV) with the North American Charging Standard (NACS), Tesla’s proprietary charging port integrated into their 21,000 Superchargers nationwide.  
• To access the Biden Administration’s $7.5 billion allocated for EV charging, the Combined Charging System (CCS), a competing charging infrastructure, is required to be implemented.   
• When evaluating the impact of charging policies, the most important consideration is how it will impact consumers.  

Introduction:  

Over the last month, a significant shift has occurred in the electric vehicle space. Three major manufacturers – Ford Motor Company, General Motors, and Rivian – announced they would transition their charging standard to the North American Charging Standard (NACS). NACS is Tesla’s proprietary charging system and is implemented in all of Tesla’s 45,000 Supercharger locations, with 21,000 located in the United States. Through transitioning to the NACS standard, 75% of the American electric vehicles market will have native support on the Supercharger network. This access partially solves one of America’s most significant concerns related to electric vehicles: charging availability.   

On June 9th, 2022, the Biden Administration announced $7.5 billion for a national electric vehicle charging network. This is the most significant investment into a nationwide charging network and supports the commitment by the Biden Administration that 50% of vehicle sales in 2030 will be electric. Developing a solid network for national travel is essential. As part of this funding, the Biden Administration outlined several standards that charging developers must follow to qualify for financing. Included in that is the requirement that the rival Combined Charging System (CCS) be utilized as the port for the charger.   

The existence of the two competing standards has a substantial impact on consumer perceptions related to electric vehicles. Consumers have expressed deep concern related to the availability and ease of access for charging, two concerns that are exacerbated by this competition. As the preferred charging method emerges, it is important that policymakers take steps to support consumer interests.  

What are NACS and CCS?  

In 2012, Tesla released its proprietary “Telsa Charging Connector.” This port was implemented as the native port for all its vehicles – Model S, Model X, and Model 3 – and served as the port for all Tesla supercharger stations. In the early 2010s, Tesla was the only automaker mass-producing electric vehicles for the United States market, requiring them to invest significantly in the charging infrastructure. Tesla currently has the largest and most reliable charging network in the United States, having 21,000 active ports. As many carmakers entered the EV marketplace and the Tesla network was locked off through the patented port, the Combined Charging System grew in the United States.   

Initially developed in Europe, the Combined Charging System (CCS) was ruled as the standard charging port for the European Union in 2012. European and Asian automakers designed vehicles adhering to CCS, and over 300 charging companies developed third-party charging networks on CCS. In the United States, the standard was first introduced in BMW and continued to expand as foreign importers and other domestic automakers ramped up EV production. It has grown to represent a large portion of the publicly available charging. Currently, 12,800 CCS ports are open, native in almost every vehicle other than Tesla.   

NACS Standard Adoption  

In 2022, the electric vehicle charging network was radically transformed when Tesla rebranded their proprietary charging port as the North American Charging Standard and announced plans to open the Supercharger network to other automakers. This had two significant impacts. First, the network for Tesla owners was radically expanded, allowing other charging companies (Electrify America, EvGO, ChargePoint) to integrate into the Tesla port. Second, automakers can now incorporate the NACS port into their vehicles, connecting them to the largest network in the United States, Tesla’s Superchargers.   

In response, CharIN, the governing body for the CCS port, published a statement claiming that the NACS “will lead to further consumer confusion and delay EV adoption.” In actuality, this release of the NACS addresses the two key concerns consumers have related to EV adoption: a lack of charging stations and a lack of driving range. When the Biden Administration released the $7.5 billion for electric charging expansion, one of the requirements was that any funder conforms to the CCS standard and integrates that port into the charging model. This placed external pressure on Tesla to conform with the standard. To access the funding, Tesla announced they would implement an adapter on their chargers for the CCS model.    

Tesla and Ford made headlines in late May, announcing the NACS standard will be integrated into all Ford electric vehicles in 2025. Several other automakers joined the partnership, with General Motors and Rivian also committing to integrate NACS into their vehicles. This coalition represents 75% of the American EV market, aligning the United States automakers and making charging more accessible for consumers. In the past week, Hyundai announced they are considering shifting to the NACS model as well.  

As the preferred model for automakers begins to look clearer, states have taken steps to mandate the NACS standard as well.  Texas announced a policy requiring the implementation of the NACS standard for any new charger. Washington State is considering implementing a similar policy, claiming that the decision is about “future proofing” its investments. With the automotive industry and states shifting in the direction of NACS, is it time for the Biden Administration to update its policy regarding charging ports? 

While the politicking behind charging standards is fascinating, the most important question is how this will impact consumers. As the market for electric vehicles continues to grow, making policy decisions with the consumer in mind is essential. While CharIN claimed that the NACS model will harm EV adoption, that does not seem to be the case. The standardization of the United States charging around the Supercharging network – a network that ranked highest in terms of customer satisfaction – is a move that makes sense for the United States market. In addition, the NACS model is regarded as easier to use and lighter, something Ford claims as a “superior experience for customers”.  

Conclusion 

It is important to standardize charging in the United States; charging is a capital-intensive process and ensuring resources are allocated most effectively is important. However, that should not focus on protecting CCS, it should instead focus on policies that make the most sense for the consumer.  Consumers, automakers and states have indicated their support for the NACS model, it is time for Biden Administration funding and national standards to reflect that.