In a surprising move, major electric vehicle (EV Charger) charging companies are starting to adopt Tesla’s charging technology as the de facto standard in the United States. The recent agreements between Tesla and automakers Ford and GM, who collectively dominate over 60 percent of the American EV market, are expected to elevate Tesla’s North American Charging Standard (NACS) to the forefront.
However, this development poses challenges for companies like ChargePoint, EVgo, and Blink Charging that primarily support the rival Combined Charging System (CCS), favored by the Biden administration. If they don’t offer NACS compatibility, they risk losing customers in the face of federal subsidies and incentives tied to Tesla plugs.
ABB E-mobility North America, a subsidiary of Swiss industrial firm ABB, disclosed that it has been actively working on integrating the NACS connector into its chargers since Tesla’s technology became accessible in November. Asaf Nagler, Vice President of External Affairs at the company, revealed that they are currently in the design and testing phase, closely collaborating with Tesla.
Nevertheless, industry players still express concerns about the compatibility and seamless integration of the two standards. Ashley Horvat, a senior executive at Schneider Electric SE’s US unit, noted the growing interest in NACS adoption following Ford and GM’s announcements. Blink Charging, ChargePoint Holdings, and Tritium DCFC Ltd. have already confirmed plans to release fast chargers with Tesla’s connector, while EVgo is actively working with its suppliers to cater to all EV drivers.
Despite some initial stock market fluctuations, companies aligning with NACS have seen a rebound in their stock prices. Nonetheless, stakeholders remain cautious about potential challenges related to interoperability and increased costs for both vendors and customers.
The exact details of how the two standards will work together or whether any financial agreements will be made between automakers and the US government are yet to be revealed.
Key concerns among charger manufacturers and operators include the ability of Tesla Superchargers to efficiently charge higher-voltage vehicles with fast charging and whether the design of its charging cables will be compatible with various car ports. Tesla’s integrated Superchargers allow seamless charging and payment through its app, but questions arise about the integration level other automakers would be willing to provide for a smooth experience. Furthermore, the potential for a less seamless integration that offers access to a broader charging network is being considered.
Industry experts and insiders believe that while NACS chargers may initially add cost and complexity, the government needs to rally behind a single standard to support a larger vehicle population and ensure a superior user experience. Nonetheless, some argue that Tesla’s proposal still has a long way to go before it can be considered a true industry standard.
Oleg Logvinov, President of CharIN North America, an industry body promoting CCS, emphasized that CCS has been a reliable standard supported by multiple vendors for over a decade. Logvinov, who also serves as the CEO of EV charging parts supplier IoTecha, expressed concerns about Tesla’s proposal and believes that CCS is still the more favorable option.
As the industry navigates these changes, the interoperability between these charging standards will continue to be a focal point, with the goal of delivering seamless charging experiences for all EV users.