05 Jul The Importance of Custom Cable Assemblies in EV Charging
The widespread adoption of electric vehicles, and the subsequent need for EV charging stations, has created a demand for the resources available for drivers of such vehicles. The impact of EVs extends well beyond personal transportation for many regions worldwide. It’s drastically reshaping the energy industry on a global scale and putting ecological alternatives at the forefront of vehicle purchasing decisions.
Serving as a lifeline for the EV charging industry, specialized custom cable solutions must be able to meet incredibly strict requirements to ensure the safety and effectiveness of EV charging stations. In this blog, NAI will cover how custom cable assemblies play into the emerging EV charging industry and what you need to know to stay ahead of it.
What Is EV Charging?
At the heart of this evolution is the prevalence of EV charging. If your vehicle is still gas-powered, this trend could be news to you, leaving you wondering, “What is EV charging?”
EV stands for electric vehicle, while EV charging is the process of “refueling” electric vehicles, allowing them to power up through EV charging stations. However, as simple as it may seem on the surface, EV charging stations require complex high-voltage electrical systems, intricate electronics, and reliable cable assemblies designed specifically for electric vehicle charging needs.
How Do Electric Vehicle Charging Stations Work? Usually with Custom Cable Assemblies!
An EV charging station, also called an e-car charging station, is a setup that safely provides access to electrical energy used to recharge vehicles at electric stations. Depending on their location, how they receive their energy, and how they connect to the main energy grid, these EV charging stations often have to operate through complex systems of electrical components and cable assemblies.
Generally, the power is either delivered through 240-volt outlets or hardwired into the local electricity grid. Depending on the source of energy, different EV charging stations can offer access to multiple levels of green energy at varying price points.
For the EV charging industry, having access to custom cable assemblies is critical to operating an EV charging station on a wide scale. It enables them to provide energy to a variety of electric vehicles from various manufacturers, especially manufacturers that are more prevalent in their regions.
How Are EV Charging Stations Impacting Legislation?
As EVs and EV charging stations become more prevalent, their effect on the economy, as well as legislation, is also growing. This is particularly the case in regions witnessing massive growth in EV use, such as the USA, Europe, and China.
In these regions, local and state governments, as well as decision-makers are beginning to offer tax incentives, subsidies, and federal grants for electric vehicle charging stations.
In the USA, for example, the federal government provides generous incentives and grants to both at-home consumers and commercial EV charging stations. Such legislation isn’t only fueling the growth of the EV charging market, but also driving the development and production of custom cable assemblies for electric charging stations.
On January 25th, 2021, President Joe Biden signed the “Buy American” Executive Order, which included a “Build America” provision requiring that all electric vehicle (EV) charging equipment installed under federal contracts meet domestic content requirements. This means that the equipment must be manufactured in the United States with a minimum of 75% domestic content.
While this is a positive step towards supporting American manufacturing and reducing dependence on foreign imports and fossil fuels, it also has significant implications for the EV charging industry. Here are some of the effects that the “Build America, Buy America” requirements may have on EV charging equipment:
- Increased demand for domestic EV charging equipment: With the requirement that all federally-funded EV charging stations be made with at least 75% domestic content, there will be a significant increase in demand for American-made EV charging equipment, including custom cable assemblies. This could be a significant boon to domestic manufacturers, as they will have the opportunity to expand their production and take advantage of new contracts.
- Higher costs for EV charging equipment: One potential downside of the “Buy American” requirement is that it may result in higher costs for EV charging equipment. Domestic manufacturers may not be able to produce the equipment as cheaply as foreign manufacturers, and the higher cost of manufacturing may be passed on to the consumer. This could result in slower adoption of EVs if the cost of charging is seen as too high. However, tax incentives may offer some relief to any such increases.
- Increased competition among American manufacturers: The increased demand for American-made EV charging equipment will likely lead to increased competition among domestic manufacturers. This could result in more innovation and better technology as companies strive to outdo each other and win contracts. And it will support more jobs in the U.S.
- Potential shortage of EV charging equipment: With the increased demand for American-made EV charging equipment, there is the potential for a shortage of equipment. Domestic manufacturers may not be able to produce enough equipment to meet the demand, resulting in delays in installation and potentially slowing down the growth of the EV industry.
- Need for increased investment in domestic manufacturing: In order to meet the 75% domestic content requirement, domestic manufacturers will need to invest in their production capabilities. This may require significant investments in new equipment, processes, and components, which could be a barrier to entry for smaller manufacturers.
How Is This Impacting the Custom Cable Assembly Market?
Wide-scale legislative action is proving to have a substantial effect on the custom cable assembly market. Overall, the EV charging cable assembly market is expected to surpass an estimated $3.955 billion by 2030, maintaining a Compound Annual Growth Rate (CAGR) of 24.99% over the preceding decade.
Some factors driving this growth include increasing demand for electric vehicles, supportive government policies, and the need for advanced charging infrastructure. Furthermore, rapid technological advancements in custom cable assembly manufacturing are expected to improve performance and reduce overall costs, making these EV charging stations more accessible and attractive to consumers.
Compared to traditional automotive cables and refueling methods, custom cable assemblies for EVs must be capable of handling high-power transmission to charge vehicles efficiently and be rugged enough to resist the various temperatures generated while maintaining their durability. That’s why only high-quality cable assembly manufacturing companies that can deliver reliable products will be able to succeed in this booming market.
NAI Is Going Electric With Custom Cable Assemblies That Support EV Charging Stations
In response to these rapid changes and as a leading cable assembly manufacturer, we at NAI are fully prepared to provide our customers with the custom cable assembly solutions they need so that their end customers can benefit from commercial, state, and federal EV charging initiatives.
We’re recognized as one of the top custom cable assembly manufacturers in the USA. We’re committed to staying ahead of the technological wave, always providing you with cable assemblies that will meet the unique requirements of your alternative energy project. Furthermore, we’re invested in the innovation and development of new technologies, implementing new designs and features to improve our various production stages.
The growth of the EV charging industry is a testament to the global shift towards sustainability and green technology. As the demand for electric vehicles continues to rise, so does the need for efficient and reliable EV charging stations. The interplay between EV charging, commercial EV charging stations, custom cable assemblies, and legislation is creating an industry ripe with innovation and opportunities.