US EV Charging Stations Policy: DOT Proposes 100% Domestic Content Rule for NEVI Program

On February 10, the U.S. Transportation Department (DOT) introduced a comprehensive proposal to amend the regulatory framework governing US EV charging stations, seeking to raise the domestic content threshold from 55% to a full 100% for projects receiving federal assistance. If enacted, the measure would obligate that all charging equipment funded through federal initiatives be entirely manufactured within the United States, representing a decisive recalibration of EV infrastructure policy, procurement norms, and compliance requirements.
The proposed rule applies directly to projects financed through the USD 5 billion National Electric Vehicle Infrastructure (NEVI) program, a cornerstone initiative designed to accelerate EV charging infrastructure rollout across interstate corridors and strategic urban locations. Upon final approval, the revised requirements are expected to be implemented without transition buffers, potentially impacting execution schedules, procurement agreements, vendor eligibility criteria, and overall project economics at the state level.

Policy Shift in US EV Charging Stations Under NEVI Program

Under the Biden administration, the Federal Highway Administration, functioning within the U.S. Transportation Department, had previously granted temporary waivers for specific domestic sourcing provisions covering steel, iron, and certain construction inputs. This interim flexibility was intended to mitigate supply-side constraints, prevent project delays, and ensure rapid scaling of EV charging infrastructure during early deployment phases.

From 55% to 100% Domestic Content

The current proposal withdraws that conditional flexibility and mandates end-to-end U.S.-based manufacturing for federally funded charging systems. Transportation Secretary Sean Duffy stated that the strengthened domestic content requirements are designed to “reinforce domestic manufacturing capacity, create American jobs, enhance competitiveness of U.S. enterprises, and mitigate potential national security vulnerabilities.”
This policy direction aligns with a broader industrial framework aimed at reinforcing American manufacturing depth within the EV supply chain, particularly as high-power charging corridors expand along federal highways and metropolitan clusters. By tightening localization mandates, policymakers are signaling a strategic shift toward vertical integration and supply chain sovereignty in critical clean energy infrastructure.

Impact on EV Supply Chain and Deployment

Market analysts indicate that transitioning US EV charging stations to fully domestic sourcing may introduce near-term supply chain friction. Developing a robust U.S.-centric manufacturing ecosystem for charging hardware—including power modules, rectifiers, control electronics, cooling systems, enclosures, and connectors—requires coordinated capital investment, certification alignment, and production scaling.
Elevated localization thresholds could translate into higher unit procurement costs, especially during initial ramp-up phases when economies of scale are still maturing. Consequently, state transportation agencies operating under fixed federal EV funding envelopes may encounter tighter capital allocation dynamics, potentially influencing deployment density and geographic coverage.
Key implications include:

• Higher capital expenditure for domestically compliant charging equipment due to limited initial supplier base and scaling constraints

• Potential delays in active charging deployment projects as contracts are restructured to meet revised domestic content requirements

• Renegotiation or restructuring of existing global supplier agreements to align with U.S.-only production mandates

• Acceleration pressure on domestic component manufacturers to expand capacity, secure certifications, and ensure quality compliance at scale

Political and Legal Developments Around Federal EV Funding

The domestic content proposal emerges against the backdrop of broader federal EV funding adjustments. In January, Congress passed legislation reallocating USD 879 million from the NEVI program to alternative infrastructure priorities. The reallocation temporarily suspended funding flows to 20 Democratic-led states, triggering legal challenges and administrative review.
U.S. District Judge Tana Lin subsequently ruled the funding diversion unlawful, introducing additional policy uncertainty into the EV infrastructure policy landscape. Environmental advocacy group Sierra Club criticized the enhanced domestic content proposal as counterproductive, arguing that it could slow EV charging deployment, weaken national competitiveness, and limit equitable access to clean mobility solutions.
As deliberations continue, US EV charging stations remain positioned at the convergence of industrial policy, supply chain security, fiscal governance, and decarbonization strategy. The ultimate regulatory outcome will play a pivotal role in determining how efficiently the United States can scale its nationwide EV charging infrastructure while reconciling domestic manufacturing objectives with cost, speed, and accessibility considerations.