How nVent Solutions Help Manufacturers Capitalize on BABA/NEVI Infrastructure Investments
Many consumers looking to participate in building a more sustainable and electrified world are adopting electric vehicles (EVs). EV technology has improved dramatically over the last decade, and adoption continues to grow. The International Energy Agency estimates that by 2030, 50% of the cars sold globally will be EVs.
The rapid development of supporting infrastructure is one of the biggest roadblocks for widespread EV adoption. EV use requires a reliable charging network, and many governments around the world have introduced funding programs and incentives to support the expansion of EV infrastructure. In the U.S., the government has allocated $7B in funding under the Build America, Buy America (BABA) and National Electric Vehicle Infrastructure (NEVI) programs. OEMs and system integrators who are prepared to meet the growing demand for EV charging infrastructure will have plenty of opportunities for business, and nVent is here to help them do it.
What is BABA/NEVI?
BABA and NEVI are a pair of programs designed to encourage and fund sustainable infrastructure investments that support the American economy. BABA is part of the 2021 Infrastructure Investment and Jobs Act. It sets expectations that contractors that use government funding for infrastructure projects must use iron and steel products, manufactured products, construction materials and Section 70917 © materials that are manufactured in the U.S. Each of these four categories must follow a set domestic content criteria which manufacturers must meet or exceed to be BABA compliant.
The NEVI program is administered by the Federal Highway Administration (FHWA) and pertains only to the EV industry. It “provides funding to states to strategically deploy electric vehicle (EV) charging stations and to establish an interconnected network to facilitate data collection, access, and reliability.”
NEVI imposes more rigorous requirements that mandate American-made materials further down the supply chain. Projects that are leveraging NEVI funding require all the manufacturing processes on iron or steel products or components to be performed in the United States. This includes using U.S.-made U.S.-sourced steel. Since NEVI provides more rigorous criteria, projects that are NEVI compliant will also meet the threshold of BABA. For eligible projects, BABA and NEVI apply to all components of EV installations, not just the parts consumers can see. That means that inverters, transformers, battery enclosures and connection solutions must be compliant, not just charging pedestals.
Not all EV projects fall under NEVI. NEVI specifies that to be eligible, projects need to be publicly accessible (such as service stations, roadways and retail) and accept open access payments. Sites also need to be located in areas that states have designated for alternative fuel projects. This regulation is designed to encourage the creation of extended corridors where EV drivers can expect to find charging options, as opposed to disparate pockets of charging stations.
How should companies approach BABA/NEVI compliance?
BABA and NEVI may seem intimidating, but it is worth the effort for manufacturers to explore developing compliant products to take advantage of the government funding available and support the growth of clean energy infrastructure in the U.S. BABA/NEVI provide an opportunity to contribute to the electrification of America and a more sustainable future, while supporting U.S. job creation.
The specifics of the BABA and NEVI programs are likely to change over time. Becoming familiar with the programs once is not enough—manufacturers need to keep an eye on changes and make sure they have the proper controls in place to adapt as needed. Good supply chain management and data governance are also critical. Manufacturers need strong visibility into where raw materials and subcomponents are being produced all the way through their supply chain. Manufacturers that provide subcomponents to NEVI projects need to be ready to provide documentation to their customers on the source of materials when needed.
BABA/NEVI Compliant nVent Solutions
Our new nVent HOFFMAN Enclosure for EV Charging Inverters is proudly made in the U.S.A. with U.S. steel to meet NEVI/BABA requirements. Built to handle the most challenging operating conditions and protect from corrosives, water, broad temperature swings, humidity and UV rays, this solution is designed for ease of use and reliability, while improving end-user safety and installation time. This new enclosure solution is also intentionally designed with key features to ensure longevity and maximum uptime in the field, where inverters play an important role converting DC power to AC power that can be used to power electric vehicles.
As the world continues to become more sustainable and electrified, there will be many opportunities for electrical equipment manufacturers to grow their businesses to support infrastructure investments. Our partners can rely on us for critical expertise on how to take advantage of this funding. Learn more about our solutions for EV infrastructure here: https://www.nvent.com/en-us/hoffman/ev-infrastructure