One of the most heated topics in the automotive industry recently has been the US government’s decision to ban vehicle connectivity hardware and software made by China and Russia. The reasoning behind this move is a concern that these devices could steal data from US car owners and pose a threat to national security.
This decision follows an investigation launched by US President Joe Biden in March into the cybersecurity risks posed by Chinese automotive software. However, the scope, methodology, and specific results of the investigation have not been disclosed.
Chinese companies, like BYD, have responded with little concern. Liu Xueliang, general manager of BYD’s Asia Pacific automotive sales division, said the company has shifted its focus to markets with more open electric vehicle policies, such as Asia, South America, and Australia. He added that he isn’t worried that higher tariffs or other barriers would prevent US consumers from purchasing EVs.
In reality, if smart driving technology is truly a national security threat, China should be the one more worried. After all, 27.7% of China’s smart driving market is dominated by Israeli company Mobileye, which supplies key components like chips and driver assistance software.
The US ban has met strong opposition from both US and global automotive industries. According to Reuters, trade groups representing major automakers like General Motors, Toyota, Volkswagen, and Hyundai have warned that changing hardware and software would be challenging and time-consuming.
Under the new regulations, GM and Ford will need to stop importing cars from China. Currently, GM’s Buick Envision and Ford’s Lincoln Nautilus, both sold in the US, are assembled in China.
This will only add to the struggles of the already slowing EV market in the US.
According to Kelley Blue Book (KBB), a leading authority in the US automotive industry, EV sales in the first quarter of this year grew by just 2.6% year-on-year, while quarter-on-quarter sales dropped 7.3%. Although sales rebounded in the second quarter, the growth rate was only 11.3%, far below the 59% increase seen during the same period last year. Moreover, EV penetration in the US was only 8% in the second quarter, making it unlikely to reach the 10% target for the year, let alone the Biden administration’s ambitious goal of 50% EV sales by 2030.
So, what’s holding back EV growth in the US?
One significant new obstacle is the vandalism of charging stations.
While incidents of charging station vandalism occur worldwide, the problem is particularly rampant in the US and is only getting worse.
According to a 2023 report by the US Department of Energy’s Alternative Fuels Data Center (AFDC), the US has about 50,000 public EV charging stations, with nearly 130,000 individual charging ports. The Sacramento-based Electric Vehicle Charging Association (EVCA) has noted that more than 20% of these charging stations have experienced some form of vandalism, ranging from copper wire theft and tampering with electrical components to short-circuiting chargers.
Two years ago, Electrify America, which operates the second largest DC fast charging network in the US, reported that its charging stations experienced a cable cut once every six months. By May this year, that number had risen to 129 instances—four more than the total for all of 2023. Anthony Lambkin, vice president of operations at Electrify America, said that, at one Seattle station, charging cables were cut six times last year.
Other major charging companies like Flo and EVgo have also reported a rise in theft. Charging stations in the Seattle area are frequent targets, but those in Nevada, California, Arizona, Colorado, Illinois, Oregon, Tennessee, Texas, and Pennsylvania have also been attacked.
This vandalism poses a serious challenge to the adoption of EVs. Drivers may travel long distances only to find that they cannot charge their cars, sometimes even requiring their vehicles to be towed away.
Robert Carson, head of the Houston Police Department’s metal theft division, recalled a case in which thieves stole 18 out of 19 charging cables at a Tesla charging station. On the day Carson visited the station to inspect the damage, within just five minutes of his arrival, about ten electric cars that needed charging were turned away.
US media have analyzed that, while there is a public concern about a shortage of charging stations, vandalism and malfunctioning chargers have become a significant hurdle for US automakers trying to encourage more people to adopt EVs.
To address this issue, both the US government and charging companies have stepped up their efforts: Electrify America is installing more security cameras, Tesla is using solar-powered, camera-equipped “MacGyver” robots to protect its stations, and some charging stations are beginning to use retractable cables. Additionally, the Recycling Materials Association (ReMA) is issuing alerts to law enforcement about scrap metal thefts to help its members stay vigilant. Some local jurisdictions are also working on ordinances to make it more difficult to buy and sell stolen copper, the most valuable metal in charging cables.
China, the world’s largest EV market, is also dealing with charging station thefts, but the motivations there are simpler. Thieves are primarily stealing for small profits, such as cutting charging cables to sell the copper for scrap, prying open coin boxes, or even removing entire charging stations.
Although copper theft due to rising global prices does occur in the US, Bill Ferro, president of EVSession, believes that no one is getting rich off stealing from charging stations. “With the right tools, you can cut a cable in minutes, but selling that cable won’t make anyone rich. Copper sells for USD 3–5 per kilogram, and each cable contains about two pounds of copper wire. Thieves won’t get full price and will have to sell it at half value, so they aren’t making much money.”
Compared to the cost of installing a charging cable, the profit from selling stolen copper is negligible. A thief might earn about USD 400 from 20 cables, but replacing a single cable costs the charging company roughly USD 1,000.
In the US, this behavior is more about retaliation—a form of “green backlash” against EVs. Such incidents have occurred more than once in the US and Europe.
For instance, in British Columbia, Canada, someone coated the plug of a Tesla Supercharger with sealant, making it unusable. Recently, a Ford Ranger owner smashed the parking spaces of a Tesla Supercharger in Taupō, New Zealand, with a hammer.
So, where is this anti-EV sentiment in the US coming from?
Since 2022, posts on anonymous online forums have been asking why there is so much anti-EV rhetoric in the US lately. One reply suggested that USD 30 million had been spent on a covert PR campaign—and the amount is still increasing.
Historically, the debate over EVs in the US has been a contentious issue between Republicans and Democrats.
During Bill Clinton’s presidency, renewable energy companies lobbied for the “Partnership for a New Generation of Vehicles” in 1993, resulting in a slew of policies supporting new energy vehicle (NEV) development.
When George W Bush took office, he was lobbied by the oil industry, obstructed renewable energy progress, and in 2000, withdrew the US from the Kyoto Protocol, claiming that China was the largest carbon emitter.
Barack Obama, on the other hand, heavily subsidized renewable energy and announced plans to invest USD 150 billion over a decade in clean energy.
Donald Trump reversed course again, strongly opposing EVs, calling them “job killers” and a “green new scam.”
Under Biden’s administration, the US has taken a more supportive approach, continuing to increase investment in EV infrastructure and offering more support to domestic EV industries.
This partisan divide has only deepened over time.
According to The Washington Post, most EV buyers in the US are Democrats, with most Republicans not yet joining in. Additionally, a March Gallup poll found that 61% of Democrats are “seriously considering” or “might consider” buying an EV in the future, while only 24% of Republicans feel the same.
Republicans have been lobbying from various angles, claiming that mandates to buy EVs infringe on personal freedom, disrupt America’s economic stability, and that subsidies for EVs are funded by taxpayers, while only wealthy people can afford to buy them—essentially arguing that the Democratic coastal elites are benefiting themselves with these tax breaks.
Due to this partisan divide, the development of EVs in the US has been a rollercoaster. Trump even said during a recent speech that “[he] will end the electric vehicle mandate on day one,” if reelected to office.
This resistance stems partly from the desire to win votes from traditional automotive industry workers and partly to protect the US oil business. Oil giants like the Koch brothers and ExxonMobil, one of the largest publicly traded oil and petrochemical companies in the world, are key backers of Republican efforts. In fact, in 2016, Trump appointed the chairman of ExxonMobil as the US secretary of state.
The greatest obstacle to EV development in the US, however, comes from the oil industry itself.
Surprisingly, ExxonMobil was actually one of the pioneers in lithium battery development. Following the first oil crisis, ExxonMobil viewed renewable energy as the future and created the world’s first lithium battery in 1976. However, when oil prices dropped, the company refused to mass produce the battery and instead doubled down on oil.
As things took off, ExxonMobil, ChevronTexaco, and ConocoPhillips grew concerned that the widespread adoption of EVs in the US would reduce gasoline consumption by 370 billion liters annually. These oil giants began suppressing NEVs, buying up motor companies, placing restrictions in the supply chain, and hindering car manufacturers from purchasing motors. They even acquired numerous startups with patents related to EVs and shelved them, stalling the development of electrification.
Despite this resistance, global trends show that gas stations are disappearing while charging stations are increasing.
For example, in China, according to the latest blue book on the domestic petroleum industry, there were about 105,800 gas stations nationwide in 2023, down by more than 1,800 from the previous year. Since peaking in 2020, the number of gas stations has steadily declined.
The US, which has the highest per capita vehicle ownership in the world, had 200,000 gas stations in 1992, but that was its historical peak. Since then, the number has declined, from around 170,000 in 2000 to about 150,000 in 2012. Today, there are approximately 130,000 gas stations left.
Japan has seen a similar trend. After peaking at close to 60,000 gas stations in 1994, the number has steadily decreased. In 2022, 76 new gas stations opened, while 555 closed—a closure rate over seven times higher than new openings. Japan’s gas stations continue to dwindle.
The Biden administration remains committed to pushing domestic EV policies. Recently, it announced over USD 3 billion in funding for US companies to promote the domestic production of advanced batteries and other materials used in EVs. Should Kamala Harris win the presidential election and continue promoting EVs, it may help revive the US EV market.
On September 22, CBS and NBC released new poll results showing that Harris holds the largest lead over Trump to date, though it’s only by 4–5 percentage points. In the 2016 and 2020 elections, Democratic candidates were leading by at least twice as much at this stage in the race.
Regardless, shutting out popular Chinese EVs from the US market means that, in the face of economic downturns, US consumers seeking affordable, quality EVs won’t have access to them. This will only accelerate the decline in vitality in the US EV market—a decision that doesn’t appear to be in the best interest of the country’s automotive industry.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Zhai Fangxue for 36Kr.