What You Need to Know About the Bipartisan 'Connected Vehicle Security Act'
On May 11th, a bipartisan coalition of U.S. lawmakers introduced the Connected Vehicle Security Act, a bill aimed at banning vehicles, software, hardware and components tied to China, Russia, North Korea and Iran.
If enacted, the law would codify data security rules carried over from the Biden administration that block Chinese-made vehicles. The law would also expand restrictions on industry partnerships, forcing automakers who currently rely on Chinese-made safety components and electronics to find alternatives.
Key automotive components primarily sourced from China
While Chinese companies are unable to sell vehicles in the United States, most automakers selling within the U.S. use some components that are tied to China. A total ban on Chinese components would require automakers to make significant changes to their supply chains to find viable alternatives.
Key automotive components are overwhelmingly sourced from China, with few viable alternatives and limited infrastructure in place elsewhere. These components include:
Electric vehicle components, including batteries (CATL, BYD), electric drive systems, power electronics, and battery management systems
Electronic components such as wiring sets, MOSFETS and diodes
Suspension and steering, including steering arms, steering racks, ball joints, bushings
Chips
Processed rare earth elements and graphite used in auto manufacturing
Congressional aides suggest that the measure may pass this year as part of a transportation spending bill.
To learn more about the Connected Vehicle Security Act and how it might impact your automotive supply chain, reach out to our team of policy experts today.
