Finding
In electrification, compliance has become a supply-chain question
For EV, battery and energy companies, the rules that now carry the most money are about where parts come from: the foreign-entity rules that decide 45X and 48E eligibility, forced-labor import detentions under UFLPA, tariffs on steel, aluminum and copper, the EU battery passport and carbon border charges, and the US ban on Chinese software and hardware in connected vehicles.
Governance sets sourcing policy and accountability, risk management maps exposure to those rules and to cyber and grid threats, and compliance proves it through audits, certification and traceability. The practical tools are the same across the three: bills of materials traced to mine and refinery, supplier ownership checks, and product certifications (UL, IEC, FMVSS, UN R155) that customers and insurers ask for. The supply-chain pages on this site, starting with the Electrification Bottleneck Atlas, show where those exposures sit.
Regulations
Regulations and standards by area
Status as of October 2026.
| Area | Rule or standard | Jurisdiction | Timing | Effect |
|---|---|---|---|---|
| Supply chain | FEOC / prohibited foreign entity rules (45X, 48E) | US | Tax years after Jul 4, 2025 | Disqualifies credits for Chinese-owned or Chinese-assisted suppliers |
| Supply chain | Uyghur Forced Labor Prevention Act (UFLPA) | US | In force since 2022 | Import detentions of polysilicon, batteries, aluminum |
| Supply chain | EU Battery Regulation and battery passport | EU | Passport from Feb 2027 | Carbon footprint, recycled content, due diligence |
| Trade | Section 301 and 232 tariffs | US | Steel and aluminum 50%; copper semis 50% | Raises cost of imported components |
| Trade | EU Carbon Border Adjustment Mechanism (CBAM) | EU | Definitive from Jan 2026 | Carbon cost on steel, aluminum, hydrogen imports |
| Product safety | UL 9540 / 9540A, UL 2580, IEC 62619 | Global | Ongoing | Battery and BESS fire safety |
| Product safety | FMVSS 305a, UN ECE R100 | US / UN | Ongoing | EV electrical safety |
| Cybersecurity | UN R155 / R156; NERC CIP | UN / US | Ongoing | Vehicle cyber and software updates; grid assets |
| Cybersecurity | Connected vehicle rule (Chinese software and hardware) | US | Software MY2027; hardware MY2030 | Bars Chinese-linked connected vehicle systems |
| Grid | IEEE 1547, UL 1741 SB, FERC Order 2023 | US | Ongoing | Interconnection of DER, storage and large loads |
| Environment | Vehicle GHG standards | US | Repealed Feb 2026 | In litigation; criteria pollutant rules remain |
| Disclosure | EU CSRD; California SB 253 / 261 | EU / CA | Phased, scope narrowed | Climate and supply chain reporting |
Layers
Governance, risk and compliance in practice
| Layer | Role | In electrification |
|---|---|---|
| Governance | Policies, oversight, accountability | Sourcing policy, board oversight of supply-chain and cyber risk, ESG reporting |
| Risk management | Identify and mitigate exposures | Mineral and component concentration, FEOC exposure, cyber threats to chargers and fleets, policy reversals |
| Compliance | Prove adherence | Traceability, certifications, audits, regulatory filings |
Sources
Sources and scope
- Scope
- Governance, risk and compliance for electrification companies (merges the former governance, risk and compliance pages)
- Sources
- One Big Beautiful Bill Act (Public Law 119-21, July 4, 2025); UFLPA; EU Regulation 2023/1542; EU CBAM; Commerce BIS connected vehicle rule; EPA final rule (February 2026)
- Updated
- October 2026