Expecting Benefits from US Government Electric Vehicle Charging Subsidy Policy
Recently Unveiled 30kW Module... Preparing for Mass Production in Second Half of the Year
The corporate value of Y2Solution, a power supply unit developer preparing to enter the U.S. electric vehicle charging station market, is attracting attention.
According to the financial investment industry on the 29th, Y2Solution's stock price has risen 44.7% over the past two months. It jumped from 2,700 KRW on February 29 to 3,950 KRW on the 26th of this month.
Y2Solution is a developer of power supply units (PSU). PSU is one of the modules that greatly affect the lifespan and reliability of electronic products. It converts alternating current (AC) from commercial power sources into direct current (DC) or AC and voltage suitable for the product. The company mainly produces PSU modules for LG Electronics' displays.
The PSU modules for electric vehicle fast chargers are expected to drive Y2Solution's external growth going forward. The company began developing modules for electric vehicle fast chargers in 2018 and obtained KC certification in 2022. It plans to receive preliminary review certification for its 30kW module from UL, a U.S. safety (testing) certification body, in the first half of this year. Mass production is targeted for the second half of this year.
Y2Solution recently participated in the 37th World Electric Vehicle Symposium and Exhibition (EVS37) held at COEX in Seoul, where it unveiled the 30kW module for the first time. By applying silicon carbide (SiC) field-effect transistor (FET) and diode technology, it guarantees over 96% high efficiency. It is self-developed and capable of maintaining high output even at high temperatures up to 55 degrees Celsius.
Kim Suhyun, a researcher at DS Investment & Securities, said, "The U.S. will implement a new subsidy policy (BABA Act) for the electric vehicle charger market (EVC) starting this August," adding, "This is effectively a measure to regulate Chinese-made PSUs, which account for over 90% of the U.S. market share and 30-40% of the cost, as the core component of electric vehicle chargers."
The U.S. government provides subsidies covering up to 80% of the installation cost of fast chargers only if more than 55% of the parts are manufactured in the U.S. and steel and metals are 100% U.S.-made. Y2Solution, along with other major overseas companies, is gaining attention as a candidate to replace Chinese-made PSUs. Y2Solution's self-developed PSU is priced at about 30% of other companies' products and also offers higher efficiency.
The U.S. government has set a goal to deploy 500,000 chargers by 2030 with an investment of $7.5 billion (approximately 10 trillion KRW). Major domestic companies engaged in the electric vehicle charging station business are rushing to enter the U.S. market. LG Electronics acquired the electric vehicle charging company Apple Mango in 2022 and has been actively producing slow chargers at its factory in Texas since January this year. It also plans to manufacture 350 kW ultra-fast chargers in the second half of this year. In its Q1 earnings announcement on the 25th, LG Electronics stated, "The electric vehicle charging business is in its early stages but is expected to grow," and added, "We will nurture it into a trillion-won business as soon as possible."
Lee Junho, a researcher at Sangsangin Securities, explained, "As the proportion of fast chargers increases, the number of PSUs used also rises. A 100kW charger uses four 30kW PSUs, and a 400kW charger uses 14." He added, "A foothold is being established for Y2Solution to enter the U.S. market."
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