U.S. Expands Restrictions on Foreign Technology

Recent federal actions, such as the Connected Vehicle Security Act of 2026 and the Federal Communications Commission's recently updated Covered List, suggest that U.S. restrictions on foreign-developed hardware and software are expanding beyond traditional trade measures. If enacted, the proposed legislation would establish phased restrictions on certain battery management software beginning in 2027 and hardware beginning in 2030 for covered connected vehicles.  More broadly, recent federal actions suggest increasing attention to similar electronic control systems used in battery energy storage systems (BESS), drones, robotics, and other industrial equipment. For organizations deploying these technologies, the result is new considerations for supplier qualification, procurement, and long-term project planning.

Looking beyond the battery cell

As batteries become central to transportation, energy storage, and industrial systems, oversight has increasingly evolved beyond battery cells to the electronic systems that monitor and control them.

Battery management systems (BMS) monitor and control critical battery functions, including charging, temperature, cell balancing, and communication with vehicle or energy management systems. Because these functions depend on embedded software, communications interfaces, and electronic controls, access to BMS data and commands can have direct implications for cybersecurity and safety. Unauthorized access, manipulation, or loss of control over BMS functions can affect battery operation and has therefore become an important consideration in system design, supply chain, and procurement decisions.

A Senate committee recently advanced the Connected Vehicle Security Act of 2026, which, if enacted, would establish phased restrictions on certain BMS, including the embedded software, microcontrollers, and communications hardware that monitor and control battery operation. Unlike earlier connected vehicle restrictions that primarily applied to passenger vehicles, the proposed legislation would extend to vehicles regardless of weight. 

Although the proposal has not yet become law, manufacturers may need to evaluate country-of-origin, supplier ownership, qualification, and sourcing strategies for battery management components as they prepare for potential future requirements. Because the proposal would not grandfather existing designs, organizations may also need to begin evaluating future supplier and component strategies well before the implementation dates.

A broader focus on connected technologies

BMSs are only one example of a broader shift. Recent federal actions targeting certain foreign-manufactured power inverters reflect growing attention to battery management software, communications hardware, power electronics, and other embedded control systems used throughout critical infrastructure, particularly where those systems create cybersecurity, remote access, or firmware integrity risks. Earlier decisions to remove a CATL battery energy storage system from a U.S. Marine Corps installation similarly illustrate growing concern over electronic control technologies used in critical infrastructure and the potential for compromised components to enable espionage, disruption, or sabotage. At the same time, IEEE P2686 is under development to provide guidance for third-party battery management system evaluation and interoperability.

Together, these developments suggest that regulators and infrastructure owners are placing greater emphasis on the origin, architecture, cybersecurity posture, and trustworthiness of battery management software, communications hardware, and other embedded control systems. For organizations deploying connected energy systems, robotics, automated equipment, and electrified transportation technologies, this expands supply chain due diligence beyond traditional manufacturing and quality considerations.

Preparing for a more complex supply chain landscape 

As restrictions continue to emerge, organizations may benefit from evaluating supplier strategies, embedded electronics, software architectures, interoperability, and cybersecurity early in project planning. For long-lived infrastructure, changes in supplier availability may also affect equipment qualification, certification activities, project schedules, software updates, and long-term maintenance strategies. Early technical evaluations can help organizations assess these considerations before procurement decisions are finalized, supporting informed supplier qualification and long-term project planning.