US EV Market – Growing Need for Charging Stations
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The US Departments of Transportation and Energy recently announced funding of nearly $5 billion for electric vehicle (EV) charging infrastructure along interstate highways, with an additional $2.5 billion for rural and underserved communities
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Biden administration intends to set up 500,000 charging stations by 2030 as part of the national EV infrastructure plan
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According to the Department of Energy, in 2021, the US had 50,054 charging stations (public and private)
US EV Market – Growing Need for Charging Stations
Greater awareness of the impact of climate change and the government’s implementation of measures to comply with the Paris Agreement goal of net-zero by 2050 resulted in a push for electric vehicles (EVs) and, consequently, EV charging infrastructure. On February 10, 2022, the US Departments of Transportation and Energy announced that they would open access to nearly $5 billion in federal funds to build an EV charging network. The funding is part of the new National Electric Vehicle Infrastructure (NEVI) Formula Program established by President Joe Biden's $1 trillion Bipartisan Infrastructure Law, approved by Congress in November 2021. The funds will be distributed over five years to help qualified states build a network of EV charging stations along interstate highways to provide charging points every 50 miles.
Need for EV Infrastructure
President Biden used a series of executive orders to emphasize climate change as a priority for his administration. Joining the Paris climate accord and hosting the Global Leaders Climate Summit was just the beginning. At the COP-26 summit in Glasgow, President Biden pledged that the US would reduce greenhouse gas (GHG) emissions by the end of the decade by at least 50% compared to 2005 levels. The US took up various measures to encourage the electric vehicle market to achieve this goal.
In August 2021, the White House announced that it would aim for half of all the new vehicles sold in the US by 2030 to be electric. It will apply to battery-electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), and plug-in hybrid electric vehicles (PHEVs). The President also signed an executive order to tighten the fuel efficiency and emission standards. These policies are expected to benefit the EV market, creating a need for a robust infrastructure for EVs.
One of the most significant barriers to widespread adoption of EVs is the fear of being left without a charge, commonly referred to as Range Anxiety. According to the US Department of Energy, there were around 50,000 public and private charging sites across the country. In a recent interview, Cathy Zoi, CEO of EVGo, the most prominent fast-charging network for EVs in the US, said that the country needs 1 million charging stations to reach the Biden administration’s goal of 50% new EV sales by 2030. Therefore, developing EV charging stations would be crucial to support the adoption of EVs.
According to the US Department of Energy, there were 50,054 charging stations in 2021. With EV registrations in the US expected to increase over the decade, the US government is pushing automakers to include more EV options in their product line. President Biden's goal is to set up 500,000 charging stations by 2030 to support the transition from conventional vehicles to EVs. The NEVI Program will allocate $615 million to various states in 2022, while an additional $2.5 billion will be granted later this year to boost charging infrastructure in rural and underserved communities. The funds issued by the Biden administration will cover 80% of the charging cost, while states and private funds will compensate the balance. This shift to EVs will also help the US against the price volatility of fossil fuels. Funding from the US government and the development of charging stations will boost consumer confidence in buying an EV as this will translate to reduction in emissions and the adoption of clean energy.
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