Fast-charging stations for EVs expanding rapidly in the US
What's the story
The US has experienced a significant increase in the number of public fast-charging stations for electric vehicles (EVs), with nearly 600 new stations activated in the first quarter of 2024. This represents a 7.6% rise from the end of 2023, according to Bloomberg Green's analysis of federal data. The total number of rapid EV charging stations across the nation now stands at almost 8,200, equating to one station for every 15 petrol/diesel stations.
Market dynamics
Tesla's contribution to fast-charging facilities
Tesla accounts for slightly more than a quarter of these fast-charging facilities. Despite a slowdown, the demand for EVs has not ceased, as stated by Chris Ahn, head of electrification consulting at Deloitte. Ahn also noted that most charging deserts have been eliminated and many location issues have been resolved. This growth in infrastructure is partially driven by an increase in electric cars on the roads, improving economics for companies operating charging networks.
Government support
Federal funding fuels EV infrastructure boom
The first quarter's infrastructure boom was partially fueled by the Biden administration's National Electric Vehicle Infrastructure program, a $5 billion initiative aimed at filling in the remaining gaps in the charging map. This federal funding has recently facilitated the establishment of a fast-charging station at Kahului Park & Ride on Maui, and another one outside Hannaford Supermarket in Rockland, Maine. As states begin to utilize this funding more extensively, US drivers can anticipate an increase in similar openings.
Financial outlook
Future prospects for public-charging revenue
BloombergNEF predicts that yearly worldwide public-charging revenue will climb to $127 billion by 2030, with Tesla expected to account for $7.4 billion of that. "We are getting closer to where a lot of these charging stations actually turn profitable," said Philipp Kampshoff, who leads McKinsey's Center for Future Mobility. Kampshoff also suggested that future EV buyers will likely include more drivers living in apartment buildings who heavily rely on public stations.
Infrastructure expansion
Retailers and states boost charging station growth
Retailers are also contributing to the growth of charging stations, with 10 new chargers opened at Buc-ee's convenience store locations, and another nine at Wawas in the first quarter. The US public charger landscape is rapidly expanding beyond coastal areas. For instance, Indiana activated 16 new fast-charging stations between January and April. Similarly, Missouri and Tennessee each launched 13 new facilities, while Alabama added 11 new charging spots.