US government invests $930m in EV charging infrastructure amidst rising demand
While the take-up of electric vehicles (EVs) is exploding around the globe and in particular in the USA, many potential buyers continue to raise concerns about charging issues.
A number of recent industry reports have placed charging-station availability as a key concern that is holding back new purchases.
A recent McKinsey survey uncovered a number of topics impacting EV sales and believes consumer attitudes about charging could influence the EV market while opening up new opportunities.
McKinsey analysis shows that annual sales of electrified passenger vehicles exceeded 10,000 units in 2022, marking an increase of more than 50% over sales in 2021.
It predicts that sales will reach around 40 million in 2030.
However, McKinsey also notes that an increase of this scale has repercussions that go far beyond sales figures.
“First and foremost, it will require an equally impressive rise in the availability of public and private chargers.”
“In the United States, for instance, about 2.6m ports were available in 2022 but, with the number of EVs increasing every year, the country will need approximately 9.5m ports by 2025 and 28m by 2030,” the report noted.
McKinsey’s report also stated that if the growth in EV charging infrastructure fails to keep pace with demand, consumers may hesitate to make the shift from internal combustion engine vehicles.
Other charging issues, including consumers’ lingering concerns about being able to charge as conveniently as they can fuel up today, could also slow the widespread adoption of EVs.
US investment
This issue has been clearly identified around the globe, with the US government this week announcing it would invest $930m in grants to make at least 500,000 public chargers available by 2030.
The government labelled the creation of a nationwide EV charging network as critical, with EV sales in the nation having more than quadrupled.
More than 4m EVs are now on the road, while the number of publicly available charging ports has grown by nearly 70%.
Private companies have seen the opportunity and are expected to invest more than $232 billion in the EV and battery supply chain.
“America led the arrival of the automotive era and now we have a chance to lead the world in the EV revolution—securing jobs, savings and benefits for Americans in the process,” said US Transportation Secretary Pete Buttigieg.
“This funding will help ensure that EV chargers are accessible, reliable and convenient for American drivers while creating jobs in charger manufacturing, installation and maintenance for American workers.”
Australia also on the case
The Australian government has already made a similar move.
Australia’s Clean Energy Finance Corporation has forecast that EVs could represent 90% of all cars and light commercial vehicles on Australian roads by 2050.
In turn, as part of the “Driving The Nation Fund”, the federal government is partnering with the National Roads and Motorists Association (NRMA) to deliver a ‘backbone’ national EV charging network.
To support this program, the government has allocated $39.3m to help deliver the 117 EV chargers to be located on key highway routes across Australia at an average interval of 150km connecting all capital cities.
The fast-chargers will be compatible with all EVs and accessible by all motorists.
The minimum charging rate for each site will be at least 75kW even when four cars are charging simultaneously.
New sites will complement existing and planned EV charging infrastructure.
Site selection for new EV chargers will target known blackspots, prioritising regional and remote communities.
Grants issued
The NSW government has invested $131m into grants that will co-fund charge point operators to install and operate ultra-fast charging stations at 100km intervals across the state.
$20m has also been announced to support the rollout of EV chargers at thousands of tourist destinations across regional NSW.
The Australian Capital Territory (ACT) government has committed to providing 180 public EV chargers by 2025.
In the Northern Territory, the Electric Vehicle Charger (Residential and Business) Grants Scheme provides funding to buy and install a charger at a residential property or business, with grants of up to $1,000 for a residential property and $2,500 for a business.
The Queensland government, in partnership with local government and industry, will co-fund $10m to support more public charging options.
In South Australia, the government has awarded a $12.35m grant to construct a state-wide charging network.
The Tasmanian government has provided grants covering more than $600,000 in its first round and in the second round allocated $773,000 for 20 fast-charging stations and 23 destination chargers across regional areas and tourism hotspots.
The Victorian government is investing $19m to accelerate the roll-out of EV charging infrastructure across regional Victoria and to support the charging of EV fleets.
Finally, the Western Australian government is injecting $20m to support the creation of an EV charging infrastructure network and has also announced plans to invest $800,000 towards government buildings for the installation of charging stations to support state government EV fleet targets.
The government is also providing $10m over 2022-23 and 2023-24 to deliver grants of up to 50% of the cost of installing EV charging infrastructure for not-for-profits, as well as small and medium-sized businesses.