The rise of electric vehicles in the US: Building a robust charging network

As shown in our first article in the series on EVs, the transportation sector is shifting toward EVs. This shift is driven by decreasing lithium-ion battery costs, increased EV model availability, and substantial investments from the private and public sectors. Governments at various levels are supporting EV adoption through incentives, infrastructure investments, and regulations aimed at phasing out gasoline and diesel vehicles. The decarbonization of the power sector further enhances EV’s environmental benefits, collectively driving a transformative shift in transportation.

However, widespread EV adoption relies on a robust charging network. With the number of EVs projected to reach between 30m and 40m by 2030, the US needs millions more private and public charging ports. Challenges like connector standardization, network interoperability, grid capacity, and the duration to interconnection, the time that it takes to connect a public charger to the grid, persist. Nonetheless, the potential benefits – reduced emissions, enhanced energy security, and renewable energy integration – are substantial. To unlock these benefits understanding the current landscape and future needs, ensuring comprehensive financial support, and industry collaboration can help navigate the opportunities and challenges.

A recent survey by S&P Global Mobility found that 44% of respondents identified charging logistics as one of the top barriers to electric vehicle (EV) adoption. This issue is particularly significant for lower-income consumers who often lack access to adequate charging infrastructure. Addressing these concerns is crucial for achieving US electrification goals and ensuring equitable access to clean energy transportation.

Versatile charging locations and faster charging is crucial for widespread EV adoption

Electric vehicle supply equipment (EVSE), or an EV charger, is crucial for refueling EVs. Unlike traditional internal combustion engine (ICE) vehicles that typically refuel at gas stations, EVs can charge at different locations, such as home garages, workplace parking lots, on the street, or at numerous public locations.

Residential charging (at single-family or multi-family homes) is the most convenient for those with a dedicated parking space near a power source. However, having charging infrastructure at workplaces or in public locations enables longer trips, increases driver confidence, and supports those without home charging options, such as apartment dwellers or individuals with street parking.

The power level of a charger is another key attribute. Table 1 summarizes the charging equipment, locations, charging connector types and typical driving range expected:

Incentives drive public DCFC surge, while private L2 chargers expand for businesses and fleet use

According to the US Department of Energy's (US DOE) Alternative Fueling Station Locator, as of July 2024, there are around 177,000 publicly accessible charging ports in the US (see figure 1). These include 43,500 DCFC ports and about 133,750 L2 ports, typically found in public spaces such as on-street parking, parking lots, shopping centers, community centers, and highway corridors.

Additionally, privately accessible charging infrastructure, located in areas with restricted access, such as workplaces and fleet facilities, shows significant development with about 2,150 L1 ports, 13,700 L2 ports, and 430 DCFC ports (see figure 2).

Source: US DOE AFDC, RaboResearch 2024

Growth rates for public charging ports have varied over the years. Public L2 chargers saw a peak growth rate of 120% in 2021, but this growth declined to 3% in 2023. Conversely, public DCFC ports exhibited substantial growth, with increases of 22% in 2022 and 58% in 2023. This significant growth in public DCFC ports can be attributed to targeted federal and state incentives, particularly through the NEVI Formula Program,[1] which has driven substantial investments.

High-capacity DCFC stations address range anxiety, one of the primary concerns for potential EV owners, by reducing charging times and making long-distance travel more feasible. This strategic focus on enhancing DCFC infrastructure is essential for meeting the national EV adoption targets set by the Biden administration[2] and ensuring the reliability and convenience of the charging network for all users.

Meanwhile, the growth in private charging infrastructure shows a slightly different trend. Private L2 ports grew by 22% in 2021, 12% in 2022, and 9% in 2023. Private DCFC ports saw moderate growth rates of 44% in 2021, 8% in 2022, and 10% in 2023, indicating a steady expansion of private charging infrastructure, particularly for L2 ports.

This trend can be attributed to several strategic factors. First, Level 2 chargers are cost-effective and easier to install compared to DCFC, making them an attractive option for businesses and fleet facilities. Additionally, for commercial light-duty fleets, where average daily miles traveled range between 72 and 87,[3] Level 2 chargers provide 10 to 20 miles of range per hour of charging, adequately meeting the daily needs of these vehicles without the significant investment required for DCFC installations.

Federal legislation and incentives are crucial for expanding the EV charging network

The Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) are critical legislative frameworks supporting the energy transition in the US. The Biden administration aims to deploy 500,000 EV chargers nationwide by 2030. The IIJA allocated USD 7.5bn specifically for EV charging infrastructure, split between the USD 5bn National Electric Vehicle Infrastructure (NEVI) Formula Program and the USD 2.5bn Charging and Fueling Infrastructure Discretionary Grant Program. These programs are designed to ensure a cohesive and comprehensive network of chargers across the country.

Additionally, the IRA provides substantial incentives to expand EV charging infrastructure. The Section 30C Alternative Fuel Vehicle Refueling Property Credit extends a tax credit for alternative fuel vehicle refueling properties, including EV chargers. It covers 30% of the cost, up to USD 100,000 per unit. This applies to both residential and commercial installations. This provision accelerates the deployment of EV chargers across various settings. Furthermore, the Advanced Manufacturing Production Tax Credit (45X) supports the production of clean energy components, including EV chargers, reducing manufacturing costs and promoting innovation in the sector.

By leveraging these tax credits and funding programs, the US aims to create a robust and accessible EV charging network, facilitating the widespread adoption of EVs and contributing to the nation's broader climate goals.

Investments from private companies and utilities are expanding the US EV charging network

As of January 2024, the White House estimated that more than USD 20bn had been invested in the US EV charging network. This includes USD 5bn from the NEVI program and USD 2.5bn from the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. More than USD 10bn came from the private sector,[4] with contributions from companies such as Tesla, Electrify America, bp, General Motors, Daimler, and Mercedes. Additionally, charging companies such as ChargePoint, EVgo, Blink, and Volta,[5] raised USD 3bn in capital, some of which is to be invested in EVSE hardware and installation. Utility companies have also played a significant role in the expansion of the EV charging network, with USD 2bn in approved utility filings led by companies including Southern California Edison, Con Edison, National Grid, and Pacific Gas & Electric.[6] Some of the planned EV charging infrastructure investments have been summarized in figure 3.

[1] US Department of Transportation, Federal Highway Administration, National Electric Vehicle Infrastructure (NEVI) Program

[2] https://www.whitehouse.gov/briefing-room/statements-releases/2023/04/17/fact-sheet-biden-harris-administration-announces-new-private-and-public-sector-investments-for-affordable-electric-vehicles/

[3] Transportation Energy Data Book:Edition 40, Stacy C. Davis, Robert G. Boundy, Oak Ridge National Laboratory, February 2022

[4] https://www.whitehouse.gov/briefing-room/statements-releases/2024/01/19/fact-sheet-biden-harris-administration-announces-new-actions-to-cut-electric-vehicle-costs-for-americans-and-continue-building-out-a-convenient-reliable-made-in-america-ev-charging-network/

[5] https://driveelectric.gov/news/private-innvestment

[6] https://www.vgicouncil.org/utility-collaboration-forum-launch

ChargePoint and Tesla dominate the US EV charging network

In the US, EV chargers are predominantly owned and operated by private charging network companies. These companies typically require users to have memberships to access their chargers. They often connect their sites through the internet to collect data and offer services to install and maintain EV stations for customers.

There are more than 50 different EV charging network companies across the US, together controlling more than 130,000 L2 charging ports and 40,000 DCFC ports. Most of these networks operate fewer than 1,000 ports, with many either located in specific geographic regions or offering specialized services.

ChargePoint hosts the largest L2 network and the fourth-largest DCFC network of EV charging stations in the US, with approximately 44% of all L2 ports across the nation (see figure 4). Tesla operates nearly 26,000 DCFC ports, making it the largest DCFC network and accounting for about 59% of the market (see figure 5). This dominance highlights Tesla's strategic emphasis on high-speed charging solutions to alleviate range anxiety among its EV users. Moreover, Tesla has recently opened its charging network to EVs from other manufacturers, further enhancing its accessibility.

Approximately 13,897 L2 ports and 1,338 DCFC ports are classified as non-networked. These stand-alone units are not associated with a larger network, making them less visible to the general public but crucial in certain locations.

To support the ambitious targets set by the US government for EV adoption and the resulting demand for charging, significant advancements and strategic investments in charging infrastructure are imperative.

Ambitious targets and strategic investments for EV charging expansion

In August 2021, the Biden administration issued an executive order setting ambitious targets for EV adoption, aiming for 50% of all new passenger vehicles sold in the US by 2030 to be zero-emission vehicles, including EVs. To support this transition, President Biden committed to providing support to facilitate building a national network of 500,000 EV charging ports by 2030. This extensive network is essential for addressing the primary concern of potential EV owners: the availability of reliable and convenient charging infrastructure.

A critical component of this initiative is the NEVI Formula Program, which also mandates that newly installed DC fast chargers must have a power output of at least 150 kW to qualify for funding. This requirement ensures the development of high-capacity charging solutions that can significantly reduce charging times, thereby improving the practicality and appeal of EVs for both long-distance travel and everyday use. By setting these ambitious targets and providing substantial investments, the Biden administration aims to create a cohesive and comprehensive charging network, accelerating the transition to a sustainable transportation future.

EV Projections underscore the need for expanded charging infrastructure

In my previous article on the rise of EVs in the US, I referenced Bloomberg New Energy Finance (BNEF)'s projection of approximately 36m EVs on US roads by 2030. As illustrated in figure 6, additional data sources provide a range of projections. Despite the differences, the key takeaway is the consensus on the expected rapid, exponential growth over the next seven years. This highlights the substantial demand for expanded charging infrastructure to support the anticipated surge in EV adoption.

Significant expansion of public-access chargers is critical to support growing EV adoption

Given the anticipated rise in EV adoption, various projections estimate the number of charging ports required by 2030, based on different assumptions and methodologies (see figure 7). Most projections indicate that more than 85% of future charging infrastructure will consist of private-access chargers. These include chargers in single-family houses with driveways and garages, multi-family housing with dedicated parking spaces, workplaces, and fleet and depot facilities. This expectation aligns with the convenience of charging vehicles at home or fleet facilities overnight, where the vehicles remain parked for extended periods, making off-peak charging efficient and practical. This approach leverages existing residential electrical infrastructure and helps balance the grid by avoiding peak demand periods.

Public-access chargers, forecasted to make up less than 15% of the required charging ports in 2030, will be critical in complementing private charging infrastructure. They are particularly important for addressing range anxiety, which is a significant barrier to EV adoption, and for providing solutions for those without home charging access. Additionally, public chargers are essential along highway corridors, offering accessible and reliable charging options for travelers journeys.

Figure 8 takes a closer look at the significant number of public-access charging ports required by 2030 to meet future demands, according to different sources. These projections highlight a substantial gap between the current infrastructure and future requirements. For instance, considering the EV forecasts from NREL and BNEF, which fall in the middle of the range of projections shown in figure 6, an estimated 33m to 36m EVs are forecasted by 2030. To meet this demand, NREL has forecast the need for around 1,067,000 public-access L2 chargers, representing nearly an eightfold increase from the current 134,000 public L2 ports. Additionally, NREL forecast the need for 182,000 DCFC ports by 2030, compared to the current 19,500 DCFC ports capable of providing 150 kW or more of power, indicating a nearly tenfold increase required to meet future demand. This data underscores the urgency for substantial investment and coordinated strategic planning from federal and state governments, the private sector, and utility companies to build a comprehensive and accessible charging network nationwide.

Significant investment and streamlined processes are crucial to meet the 2030 demand for EV charging infrastructure

To meet the forecast demand for EV charging infrastructure by 2030, significant investment is required. Projections from various sources suggest much higher levels of funding will be necessary to adequately support the anticipated growth in EVs and the associated charging infrastructure needs (see figure 9). Each bar in the figure represents the investment need estimated for the scenario of the specific source (e.g., NREL). The investment figures provided primarily account for EVSE hardware and installation costs, excluding the costs associated with necessary upgrades to the electrical grid, which are crucial for supporting widespread EV adoption.

The gap between current investment and projected investment for private and public charging infrastructure highlights the need for substantial financial or other support. To help mitigate the expenses of installing private-access charging, federal, state, and utility-level incentives are available. For instance, the federal tax credit for installing EV charging stations can cover up to 30% of the installation costs. Additionally, state and utility incentives can range from USD 500 to USD 5,000 per charger, depending on the location and type of installation.

Interconnection times from utilities, to connect publicly accessible chargers to the distribution system, currently range from six to sixteen months, depending on the region and regulatory environment. Streamlining these processes can significantly reduce the time required to bring new chargers online. For example, North Carolina's Duke Energy Make Ready Credit program shifts the responsibility of bringing electricity to EV charging stations from station owners to utilities, reducing installation costs and accelerating deployment. Upgrading the grid to handle increased demand from EVs is also essential. The current infrastructure may not support the rapid expansion needed, necessitating proactive planning and investment from utilities.

Standardizing connector types and improving network interoperability are crucial for creating a seamless and efficient EV charging experience

The transition to a robust and widespread EV charging infrastructure faces several key challenges, particularly around connector type standardization and network interoperability. Addressing these challenges is critical for enhancing the user experience and ensuring the efficient deployment and utilization of charging infrastructure.

Connector type standardization

One of the primary challenges in the EV charging ecosystem has been the lack of standardization in connector types. Historically, different EV manufacturers have used various connectors, leading to compatibility issues and inconvenience for users. However, significant progress has been made toward standardization in the US, particularly with the adoption of Tesla’s North American Charging Standard (NACS). The move toward NACS as a common standard is a significant step forward. Car manufacturers such as Ford, General Motors, Hyundai, Rivian and others have announced plans to adopt NACS for their future EVs. This will help create a more unified charging experience for EV owners, alleviating the inconvenience of carrying multiple adapters and enhancing the overall accessibility of charging infrastructure.

Network interoperability

Another major challenge is network interoperability. The current charging network landscape is fragmented, with various operators and platforms that often do not communicate with each other. This fragmentation can lead to a suboptimal user experience, where EV drivers might face difficulties in finding available chargers, handling different payment systems, and accessing reliable charging services across different networks. Some areas of opportunity include:

Such approaches can lead to the development of common standards and protocols, enhancing the efficiency and reliability of the charging network.

Emerging technologies will transform EV infrastructure and meet diverse needs

Advancements in charging technology will further support the EV infrastructure expansion. Innovations such as megawatt charging, wireless charging, and at-home DC wallbox solutions are poised to revolutionize the charging landscape. Companies like ABB and Siemens are leading the development of megawatt charging for heavy-duty vehicles, while WiTricity and Plugless Power are pioneering wireless charging technologies. These innovations will play a crucial role in meeting the diverse needs of future EV users, ensuring a robust, efficient, and user-friendly charging network.

US EV adoption depends on robust charging infrastructure and industry collaboration

The future of EV adoption in the US hinges on the successful development and deployment of a comprehensive charging infrastructure. By addressing the projected gaps, embracing technological advancements, and fostering industry-wide collaboration, the US can achieve its ambitious goals and pave the way for a sustainable transportation future.

In our next article, the last of this series, we will explore the impact of EVs and charging infrastructure on electricity demand. We will discuss the challenges and opportunities this presents, and the strategies needed to ensure a reliable and resilient energy supply.