Penetration of electric vehicles (EVs) has been quite evident across the globe. The US has observed a substantial rise in the share of electrified vehicles across its fleet, mainly due to the increasing focus of industry players and the government to reduce carbon footprints. Growing environmental pollution has been a major concern globally, so various governments are implementing policies and strategies to curb pollution. Many nations have announced their targets to gradually reduce their dependency on fossil fuels and move to clean energy sources.
Automobiles are one of the major contributors to environmental pollution. In the US, cars and trucks produce around 20% of the country’s greenhouse gas (GHG) emissions. Also, the federal government has set a target of net-zero emission by 2050. Electrification of vehicles has provided significant support to fulfill this target. The US has observed strong growth in the sales of EVs. However, the nation lacks EV infrastructure, and its limited network of charging stations makes it a challenge for many to adopt EVs in the country.
However, the scenario is significantly changing as the EV ecosystem is witnessing the active participation of domestic and foreign automobile players, power companies, and the government. Strong government push and cohesive policies, along with industrial initiatives, are some of the factors that are augmenting the development of the EV infrastructure in the US.
The EV Infrastructure Scenario: Past, Present, and Future
According to International Energy Agency (IEA), in the US Public EV charging stations were up by 40% in 2021. The stock of slow chargers increased by 12% to 92,000 in 2021, however, the count of fast chargers was around 22,000. Cities such as Francisco, Sacramento, Riverside, and Oklahoma have the most DC fast chargers, with 93 to 253 DC fast chargers per million population. San Jose accounts for more than 1,500 public chargers per million population. From 2019 to 2020, total public and workplace charging across the 50 metropolitan areas increased by nearly 30%. As of 2021, there were almost 50,000 EV charging stations functioning in the US, out of which 93% are publicly accessible.
Moreover, the share of the US population living more than 10 km from public charging stations was brought down from 8% to 5% in 2021. The country is focusing on installing an additional 1,185 stations to further bring that percentage down. However, reducing it to zero would require building more than 5,000 additional EV charging stations. The federal government has announced an ambitious target includes 50% of new vehicles sold in 2030 to be electric and 500,000 public charging stations built by that same year. The target is likely to be facilitated by the existing incentives and new funding packages of $7.5 billion to build charging infrastructure and $3 billion for advanced battery supply chains in the Infrastructure Investment and Jobs Act.
What Are Different States Doing to Develop EV Infrastructure?
In the US, states are also actively participating in the development of EV infrastructure by providing funds and forming supportive policies. The soaring number of EVs on road reflects the deployment of charging stations across the country. According to the data published by the California Energy Commission, the sales of EVs in Q12022 increased to nearly 160,000 an increase of 16% from the last quarter. Electric car sales in the US more than doubled in 2021 relative to 2020. By the end of 2030, EV counts are estimated to reach 5 million units in California, resulting in an increasing need for EV charging ports to meet the demands of the e-mobility market. California has approved a budget of $437 Million to build thousands of electric vehicle charging stations, making it the largest ever utility program to include over 40,000 charge ports across the state. Moreover, in 2021 over 47 states, along with the District of Columbia, offered incentives to push the deployment of EVs.
The Need for EV Charging Stations in the US
The electric vehicle market is expected to grow in future years, however, well-developed charging infrastructure is needed to encourage prospective buyers in the US. Greater and more widespread adoption of EVs reflects an increased need for charging stations. Active participation of industry players, power companies, and governments is needed to strategize the development of EV infrastructure.
Contributing Author: Divyanshu Sharma, Co-founder and Director, RationalStat LLC
Divyanshu Sharma is an experienced market research consultant. He helps growth-driven organizations and entrepreneurs understand market entry prospects, industry assessment, and grow their revenue strategically. He is a Co-founder and Director of RationalStat LLC, a leading global market research & procurement intelligence firm with over 10 years of industry expertise. He is a skilled market researcher with a demonstrated record of working in the Automotive & Transportation, Information & Communication Technology (ICT), Logistics, Healthcare, Chemicals & Materials, Industrial Automation, Packaging, Green Energy, Pulp & Paper, Oil & Gas, and Food & Beverages industries. To learn more about him, visit: https://www.linkedin.com/in/divyanshu-sharma-7226a516b/