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U.S. EV Charging Infrastructure Analysis

GOOVER DAILY REPORT October 22, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Current EV Charging Infrastructure in the U.S.
  3. Challenges in EV Charging Infrastructure Accessibility
  4. Legislation and Efforts to Enhance EV Charging Infrastructure
  5. Industry Responses to Charging Infrastructure Challenges
  6. Conclusion

1. Summary

  • This report delves into the current state and challenges of electric vehicle (EV) charging infrastructure in the United States, emphasizing its growth, accessibility issues, and the impact on EV adoption. Despite significant legislative efforts, such as the Inflation Reduction Act of 2022, which has prompted a 29% growth in charging facilities, infrastructure gaps remain a critical barrier to larger EV market penetration. Over 61,000 public charging stations with more than 176,000 ports are now accessible, yet geographical and economic disparities hinder their equitable distribution. The Bipartisan Infrastructure Law aims to address these constraints by funding the development of 500,000 public chargers by 2030. Nonetheless, the current expansion predominantly benefits urban regions, leaving rural areas under-supported. Automotive manufacturers are adjusting strategies in response to uneven consumer demand and charging infrastructure gaps, with a shift towards hybrid vehicles becoming more prevalent due to these limitations.

2. Current EV Charging Infrastructure in the U.S.

  • 2-1. Number of Public Charging Stations

  • As of February 2024, there are over 61,000 publicly accessible electric vehicle charging stations in the United States, with more than 176,000 total EV charging ports, according to the Department of Energy. This represents a significant increase from nearly 29,000 public charging stations reported in December 2020. The growth highlights that as of February 2024, over 95% of the American public resides in counties that have at least one public EV charging station.

  • 2-2. Growth Due to Legislative Actions

  • The electric vehicle charging infrastructure has experienced a growth rate of 29% since the implementation of the Inflation Reduction Act of 2022, which included tax incentives aimed at promoting EV adoption. Legislative measures such as the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act have been pivotal in encouraging the establishment and enhancement of EV charging stations across the U.S. While urban areas are the primary beneficiaries, the expansion efforts have resulted in a faster growth rate of charging stations in rural regions compared to urban ones (34% vs. 29%). However, urban areas still dominate the availability of public charging stations, accounting for nearly 90% of the total.

3. Challenges in EV Charging Infrastructure Accessibility

  • 3-1. Rural and Urban Disparities

  • The electric vehicle (EV) market in the U.S. is experiencing notable growth with over 1 million EVs sold last year, yet there are significant disparities in charging infrastructure accessibility between rural and urban areas. In places like Inglewood, where nearly 70% of the population are renters, there are over 1,000 registered EVs, but the area lacks any public charging stations. This highlights a crucial issue where inadequate power infrastructure, including insufficient electrical substations, further complicates the scenario. In densely populated cities like Los Angeles, the limited availability of parking spaces poses additional challenges to the installation of charging stations. As a response to these challenges, Los Angeles is actively working to install EV chargers on light poles to meet the growing demand for charging infrastructure.

  • 3-2. Impact on EV Adoption

  • The current state of EV charging infrastructure is a significant factor influencing EV adoption across the United States. Research indicates that nearly half of U.S. consumers identify battery or charging issues as their top concerns regarding EV purchases. The limited network of charging stations serves as a deterrent for many potential buyers, exacerbating the challenges in increasing EV sales. Despite EV sales climbing over 40 percent annually since 2016, the inability to secure the necessary charging infrastructure has led to expectations of a decline in the share of electric vehicles in light-vehicle sales, which dropped from 8.1% in Q4 2023 to 7% in Q1 2024. Furthermore, as the U.S. aims for broader EV adoption, the federal government has implemented the Bipartisan Infrastructure Law (BIL), which allocates $7.5 billion to develop public charging infrastructure and aims to create 500,000 public chargers nationwide by 2030. However, projections suggest that even this substantial investment may fall short, as experts estimate that approximately 1.2 million public chargers and 28 million private chargers would be required to adequately support the expected growth in EV ownership by 2030.

4. Legislation and Efforts to Enhance EV Charging Infrastructure

  • 4-1. Bipartisan Infrastructure Law and ZEV Targets

  • The Bipartisan Infrastructure Law (BIL) allocates $7.5 billion specifically aimed at developing the electric vehicle (EV) charging infrastructure across the United States. The primary goal is to install 500,000 public chargers by the year 2030, which must be compatible with all vehicles and technologies. It is projected that this target is still far below the estimated requirement of 1.2 million public EV chargers and 28 million private EV chargers needed by 2030 to effectively support the anticipated growth in EV sales, assuming that half of all vehicles sold are zero-emission vehicles (ZEVs). Currently, there are over 64,000 publicly accessible electric vehicle charging stations and over 176,000 total EV charging ports in the U.S., representing an increase of 29% since the Inflation Reduction Act was enacted in 2022. These developments illustrate the federal government's commitment to mitigate greenhouse gas emissions, as transportation accounts for nearly one-fifth of America's greenhouse-gas emissions.

  • 4-2. Government Incentives and Policy Measures

  • Government incentives and policy measures play a crucial role in promoting the adoption of electric vehicles and the establishment of necessary charging infrastructure. The Inflation Reduction Act of 2022 introduced tax incentives that have contributed to a significant increase in EV charging infrastructure capacity. The BIL requires states to submit plans demonstrating how they will utilize the funding to enhance equity in charger distribution, ensuring that underserved communities and both rural and urban areas benefit from new charging stations. Additionally, a federal executive order issued in 2021 has set ambitious targets for the sale of zero-emission vehicles across the nation, which further reinforces the necessity for widespread access to reliable and affordable charging options for potential EV consumers. However, significant challenges remain in achieving an equitable distribution of chargers and ensuring that the installed infrastructure meets the needs of diverse drivers, particularly in lower-income locations.

5. Industry Responses to Charging Infrastructure Challenges

  • 5-1. Auto Manufacturers' Adjustments

  • The current state of charging infrastructure has led numerous auto manufacturers to reconsider their strategies regarding electric vehicle (EV) production and sales. Due to declining market demand for EVs alongside insufficient infrastructure, many automakers have shifted focus from an aggressive rollout of EV models to promoting hybrid vehicles, which are experiencing increased sales. General Motors, for instance, has reduced its anticipated sales and production of EVs from a range of 200,000–300,000 units to a revised estimate of 200,000-250,000 units. Additionally, EVs represented less than 3% of General Motors' sales in the first quarter. Meanwhile, Ford has faced financial losses from its Model E electric vehicle initiative, despite a rise in combined hybrid and EV sales observed in May. Subsequently, Ford has decided to cancel a previously announced program that mandated significant investments in EV infrastructure by dealers to qualify for the sale of electric vehicles.

  • 5-2. Impact on Used EV Market

  • The state of the EV market and the associated charging infrastructure is directly influencing the pricing dynamics in the used EV segment. Currently, used electric vehicles are being sold for significantly lower prices compared to their gas-powered counterparts. This trend has emerged amidst a backdrop of uneven access to charging infrastructure, which presents accessibility challenges for many potential electric vehicle users across the United States. Data indicates that while there are over 64,000 publicly accessible electric vehicle charging stations and more than 176,000 total EV charging ports, a survey reveals that only about six in 10 Americans live within two miles of a public charger. However, interest in purchasing EVs has dropped, with only 9% of respondents expressing serious interest, down from 12% previously, while the percentage of Americans willing to consider buying an EV has decreased from 43% to 35% over the past year, as per a Gallup poll.

6. Conclusion

  • The complexities surrounding the U.S. electric vehicle charging infrastructure underscore the need for increased and equitable access to charging stations. Although legislative frameworks like the Bipartisan Infrastructure Law and the Inflation Reduction Act of 2022 have paved the way for substantial infrastructure improvements, they also reveal systemic challenges in meeting future demand comprehensively. The report highlights that current targets, such as installing 500,000 public chargers by 2030, fall short of expert estimates, which indicate a requirement for at least 1.2 million public and 28 million private chargers. Auto manufacturers, such as General Motors and Ford, are recalibrating their market approaches in light of stalled consumer interest, steering toward hybrid vehicles as a stop-gap solution. For effective long-term EV adoption, a more inclusive strategy is imperative—one that aligns legislative aspirations with on-the-ground realities, emphasizing broader infrastructure equity across all regions. Continuous research and adaptive policy developments are essential to cultivate an environment conducive to both the technological and consumer demands of the EV market. Addressing these disparities not only improves practical accessibility but also propels the U.S. towards its zero-emission goals through sustainable transportation advancements.

7. Glossary

  • 7-1. Electric Vehicle Charging Station [Technology]

  • Electric vehicle charging stations are essential components in supporting the adoption of EVs by providing the necessary infrastructure for refueling. The report highlights their growth in the U.S., influenced by legislative measures and market demands, reflecting their critical role in transitioning from gasoline to electric mobility.

  • 7-2. Bipartisan Infrastructure Law [Legislation]

  • The Bipartisan Infrastructure Law is significant in allocating funds to develop EV infrastructure in the U.S. The report emphasizes its importance in aiming to install 500,000 public chargers by 2030 to support the shift to zero-emission vehicles.

  • 7-3. Inflation Reduction Act of 2022 [Legislation]

  • This act includes tax incentives to accelerate the adoption of electric vehicles by increasing the availability of charging infrastructure, contributing to a 29% growth in such facilities since its enactment.

8. Source Documents