As the Biden administration rushes to finalize its spending on electric vehicles (EVs) before Donald Trump takes office, the US Department of Energy has announced a $1.25 billion loan to EVgo, an electric vehicle charging company. This move demonstrates President Joe Biden’s intent to allocate as much funding for EV projects as possible before leaving office.
The Loan and Its Implications
The $1.25 billion loan will be used by EVgo to install approximately 7,500 chargers at around 1,100 charging stations across the US over the next five years. A particular focus will be on fast-charging 350kW stalls that can charge two vehicles simultaneously. This investment is a significant step towards addressing one of the most pressing issues hindering EV adoption: the lack of reliable and efficient charging infrastructure.
The Biden Administration’s Commitment to EVs
President Joe Biden has made it clear that he intends to allocate as much funding for EV projects as possible before leaving office. This commitment is a response to Trump’s promise to reverse or cancel much of the spending on EVs by the Biden administration once he assumes office. Trump has vowed to eliminate the $7,500 tax credit for new EV purchases and wipe out the rest of the spending from the Inflation Reduction Act (IRA) on EV charging infrastructure.
Recent Loan Approvals
With less than a month left in office, the Energy Department has been rapidly approving EV-related loans. Some recent approvals include:
- Stellantis and Samsung: $7.54 billion for a battery factory in Indiana
- Rivian: $6.6 billion for an EV plant in Georgia
These loans are not only intended to support the development of EV infrastructure but also to create jobs. For example, EVgo’s expansion project is expected to generate 180 external construction jobs and over 550 maintenance and support jobs.
The Challenges Facing EV Adoption
One of the most significant barriers to EV adoption is the fragmented and frustrating nature of our current EV charging landscape. Owners frequently complain about unreliable charging or broken equipment as one of the most frustrating things about driving an EV.
Biden’s Plan to Spur EV Sales
After his election, Biden vowed to build 500,000 chargers by 2030 as a way to spur more EV sales, including $7.5 billion for charging expansion in the Bipartisan Infrastructure Bill. While the first few years of funding were sluggish, recent updates have shown that things are finally picking up.
The Current State of EV Charging
In its release, the DOE stated, "there are currently more than 204,000 publicly available charging ports, with nearly 38,000 new public chargers already having been added this year and nearly 1,000 new public chargers being added every week thanks to a combination of direct federal funding, federal tax incentives, state and local funding, and private investment." This includes both Level 2 chargers and DC fast chargers.
Conclusion
The $1.25 billion loan to EVgo demonstrates President Joe Biden’s commitment to supporting the development of reliable and efficient EV charging infrastructure. As the US transitions towards a more sustainable transportation sector, investments like this will play a crucial role in addressing the challenges facing EV adoption.
Key Takeaways
- The US Department of Energy has announced a $1.25 billion loan to EVgo, an electric vehicle charging company.
- The loan will be used to install 7,500 chargers at around 1,100 charging stations across the US over the next five years.
- President Joe Biden is intent on allocating as much funding for EV projects as possible before leaving office.
- Trump has vowed to reverse or cancel much of the spending on EVs by the Biden administration once he assumes office.
- Recent loan approvals include $7.54 billion for a battery factory in Indiana and $6.6 billion for an EV plant in Georgia.
