While insufficient charging previously created a negative feedback loop for EV adoption, the opposite may now be occurring. Nate Smallwood/Bloomberg via Getty Images
Cars are finally catching up to code when it comes to electric vehicle charging in the United States.
Average utilization rates at U.S. fast-charging stations not operated by Tesla Inc. increased last year from 9% in January to December, according to new data from Stable Auto Corp., a San Francisco startup that helps businesses with charging services. It doubled to 18% in 2018. EV infrastructure. To put it another way, by the end of 2023, all fast charging cords in the country were connected for an average of nearly 5 hours per day.
“We're seeing a significant increase,” said Brendan Jones, CEO of Blink Charging, which operates about 5,600 charging stations in the United States. “Market penetration is going from 9% to 10%.” [for EVs]. Even if it stays at 8%, it still won't charge enough. ”
Increased usage is not just an indicator of EV adoption. Stable Auto estimates that for a charging station to be profitable, it needs to deliver electrons about 15% of the time. In that sense, Stable CEO Rohan Puri said the surge in users meant that many broadcasters were turning a profit for the first time.
This is “a threshold that really lifts my spirits,” Kathy Zoe, former CEO of EVgo Inc., said on an earnings call in September. “We believe the future outlook for network profitability is stronger than ever.'' EVgo operates approximately 1,000 stations in the United States. In September, almost a third were humming at least 20% of the time.
EV charging has long been a chicken-and-egg situation, particularly in the U.S., where vast interstate highways and a conservative approach to government subsidies have limited the pace of expansion. ing. Charging networks have struggled for years due to slow EV adoption, even as many drivers avoided EVs due to a lack of charging options. This disconnect spurred the development of the National Electric Vehicle Formula Infrastructure Program (NEVI). The program just launched $5 billion in federal funding to ensure public fast-charging stations at least every 50 miles along the nation's major mobility corridors.
But even though little of that money has been distributed so far, America's electric ecosystem is beginning to reach parity between cords and cars. One study found that U.S. drivers welcomed nearly 1,100 new public fast-charging stations in the second half of last year, a 16% increase. bloomberg green Analysis of federal data. By the end of 2023, there were approximately 8,000 ready-to-charge EV locations (28% of which were Tesla-only). In other words, there is currently one Quick Turn EV station for every approximately 16 gas stations in the United States.
“There is a widespread belief in the industry that fast charging is not a profitable business,” Puri said. “But what we're seeing is that that's no longer the case for many stations.”
Drivers interested in EVs
In many states, charger utilization rates are already well above the national average. Connecticut, Illinois, and Nevada are the states where fast-charging cords are currently connected for eight hours a day. Illinois' average charger utilization is 26%, the highest in the country.
Importantly, even though thousands of new fast charging stations have come online, these stations are far more congested, meaning EV adoption is outpacing progress in infrastructure development. . The increase in uptime is even more remarkable considering that charging networks have long struggled to keep devices online and operating properly.
However, revenues are declining. Blink's Jones said charging stations may not be profitable until usage rates are around 15%, but once usage approaches 30%, charging stations will become sufficiently crowded that drivers will stop using them. He says he will start avoiding it. “[When] “Once you get over 30, you start worrying about whether you need another charger,” he said. “We started getting complaints.”
While insufficient charging previously created a negative feedback loop for EV adoption, the opposite may now be occurring. Charging networks will be encouraged to build more stations in more locations as they see improved economics and, in some cases, a boost from federal funding. As more charging stations become available, more EV-minded drivers will turn to battery-powered vehicles.
Stable Auto analyzes 75 different variables when determining whether a location is suitable for fast charger installation. In particular, it analyzes how many other stations are nearby, how crowded they are, etc. That model is increasingly being greenlit. “Everyone will see more engaging sites on our platform,” Lohan said.
There will also be more charging options this year as Tesla begins opening up its Supercharger network to vehicles from other automakers. The company is responsible for just over a quarter of all fast-charging stations in the US, but its locations tend to be large, so roughly two-thirds of all cords in the US are Tesla ports. It is aimed at
