Insight

Electric-vehicle charging gets a $7.5 billion boost

It will take partnerships to share the costs and risks—and opportunities—now opening up in EV charging.

Bala Lakshman

Bala Lakshman

Managing Director, Strategy, KPMG US

+1 214-840-4005

Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359

Yatin Agarwal

Yatin Agarwal

Associate Director, Strategy, KPMG US

+91-124-6691508

Sai Vangala

Sai Vangala

Director Advisory, Strategy, KPMG US

+1 313-230-3000

The $1.2 trillion infrastructure bill that passed in November could provides a big boost to both sales of battery-electric-vehicles (BEVs) and private investment in charging infrastructure. The bill earmarks about $7.5 billion to establish a nationwide network of 500,000 public chargers by 2030—today the U.S. has about 4 percent of the charging stations to meet projected demand. That will help end the consumer “range anxiety” that has held back EV sales and assure automakers that aggressive investments in EVs will pay off.

What are the opportunities? Energy companies, automakers, tech startups, and utilities are all pursuing investments in BEV charging. Yet it’s unlikely that anyone company or sector can go it alone—the cost and risks are too high. A successful strategy will certainly involve alliances and partnerships with other players to combine resources and expertise. It is also likely that the pace of mergers and acquisitions in the charging business will likely accelerate.

Our paper Electric-vehicle charging gets a jump start, looks at the existing BEV charging infrastructure, major players within, and the expanding opportunities for various players in EV infrastructure.