Insight

Issue 7: Electric-vehicle charging shifts into high gear

KPMG insight on the players in an emerging market

Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359

Bala Lakshman

Bala Lakshman

Principal, Advisory, Strategy - PDT, KPMG US

+1 214-840-4005

Sai Vangala

Sai Vangala

Director Advisory, Strategy, KPMG US

+1 313-230-3000

With billions in federal funds now available, the momentum to help build a nationwide network of BEV charging stations is sure to accelerate. Nevertheless, the amount is still not enough to meet the BEV charging needs expected in the years ahead. That means building and maintaining a countrywide BEV charging infrastructure is too big for one sector.

KPMG Elevate C-suite Perspectives - Electric-vehicle charging shift into high gear

Automakers, energy companies, 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. 

Video transcript

The problem:

At long last, the chicken-and-egg stalemate that has held back battery-electric-vehicle (BEV) sales and investments in charging infrastructure seems poised to finally break. Why? Because tucked away in the massive U.S. infrastructure bill is $7.5 billion earmarked for a nationwide network of 500,000 public vehicle chargers, designed to be in place by 2030.

For automakers, better visibility into when there will be a robust charging network helps validate aggressive plans for the switch to BEVs. Electric utilities and tech startups also benefit. With the federal mandate, there will be more certainty about how to build charging ports, develop the software to manage them, locate charging stations and build infrastructure to bring power to BEV charging sites.

Today, however, the U.S. only has about 4 percent of the charging stations to meet anticipated demand. So, the opportunity is huge—as is the investment required. Depending on BEV penetration and the type of chargers installed, initial investments could be anywhere between $22 billion and $35 billion to build charging infrastructure across major U.S. metropolitan areas (not including suburbs and rural regions).

With billions in federal funds now available, the momentum to help build a nationwide network of BEV charging stations is sure to accelerate. Nevertheless, the amount is still not enough to meet the BEV charging needs expected in the years ahead. That means building and maintaining a countrywide BEV charging infrastructure is too big for one sector. Automakers, energy companies, 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.

Your next steps:

How can these groups seize the opportunity? A successful strategy will likely involve alliances and partnerships with other players to combine resources. But the key to this approach is understanding all the stakeholders involved.

Automakers

This group will want to be in the game, given the huge financial commitments, they plan to make in alternative fuel vehicles, with the top 10 global auto manufacturers planning to invest some $200 billion in the development of BEV and fuel-cell vehicle powertrains.

Startups

They’re pursuing a number of business strategies to gain a foothold: infrastructure owner, network provider, software offering, and hardware manufacturer. Likewise, these startups have several options for monetization.

Oil and gas companies

These companies have networks of gas stations that are logical locations for BEV charging points, and several oil companies have begun taking steps to enter the BEV charging market.

Electric utilities

In the U.S., PG&E has plans to install 7,500 chargers at apartment buildings and workplaces in California, while Southern California Edison is planning to invest $436 million to install more than 38,000 BEV chargers throughout its service area by 2023.

For more on the risks and opportunities in EV charging, please download the KPMG LLP report, “Electric-vehicle charging gets a $7.5 billion boost.”


 

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Contact us

Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359
Bala Lakshman

Bala Lakshman

Principal, Advisory, Strategy - PDT, KPMG US

+1 214-840-4005
Sai Vangala

Sai Vangala

Director Advisory, Strategy, KPMG US

+1 313-230-3000
Yatin Agarwal

Yatin Agarwal

Associate Director, Strategy, KPMG US

+91-124-6691508