Summary
- Federal government allocated $521 million for EV charging infrastructure, but scaling EV production remains a challenge
- Ford shifted strategy at Oakville plant to produce gasoline trucks due to slower EV demand
- Ford saw a 61% increase in EV sales, becoming second-largest EV seller in U.S.
- Tesla secured $3 billion boost for its North American Charging Standard, highlighting its edge in EV network
- U.S. government is on track to achieve goal of 500,000 publicly available EV chargers, with over 192,500 chargers and 71,937 stations currently available
Article
The federal government recently allocated an additional $521 million for electric vehicle (EV) charging infrastructure, but challenges remain in scaling EV production to meet market demands. Ford had to shift its strategy for the Oakville Assembly plant in Canada, delaying EV production due to slower-than-expected demand. Despite this setback, Ford saw a 61% increase in EV sales year over year, solidifying its position as the second-largest EV seller in the U.S. The federal funding is part of a $7.5 billion program to build fast chargers along interstate highways and in underserved communities.
In June 2023, Tesla secured a $3 billion boost by convincing General Motors and Ford to adopt Tesla’s North American Charging Standard (NACS) for their EVs. Tesla’s network covers about 70% of the EV market in North America and is considered more reliable than the competing combined charging system (CCS). American companies like Walmart and 7-Eleven are also expanding their EV charging networks, with plans to increase the number of stations in their locations. Despite reports of a slow rollout of EV chargers nationally, the U.S. Department of Energy remains confident in achieving President Biden’s goal of 500,000 publicly available EV chargers ahead of schedule.
As of August 27, the U.S. had over 192,500 EV chargers and 71,937 stations publicly available, with nearly 1,000 new public chargers being turned on every week. The federal government’s funding, along with state and local funding and private investments, is expected to result in hundreds of thousands of chargers by the end of the decade. The Bipartisan Infrastructure Law passed in 2021 allowed states to begin planning their EV charging infrastructure deployment, and minimum standards for federally funded chargers were released in early 2023.
The goal is to ensure convenience, reliability, and coverage of the EV charging network, with an emphasis on providing fast chargers at least every 50 miles along heavily trafficked corridors. Currently, 80% of EV charging happens at home, with plans to build a robust network of Level 2 chargers close to home and at key destinations. The growing number of chargers demonstrates progress in closing gaps in the infrastructure, and federal funding will help speed up the process of building high-speed chargers along highway corridors.
Despite concerns among consumers about recharging and investor patience for profits, the EV market is steadily growing. The Federal Highway Administration released final standards for EV charging infrastructure funded by the NEVI program, aimed at creating a reliable nationwide network that supports U.S. leadership in EV adoption and generates skilled jobs. The goal is to ensure transparency and equity in the charging infrastructure, with the hope that the convenience and reliability of the network will encourage more EV adoption and support the development of a U.S. supply chain.
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