Plenty of big automakers are committed to electric vehicles. However, despite the surging commitments, there’s still a major barrier these industry giants must break through for these lofty investments to prove successful: charging infrastructure.
Yet, the numbers companies are ready to spend on the EV revolution are staggering: Ford (F) expects to spend $50 billion by 2026, while General Motors (GM) intends to invest $35 billion by 2025. Volkswagen’s (VWAGY) EV agenda includes almost $200 billion through 2028.
Despite these huge investments, Americans aren’t quite as sold on EVs. Only 4% of Americans owned an electric vehicle as of April, while 12% were considering buying one, according to a Gallup survey . And a June study by Cox Automotive showed 32% of potential EV buyers are hesitant to take the leap due to sparse charging station options in their vicinity.
It’s easy to forget just how many gas stations line our streets to meet our driving needs. But EV drivers know the electric equivalent is far more scarce. And while home charging is an option for some, installation can be pricey and lead to higher electric bills.
The number of public charging stations is expanding, with legislations like the Inflation Reduction Act driving adoption through tax incentives. The Bipartisan Infrastructure Law of 2021 earmarkeds $5 billion to boost EV charging infrastructure through 2026, with a goal to install 500,000 new EV chargers strewn across America by 2030 and ensure no highway exceeds 50 miles without a charging station.
And it’s not just governmental bodies making moves to supercharge EV adoptions. Tesla (TSLA) has made deals with automakers like GM, Volvo (VLVLY), and Rivian (RIVN) to open its expansive charging network to other EVs.
Still, the U.S. charging infrastructure today is just a spark. Only time can tell if it will light the EV adoption fire.
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