EV charging sites set to outnumber gas stations by 2032

Author

Colin Velez
July 19, 2024

The growth of EV charging infrastructure is on track to explode over the next decade, with new estimates placing the day chargers outnumber gas stations within eight years.

Why this matters: Since limited driving range is a critical pain point for consumers, more infrastructure could drastically change the dynamics of the electric car sector, making EVs far more appealing to a wider audience. Charging stations are especially critical (and currently rare) in areas with low population density, since drivers in these regions typically need to travel further than those in urban environments to reach their destinations.

The EV infrastructure boom:

  • According to Bloomberg, 704 new fast-charging stations were completed over the course of Q2, up 9% from the previous quarter.

  • That puts the total number of fast-charging sites in the U.S. close to 9,000 (Note: this number refers to individual locations with one or more chargers. The total number of individual chargers was around 61,000 in Q1 of this year). Keeping up this pace of growth in the coming years would see EV fast-charging sites outnumber gas stations by 2032.

  • However, this assumes that the rate of investment in EV infrastructure holds steady, which, at the moment, doesn’t appear likely.

  • Instead, spending is projected to rise from $6 billion in 2024 to around $12 billion by 2030, significantly improving the rate of expansion. Businesses have already doubled their investments in electric car charging from last year.

What’s driving this push?

  • While some of the investment into EV infrastructure is coming from the car industry, other sectors are starting to show more interest.

  • Gas station franchises such as Shell added around 56 new charging stations in Q2, according to data from the Department of Energy. Retail and food chains are also showing interest in adding their own charging sites.

  • Other investments originate from the government. The National Electric Vehicle Infrastructure (NEVI) Formula Program, a Biden Administration initiative, has allocated $885 million in funding for state-driven charger construction projects in 2024 alone. That’s after spending $1.5 billion in 2022 and 2023.

Extra context: You might have heard NEVI come up in the news recently. The initiative came under fire from Donald Trump and lawmakers earlier this year after it was revealed that only 8 chargers had been built using government subsidies in Q2, far below the thousands promised by the White House. However, this is primarily due to the program’s design; rather than working with companies directly, the federal government allocates money to states that must then arrange contracts with charging providers. This and a mountain of regulation have led to a painfully slow rollout. Nevertheless, construction is expected to dramatically increase in the coming months, with states having already arranged for 550 new stations

Bottom line: As the rate of investment into EV infrastructure continues to grow, so too will consumer adoption. At the same time, this all assumes that support from the government and the auto industry remains intact after the 2024 presidential election. If NEVI and other electrification-focused subsidies end sooner than intended, we could see a very different story play out over the coming decade.

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