In the second quarter of 2024, America’s EV charger deserts continued to vanish as various networks activated 704 new public fast-charging stations. This represents a 9% increase over three months, bringing the total to nearly 9,000 public fast-charging sites across the United States. If the current pace continues, public fast-charging sites could outnumber gas stations within eight years. According to BloombergNEF estimates, North American operators will collectively spend $6.1 billion on charging infrastructure this year, almost double the investment in 2023. This annual expenditure is expected to double again by 2030.
Rising Demand for Fast Charging
“We’re seeing demand for fast charging skyrocket,” said Sara Rafalson, Executive Vice President at EVgo Inc., which operates nearly 1,000 stations in the U.S. “We’re continuing to build bigger and bigger stations because we need to keep up with that demand.”
Retailers are increasingly installing EV chargers to attract the nearly 10% of U.S. car buyers opting for electric vehicles. Gas station operators, in particular, are embracing this trend. In the second quarter, Shell debuted 30 new charging stations, Enel opened 11, Pilot Travel Centers added eight, and Flying J rest stops introduced seven new stations.
Transitioning the Fueling Landscape
“We’re getting past a turning point where fueling stations and convenience stores are really seeing the value proposition,” said Sam Houston, Senior Vehicles Analyst at the Union of Concerned Scientists. “It’s a very welcome turn from how they were behaving in the regulatory space even as recently as a couple years ago.”
U.S. Bank also recognises the business potential of EV charging, installing chargers at 39 branches in California in the second quarter. Meanwhile, Waffle House added charging cords to the parking lots of two of its Florida restaurants.
Anticipated Growth in EV Sales
Despite concerns about a slowdown in EV demand, retailers have strong incentives to consider chargers as customer magnets. The International Energy Agency estimated that U.S. sales of fully electric vehicles will soar to 2.5 million in 2025, up from 1.1 million in 2023. “It’s worth remembering that the number of EVs sold in the first quarter is roughly equal to what was sold in all of 2020,” noted EVgo CEO Badar Khan during a May earnings call.
Profitability of Charging Stations
Charging stations are becoming busy enough to turn a profit. At the end of the first quarter, the average U.S. fast-charging station was used about 18% of the time, or nearly five hours a day, according to Stable Auto, a charging network consultant. To be profitable, a station needs to be in use around 15% of the time.
Rafalson pointed out that demand is increasing as people drive their electric cars farther and a greater share of EV owners live in multi-unit developments, where they cannot charge at home. Newer EVs can also charge more quickly, encouraging more drivers to top up while on the go. EVgo’s fastest-growing markets include Texas, Florida, Michigan, and Arizona.
Federal Support and Political Challenges
The Biden administration’s National Electric Vehicle Infrastructure (NEVI) Formula program, a $5 billion initiative, aims to fill the gaps in the charging map. Although still in its early days, the program has already faced criticism. Former President Donald Trump claimed in a Businessweek interview that the White House spent $8 billion to open just seven chargers.
However, eight NEVI-backed stations opened across six states in the second quarter, with more expected soon. Some 23 states have awarded contracts or signed agreements for another 550 stations, according to government data.
Overcoming Charging Anxiety
Despite the rapid expansion, charging anxiety remains a significant concern for potential EV buyers. Houston of the Union of Concerned Scientists attributes this partly to a gap between perception and reality. “Most drivers have no idea how many charging cords are actually all around them,” he said. “It’s important to make sure people are aware of how quickly these stations are coming online.”
The rapid expansion of the EV charging infrastructure is transforming the landscape for electric vehicle owners, making long journeys more feasible and addressing one of the major hurdles in the transition to electric mobility. As more stations come online, the convenience and accessibility of charging will continue to improve, encouraging more drivers to make the switch to electric vehicles.