The Biden Administration’s $7.5 Billion Investment in EV Chargers

Overview

• The number of publicly-funded chargers is expected to grow significantly this year
• States need to submit plans to the administration and solicit bids to construct the chargers
• The $7.5 billion in funding is enough for approximately 20,000 charging points

It has been over two years since the Biden administration announced a $7.5 billion investment to establish a nationwide EV charging network with the goal of having 500,000 charging points in operation. However, as of March 2024, only seven EV charging stations have been built using these funds.

State Allocations

Of the administration’s investments, $5 billion has been allocated to individual states to build chargers along major highways. States must submit plans and solicit bids for the work to activate the funds, leading to a slow roll-out of the stations.

The seven stations built so far are located in Hawaii, New York, Ohio, and Pennsylvania, offering charging points for 38 vehicles. Construction is underway in four other states, with twelve additional states awarded contracts for new charging stations.

Future Prospects

Analysts believe that the administration’s investments can support the construction of up to 5,000 stations or around 20,000 charging points. Despite initial delays, experts anticipate a ramp-up in construction activities in the coming year.

According to Atlas Public Policy founder Nick Nigro, state transportation agencies are the recipients of the funding and are expected to accelerate the deployment of electric vehicle charging stations in 2024.

New Standards

Publicly funded chargers must meet stringent requirements, including working 97% of the time, providing 150 kW of power each, and being within one mile of an interstate. These standards have contributed to delays in their introduction.

The White House remains committed to achieving 500,000 charging points by 2026, despite concerns raised by some members of the House of Representatives regarding the slow roll-out and management of taxpayer dollars.

Overall, while challenges exist, the Biden administration’s investment in EV chargers aims to revolutionize the electric vehicle infrastructure in the United States.