Strong demand for new electric vehicles is outpacing automakers’ ability to keep up with it, but installation of EV charging stations is even further behind, experts told CSP.
With support from car makers and state and federal governments, convenience stores and travel centers are working to increase the number of EV charging stations.
Pilot Co. said it will install 14 EV charging stations in Ohio, or more than half of the 27 charging stations planned for Ohio’s major interstates through the National Electric Vehicle Infrastructure (NEVI) program. The state’s DriveOhio program last week awarded grants for EV charging installations with $18 million in funds from NEVI and private investments, and $9.6 million was awarded to Pilot Co. to cover a portion of the installation costs, the company said.
Over the next five years, Ohio expects to receive $140 million in NEVI funds for EV charging stations, according to the governor's office.
More EVs than Chargers
The number of EVs on the road clearly is ahead of the number of charging stations.
“Pilot has seen an uptick in the number of EV drivers, and a highway-based charging network with frequent opportunities to fuel is a critical component to combat range anxiety and further EV adoption,” Tim Langenkamp, vice president of business development and sustainability at Pilot Co., told CSP. Pilot Co., based in Knoxville, Tennessee, owns Pilot Travel Centers, Flying J Travel Plazas and One9 Fuel Network locations. The company plans to open over a dozen travel centers and add over 20 dealer locations by the end of the year, the company said.
Federal dollars for EV charging stations are just beginning to make their way to state and local governments, which in turn are providing grants for EV charging installations.
Prior to the NEVI grants, Ohio had about 1,623 charging stations, ranking it tenth in the nation, according to Here Technologies’ data on EV charging. With 37,300 EV registrations in the state, Ohio has about 23 EVs per charging station and about 316 EVs per 100,000 people.
Supply and Demand
The number of EVs on the road would be higher if carmakers could keep up with demand. “Currently, demand is running ahead of supply,” automaker GM told CSP Daily News.
Shortages of minerals and metals needed for batteries used in both electric vehicles and some charging stalls are contributing to the backlogs, and automakers are making investments in mineral extraction facilities to ensure they’ll have the materials they need in the future to keep up with growing demand.
“We need more EVs to satisfy customers and are working to increase production,” GM said.
One of the most popular EVs on the market in a lower price point, with a manufacturers’ suggested retail price of $26,500, is the Chevy Bolt EV ad Bolt EU. GM has limited inventory of both, the company said July 14.
“Our EV sales increased more than 100% in the second quarter, compared to the same period a year ago. If you’re comparing Q2 sales to Q1—the level was similar, but constrained in Q2 mainly due to low inventory for the Chevrolet Bolt EV and Bolt EUV (due to extremely high sales rate—sales of Bolt EV and EUV increased more than 100% in Q2.) For other EVs in production now (such as Cadillac Lyriq, BrightDrop Zevo 600 electric delivery van and the Hummer EV), we’re working to increase production to satisfy customer demand,” GM’s spokesperson said.
To ensure strong demand for EVs continues, GM is investing in EV charging stations to reduce so-called range anxiety that has prevented some car-buyers from considering EVs. Range anxiety—or concern about not being able to recharge an EV when it’s on the road—is expected to shrink as EV charging stations are installed in more locations. “Through GM's metropolitan fast charging program, GM and EVgo plan to install 3,250 DC fast chargers in 50+ major metro areas for EV drivers who live in multi-unit homes, rentals or are otherwise unable to charge at home or work. We’ve installed hundreds of chargers in 25 states so far,” GM said. Both companies have agreed to adopt the North American Charging Standard connector developed by Tesla in the future.
Community Chargers
GM also is working with its dealers to ensure the communities they serve will have EV charging stations in place. M ore than 1,000 GM dealers have enrolled in its Dealer Community Charging Program involving public Level 2 EV charging stations in infrastructure in dealers’ local communities, but not on dealership lots, GM’s spokeperson said. “Dozens of chargers have been installed in three states and 100-plus more chargers have been shipped for installation,” the spokesperson said.
Pilot Co. also expects to benefit from the growing number of EVs. “Pilot Co., General Motors and EVgo have been working in lockstep to ensure we are supplying the resources required to meet America’s growing EV appetite. We are also working to secure funding from local, state and federal agencies,” Langenkamp said.
GM also has invested in a lithium facility. In January, it agreed to make a $650 million equity investment, along with Lithium Americas Corp., to develop the Thacker Pass lithium mine in Nevada. Lithium from the mine is expected to support production of up to 1 million EVs per year.
“GM has secured all the battery material we need to build more than 1 million EVs annually in North America in 2025, and our future production will increasingly draw from domestic resources like the site in Nevada we're developing with Lithium Americas,” said GM Chair and CEO Mary Barra in a news release. “Direct sourcing critical EV raw materials and components from suppliers in North America and free-trade-agreement countries helps make our supply chain more secure, helps us manage cell costs, and creates jobs.”
GM plans to use lithium carbonate from Thacker Pass in its Ultium battery cells because the material stands up to repeated charging and offers more capacity and higher-energy density than other battery types, GM said. Among the vehicles GM has in development that will use the it in Nevada for its Ultium Platform include the GMC Hummer EV Pickup and SUV, GMC Sierra EV, Cadillac Lyriq, Cadillac Celestiq, Chevrolet Silverado EV, Chevrolet Blazer EV, Chevrolet Equinox EV, BrightDrop Zevo 400 and BrightDrop Zevo 600.
Double Volume
“We met our target to produce 50,000 EVs in North America in the first half. Our target is to double that in the second half and grow from there. Our production target from 2022 through the first half of 2024 is 400,000 in North America,” GM’s spokesperson said, noting the numbers are production targets rather than sales targets and vehicles produced in a certain quarter may be delivered to customers and counted as sales in the following quarter. GM’s U.S. EV sales in the second quarter totaled over 36,000, the company said, noting the number doesn’t include EVs built in the quarter but not delivered to dealers and customers and these pledged sales aren’t reflected in the second-quarter numbers.
Nationally, the Biden administration has announced goals of a nationwide network of 500,000 chargers installed by 2030 and to help cut fuel emissions 50%. He also would like EVs to represent half of all new vehicle sales in the United States by 2030. In May, U.S. and Canadian officials announced an agreement to build a U.S.-Canada EV charging corridor from Quebec City to Kalamazoo, Michigan with EV charging ports every 50 miles or so.
EVgo, which has grown through partnerships with vehicle manufacturers, fuel stations, retailers and fleets, is forecasting DC charging demand will achieve a 55% compounded annual growth rate from 2022 to 2030, according to an EVgo snapshot of the EV market, which lists partnerships with the following vehicle manufacturers: GM, Hyundai, Subaru, Cadillac, Kia, Toyota, Chevrolet and Nissan, Uber, Lyft, Amazon and MHX.