As convenience stores consider whether and when to install electric-vehicle chargers, a shortage of batteries and domestic auto production could slow growth, according to news reports.
State and federal government funds are providing incentives to propel EV auto sales and EV charging stalls, but the government efforts are being stalled by shortages of necessary metals, minerals and, in some cases, production facilities.
Illinois Gov. J.B. Pritzker headed to the United Kingdom Thursday to entice foreign car manufacturers to consider opening a production facility in the state with a goal of making Illinois an EV hub, the Chicago Tribune reported.
A former Fiat Chrysler Auto Plant in Belvidere, Illinois, was expected to produce EVs for Stellantis, but those plans faded when Stellantis moved EV production to Ontario, Canada, according to news reports. The company’s decision to shutter the plant prompted the United Auto Workers to call for a halt to plant closings.
Pritzker would like another automaker to produce EVs in the state, possibly at the Belvidere site, along with an EV charging network at convenience stores and other locations, according to the Chicago Tribune.
While demand for EVs has picked up in the United States, sales have slowed at some automakers due to materials shortages. To produce enough batteries to power the growing number of EVs expected, major automakers are investing in lithium and metals mines outside of China, which dominates the market and is limiting exports, The Wall Street Journal said.
A battery shortage is producing a backlog of orders at many U.S. car manufacturers and delaying installations of EV charging stations, which often use batteries to keep electric costs low. The Wall Street Journal has reported General Motors’ $650 million investment in a lithium producer, Stellantis’ $155 million investment in an Argentina copper mine, and Ford’s recent investment in a nickel mine in Indonesia. A special purpose acquisition company in the United Kingdom called ACG aims to increase supplies of necessary auto parts to boost EV production. It’s raising over $1 billion to purchase mines to be used for EVs and plans to form a new company called ACG Electric Metals, the Journal reported.
While the number of EV charging stations in Illinois lags other populated states, such as California and Texas, plans are in the works for new installations. Pritzker said Illinois will use funds from a settlement with automaker VW over diesel emissions to build a network of 348 fast-charging points. He also has announced a goal of 100% clean energy by 2050.
The Illinois Environmental Protection Agency is distributing $480,000 in grants to convenience stores and fuel stations for EV charging ports, including bp Pulse, Road Ranger, Pilot Travel Centers, Love’s Travel Stops and GPM Midwest. Hotels and restaurants also are on the list of 348 new Direct Current Fast-Charging ports at 87 locations in the state.
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.
Domestic charging-stall makers are reporting strong sales growth, but use of existing networks is outpacing growth of EV adoption, Los Angeles-based EVgo said.
In the first quarter, ended March 31, EVgo’s revenue climbed 229% to $25.3 million, from $7.7 million in the prior-year quarter, while the company added 67,000 new customer accounts for a total of 614,000 at the end of the quarter, up 63% from the prior-year period. The company said use of its charging network use rose faster than operational stall growth and EV adoption. It posted a net loss of $49.1 million in the quarter, an improvement from $55.3 million in the year-ago period.
“EVgo is investing ahead of the mass adoption of EVs in the United States and installed a record number of new stalls during the quarter. We also announced an exciting expansion of our program with Chevron, which is designed to pave the way for fast charging at conveniently located gas stations across the country. We expect revenue to increase over the remainder of the year as we benefit from increasing EV adoption, the mobilization of new, faster stations, and the deployment of EVgo eXtend sites with our partners,” said EVgo CEO Cathy Zoi.
EVgo had about 3,100 EV stalls in operation or under construction at the end of March, after installing about 220 new DC fast chargers during the quarter, the company said. It also entered into an agreement with Audible to bring podcasts and audiobooks to its network, the company said.
Meanwhile, ChargePoint reported a 59% increase in revenue to $130 million in the first fiscal quarter of the year, ended April 30, but it was the company’s fourth consecutive quarter of slowing sales growth, according to Investors.com. ChargePoint’s costs associated with its networked charging systems and subscription services rose 43%. The Campbell, California-based company posted a net loss of$79.4 million, an improvement from a loss of $89.3 million in the year-ago quarter. Analysts are projecting the company will turn profitable in fiscal 2026.