California-based electric-vehicle charger operator, EVCS, is seeking a substantial investment of $125 million to fuel its ambitious expansion strategy, as it aims to capitalize on the U.S. government’s push for widespread electric vehicle (EV) adoption. A recent document viewed by Reuters reveals the company’s plans to increase its network of fast chargers eightfold by 2025, in line with the Biden administration’s goal of making EVs account for 50% of new-vehicle sales in the United States by 2030.
The growing importance of electrifying U.S. highways through a $5 billion federal program and market leader Tesla’s efforts to open its charging technology to rival automakers have intensified competition among charger makers and operators. EVCS has enlisted the expertise of French bank BNP Paribas to assist in attracting potential investors, according to the document dated June 2023.
EVCS currently operates its own network of fast chargers and collaborates with well-known clients such as Hertz and Hilton. Their plan is to expand the network from the current 260 fast chargers to 2,100 by 2025, focusing primarily on the states of California, Washington, and Oregon.
The proposed $125 million investment is anticipated to secure a substantial minority stake in EVCS. However, details regarding the overall valuation of the company have not been disclosed by EVCS or its advisors.
Governments worldwide are offering various incentives such as grants and tax credits to support EV manufacturers and charging infrastructure developers, attracting private investments crucial to achieving EV adoption targets. The recent collaboration between Tesla and rival automakers has further facilitated charger operators to cater to a wide range of EV models.
While valuations of charging companies have experienced fluctuations over the past few years, recent federal funding has instilled hope among investors seeking environmentally friendly opportunities. This influx of capital is expected to benefit charging companies like EVCS, accelerating the growth of the EV charging infrastructure across the nation.
As EVCS and BNP Paribas decline to provide further comments at this time, industry observers eagerly await the outcome of this strategic partnership and the potential impact on the EV charging landscape in the United States.