The United States Department of Energy announced a conditional loan guarantee of up to $1.05 billion to EVgo (EVGO.O) on Thursday to expand its public electric vehicle charging infrastructure nationwide, including installations in underserved urban communities. ‘If finalized, the loan will support the deployment of approximately 7,500 high-power public charging stalls at nearly 1,100 stations, capable of charging two EVs at once.
Jigar Shah, head of the Loan Programs Office (LPO) at the Department of Energy, emphasized the significance of the financing, which will help EVgo, a company with high capital costs, compete more effectively with Tesla’s (TSLA.O) charging network. “The key is helping the company really achieve far higher customer service scores, [which] will mean that more people want to charge there, and it’ll mean that they’ll be able to pay back our loan faster,” Shah told Reuters.
This represents the first financial support for an EV charging company from the LPO’s innovative clean energy program, which still has around $70 billion in loan authority. ‘The EVgo stations, planned to be completed over the next five years, are intended to complement a federal initiative aiming to install chargers every 50 miles along highways. That federal program, however, has faced delays.
More than 40% of EVgo’s planned 350-kilowatt fast chargers are expected to be installed in disadvantaged communities, particularly benefiting drivers who don’t have access to private driveways or home charging.
“It’s a key aspect of our business, to provide access to clean air through transport electrification to those that don’t have charging at home,” EVgo CEO Badar Khan explained.
White House National Climate Advisor Ali Zaidi called the announcement “a meaningful mile-marker as the private sector sprints to build the infrastructure to meet consumer demand,” adding that the partnership would help “accelerate expansion from coast to coast.”
