Electric Vehicle Charging Story

As promising as electric vehicles (EVs) are in the fight against climate change, the EV industry remains mired in a conundrum. The problem is a chronic shortage of public charging stations in the US, particularly the kind that can power a car for long trips in a short period of time. This is largely a US problem, as there are many stretches along the interstate highway system that lack any public charging stations, thus state to state travel becomes increasing difficult, if not impossible in certain areas.

This problem is commonly referred to as  range anxiety , or the fear that the EV won’t have sufficient charge to complete its duty and is still perceived to be one of the greatest barriers preventing fleets from going electric. It continues to be the age-old chicken vs. egg story, where the private sector won't build charging stations because they can't turn a profit with not enough EV drivers, while non-EV drivers won't switch to EVs until there is an adequate charging network.

With improvements like larger battery packs, more-efficient EVs, and an increasing supply of EV charging infrastructure, the concerns on range anxiety have decreased in the last decade. But range anxiety concerns can be disproportionally felt by those in rural, underserved, and disadvantaged communities, and the federal government aims to address that.

This story will explore federal requirements to accessing EV funding, the supply of EV charging stations, the demand of EVs over the past decade, considerations for the electric grid, and what criteria should be looked at in determining where to place new EV charging stations.

The U.S. Departments of Transportation and Energy have made available $5 billion under the new National Electric Vehicle Infrastructure (NEVI) Formula Program established by President Biden’s Bipartisan Infrastructure Law (BIL), to build out a national electric vehicle charging network.

The program will provide nearly $5 billion over five years to help states create a network of EV charging stations along designated Alternative Fuel Corridors (AFCs), particularly along the Interstate Highway System.

AFCs were designated in 2015 by the US Department of Transportation under the Fixing America's Surface Transportation Act, and states nominated corridors in Rounds 1-8 between 2016-2024. Corridors were designated as EV Corridor Ready if they contained at least 4 public (non-Tesla) Direct Current Fast Charging (DCFC) stations that were 50 miles or less between charging sites and 5 miles or less off the highways. EV Pending Corridors were nominated corridors that currently do not satisfy the distance and station level/connector requirements.

Round 6-8 nominations criteria for EV Corridor Ready designations were similar to rounds 1-5, but reduced how far charging sites could be from highways from 5 miles to 1 mile, as most drivers wouldn't typically travel more than 1 mile off the beaten path. These corridors are primarily focused on interstate highways, but also contain some US and state highways.

The supply of EV charging stations is a crucial part to understanding the EV story. By locating where there are and where there aren't EV charging stations, governments are able to find opportunities on where to close gaps.

About 80% of current EV drivers charge their EV at home, with the rest charging either at work, public or government chargers, or at retail store chargers. With the vast majority of chargers stations being in urban areas, governments could focus their efforts in areas between cities and rural communities.

Public EV charging stations have been picking up in the last couple of decades, but have been outpaced by the number of registered EVs in the U.S. Although the supply of charging stations has risen drastically in recent years, so has the demand for EVs. See how the supply of EV charging stations stacks up in your area.

The current demand of EVs is on the rise and is outpacing the supply of EV charging stations, meaning there are more EVs than public charging stations in the U.S. Plug-in EV sales in December of 2023 rose to 9.8% of all light-duty vehicle sales, up from 7.8% in December of 2022. Sales share of plug-in vehicles in each month of 2023 was 8% or higher, while sales share in 2022 was between 5.5% and 7.8%. The highest monthly percentage of plug-in vehicle sales was 9.9% in September 2023. Plug-in electric vehicle sales were 9.1% of all light-duty vehicle sales in 2023, up from 6.8% in 2022 [ U.S. DOE ]

Looking at the ratio of EVs to charging stations can show if the current demand is being meet for an adequate supply of charging stations. Benchmarks set by the  International Energy Association (IEA)  suggests the minimum acceptable ratio of EVs to charging stations is about 10 EVs for every 1 charging station. A higher ratio means a higher level of unmet demand, while a lower ratio means a lower level of unmet demand.

One of the most common concerns for an EV future is whether or not the power grid can sustain the amount of electricity needed to charge these EVs. This problem is largely a supply and demand issue, as peak demand times for energy are largely the areas of concern.

It will be crucial for state and local governments to communicate with utility companies when building out EV charging stations in order to understand where certain areas will have power constraints.

That's the million dollar question, and using location intelligence through GIS is going to be crucial in deciding where might public charging stations be located.

The minimum qualifications for public charging stations through NEVI would be to choose EV Pending Corridors, and choose an area 50 miles or less away from the nearest charging site, that is within 1 mile of a highway exit.

At least 40% of investments should be within Justice40 Census Tracts to be in line with the Justice40 Initiative.

Public Private Partnerships (PPP) - Work with businesses where people would spend a lot of time waiting for a charge. These have the added benefits of safety for the EV driver, potentially a sufficient electrical grid, and businesses could gain more sales by EV drivers shopping longer/ visiting out of their way.

One type of PPP that might be suitable are Truck Stops - Truck stops are along highways where vehicles generally have traveled far, and often have ample parking, amenities such as restaurants, bathrooms and convivence stores. View a map of  truck stops and EV corridors .

Another potential PPP that might suitable are Grandfathered Eisenhower Rest Areas. These are rest areas that were existing prior to the 1950s Eisenhower area law that prohibited commercialization of rest areas on highways built with federal funding. View a map of  Grandfathered Eisenhower Rest Areas . Which businesses might be the most suitable for consumers to park and charge their EV? A consumer report graph shown below shows that grocery stores, restaurants, shopping malls, parks, and major warehouse clubs were the most convenient for potential EV customers. [ Source: Fuel Institute, Consumer Report ]

State governments have an allotted amount of dollars through 2026, focused on helping build out the national EV charging network and reduce driver's concern over range anxiety. By finding gaps in coverage, knowing where there is high traffic volume, knowing where rural, underserved, and disadvantaged communities are, and understanding that EV registrations have steadily increased year over year, governments should have a clearer target on where they might focus their federal funds.