The United States on Thursday offered EVgo a conditional loan guarantee of up to $1.05 billion for bolstering its electric vehicle (EV) infrastructure.
The loan, from the Department of Energy’s Loan Programs Office (LPO), is aimed at expanding the nation’s public EV charging network, including in marginalized urban communities, Reuters news report said.
If finalized, this loan guarantee will support EVgo’s plan to install around 7,500 power charging stations at nearly 1,100 locations across the U.S. over the next five years. These fast chargers, designed to charge two EVs simultaneously, will address the growing demand for reliable charging solutions, particularly in disadvantaged areas.
“This investment is key to improving customer service and will enable EVgo to compete more effectively with larger networks like Tesla’s,” said Jigar Shah, head of the LPO. Jigar Shah says that enhancing customer satisfaction would lead to more usage, enabling EVgo to repay the loan faster.
Tesla owns and operates 50,000+ Superchargers, the largest global, fast EV charging network, in the world.
This is the first time the LPO has offered financial assistance to an EV charging company, marking a significant milestone in the government’s push to build a nationwide charging network. The loan is part of the department’s innovative clean energy program, which has an additional $70 billion in loan authority.
EVgo’s chargers are expected to complement a 2021 federal initiative aimed at placing EV chargers every 50 miles on major highways. However, the federal program has faced criticism for slow implementation, making this partnership with EVgo a critical boost for nationwide infrastructure expansion.
More than 40 percent of the planned 350-kilowatt chargers will be built in disadvantaged communities, targeting individuals who lack access to private charging options. EVgo’s CEO, Badar Khan, highlighted that these locations are strategically chosen to serve car-share services and individual EV owners, particularly those without home charging capabilities.
Ali Zaidi, the White House national climate advisor, praised the initiative, stating, “This partnership will help accelerate the expansion of EV infrastructure from coast to coast, meeting consumer demand while advancing environmental goals.”
With over 3,500 fast-charging stalls already in operation, EVgo is poised to play a crucial role in transforming the nation’s EV charging landscape, helping to promote clean transportation and equal access to charging for all communities.