The electric vehicle (EV) industry is largely dominated by Elon Musk's company Tesla (TSLA). Tesla has an estimated net worth of $931.51 billion as of August 2, 2022 and is considered the market leader in the U.S. for battery-powered electric vehicle sales.
Tesla has long had a stronghold on the EV market thanks in large part to Musk's outspoken presentations, although many other players have entered the ring since, including well-known brands like Ford (F) and newer businesses such as Polestar (PSNY).
It also built its own network of superchargers around the country to let its customers make long-distance trips more easily.
Now, thanks to a new announcement from the Biden administration, things are about to get a little easier for the rest of the EV industry.
A National Electric Vehicle Charging Network
In an official announcement on August 2, the Biden administration made a commitment to create a national network of 500,000 electric vehicle chargers by 2030. This will be instituted by the U.S. Departments of Transportation and Energy, with facilitation efforts from all 50 U.S. states, the District of Columbia, and Puerto Rico.
The Department of Transportation noted in April that "for drivers taking lengthier trips along the country’s Interstates and highways, fast charging is particularly critical, yet there are fewer than 4,800 non-Tesla DC fact charging stations nationally."
Secretary of Energy Jennifer M. Granholm said in a statement “our plans to build an interconnected national EV charging network [are] proof that America is prepared to act on President Biden’s call to modernize the national highway system and help Americans drive electric.” She predicted that the program "will boost local economies, strengthen our independence from the volatilities of fossil fuels, and ensure that electric vehicle charging deserts are a thing of the past.”
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In order to begin the plans for the national electric vehicle charging network, the first $5 billion will be spent from the Bipartisan Infrastructure Law formula funding (which will become available throughout the next five years).
Pete Buttigieg, the U.S. Transportation Secretary, stated, "We will continue to work closely with all fifty states, D.C. and Puerto Rico to ensure EV chargers across the country are convenient, affordable, reliable and accessible for all Americans.”
More Chargers Make EVs More Accessible
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While EV charger networks are certainly growing thanks to companies such as ChargePoint (CHPT) and EVGo (EVGO), they tend to be concentrated in big cities, making it impossible for owners in rural areas to ensure they can charge their car's battery when needed.
However, thanks to the announcement, that problem should continue to shrink over the next eight years, making EVs a more accessible option for those that do not live in large cities.
The announcement supports the climate change initiatives Biden announced on July 20, which include FEMA putting $2.3 million towards its Building Resilient Infrastructure and Communities program and the release of $385 million to the Low Income Home Energy Assistance Program to help families with household costs.
The administration also aims to expand offshore wind opportunities with a proposition for the first Wind Energy Areas to be established in the Gulf of Mexico. A 700,000 acre area, it could potentially power more than three million homes in the future.
