EV Charging Stations – Surge in Profitability
US EV Charging Stations: Increased Usage Signals Profitability
As the electric vehicle (EV) market in the United States continues to expand, the network of fast-charging stations is beginning to see significant increases in utilization rates, signaling a move towards profitability for this industry segment.
Notable Growth in Charger Utilization
Last year marked a significant shift for EV charging stations in the US, particularly those not operated by Tesla. According to data from Stable Auto Corp., a San Francisco startup that specializes in EV infrastructure, the average utilization of these stations nearly doubled. By December 2023, each fast-charging cord was in use for almost five hours a day.
"There's been a noticeable increase," said Brendan Jones, CEO of Blink Charging, which operates about 5,600 charging stations in the US.
The increase in utilization not only reflects the growing number of electric vehicles on the road but also marks a shift towards sustainable profitability. With the national average utilization rate now around 18%, many stations are reportedly achieving the critical threshold of 15% utilization needed to turn a profit.
"It’s a threshold that truly makes my spirits soar," remarked Cathy Zoi, former CEO of EVgo Inc., on an earnings call.
Charging Infrastructure Expands
Despite this progress, the challenge of maintaining a balance between availability and profitability remains. As utilization rates increase, the likelihood of congestion at charging stations also rises, leading to potential customer dissatisfaction.
"[When] you get to 30, you start worrying about whether you need another charger," added Jones from Blink, highlighting the operational challenges of high utilization rates.
For a more comprehensive look at the current state and future prospects of the EV charging industry in the US, click the button below to read the full article on Bloomberg.
