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EV Charging Space on a Roll: Plug in With Confidence
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As electric vehicles (EVs) have been touted as the next big thing in the auto industry for many years now, automakers have started embracing the green future and are gradually ramping up investments in the same. While EVs still account for a small share of global vehicle sales, they are poised to lead the transportation space in the coming years amid climate change concerns, rising bans on ICEs (internal combustion engines) and the proliferation of advanced technologies.
Before electric cars take off in a big way, the rollout of public infrastructure is critical to quell the range anxiety for EV drivers. Thankfully, the development is taking place at a rapid pace.
Per the latest Global EV Outlook released by International Energy Agency (IEA), the number of publicly accessible charging points for green vehicles soared a whopping 60% year over year in 2019. This marks the biggest increase in three years.
Charging Infrastructure Zooms Past EV Sales Growth
Per IEA, the number of charging plugs was 862,118 on a worldwide basis in 2019. Fast chargers accounted for around 31% of the total, reflecting increased efforts to build the infrastructure ahead of the EV boom. DC fast chargers can charge around 80% of the EV battery within 15-30 minutes, depending on the vehicle. Conversely, slow charging provides power of up to 22 kilowatts, which takes hours to charge an EV’s battery using a standard 110 volt outlet. However, fast chargers can deliver 350 kilowatts of power, thereby drastically reducing charging durations.
The pace of development of new charging infrastructure is handily surpassing sales of EVs. Per IEA, 2.1-million EVs — accounting for just 1% of global car sales in 2019 — were sold last year, up 6% from the previous year. The growth has been rather tepid, partly owing to the weakening EV market in China since July 2019 due to policy reversals on government subsidies for new energy vehicles.
Overcome Range Anxiety Thanks to Next-Level Charging
EV buyers have been concerned about battery and availability of sufficient charging facility. There’s fear of running out of charge before either reaching the destination or a charging point. While EV makers are directing their efforts to improve the range of vehicles with advanced batteries, superior batteries and longer range are not enough to address people’s anxiety. Charging availability is often a sticking point. Widespread availability of charging facilities and deployment of proper charging infrastructure ensure a good driving experience for EV owners, and are essential for a sustainable development of EV future.
Most of the new EV charging spots are being developed in China, which is the world's biggest car market. China is at the forefront when it comes to the rollout of publicly accessible chargers, especially fast chargers. Around 60% of all chargers are located in China. The United States is on the third spot for most charging points, behind a combined category of "Other" countries. There are thousands of EV charging stations across the United States so that EV drivers can stay charged up anywhere they go. Notably, the United Kingdom’s EV charging points are twice the number of petrol stations. According to the latest data released by the Department for Transport, the United Kingdom boasts 18,000 EV charging points compared with just more than 8,000 gas stations.
Some countries like Germany are providing incentives to build new charging infrastructure. As part of its stimulus package, the nation has set aside €2.5 billion for the EV charging infrastructure to boost green vehicle adoption. The package aims at fostering the creation of EV charging stations in as many locales as possible. Every gas station in the country needs to install EV charging stations. Ramping up production and sales of EVs is central to France president Macron’s plan of making the country the leading producer of clean cars in Europe.
Companies Stepping Up EV Charging Efforts
Red-hot EV maker Tesla (TSLA - Free Report) is expanding the EV charging network for owners. The company’s extensive Supercharger network gives it an edge over competitors. Its Supercharger network has grown to 1,870 Supercharger stations with 16,585 individual Superchargers, per the company’s website. Tesla currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
German auto giant Volkswagen (VWAGY - Free Report) is investing $2 billion in the EV charging infrastructure in the United States over the next decade though its Electrify America subsidiary to boost the EV market.Electrify America is one of the largest open DC Fast Charging networks in the United States.
In collaboration with Electrify America, Ford’s (F - Free Report) FordPass Charging Network provides access to DC fast chargers. The FordPass Charging Network is North America's largest public charging network with more than 13,500 charging stations and 40,000 individual plugs.The U.S. auto biggie recently announced that owners of Mustang Mach-E will receive 250 kilowatt-hours of complimentary charging through FordPass Rewards at Electrify America fast-charging station.
Ionity — Europe’s leading, high-power charging network for EVs — targets to build 400 charging stations along major European highways, with an average of six charging points per station. It is owned by a consortium of Daimler , Volkswagen and BMW AG (BAMXF - Free Report) .
Leading charging service provider, ChargePoint Inc. has 113,400 charging spots around the world, with 78.9 million charges delivered (and counting).Investors in ChargePoint include Chevron (CVX - Free Report) , Daimler, BMW, Siemens and American Electric Power Co.
European oil giant Royal Dutch Shell plc has also been bolstering the EV charging business over the past couple of years. In 2017, Shell had clinched its first EV deal by acquiring NewMotion, which is one of the largest EV charging networks in Europe. It also partnered with Ionity to launch charging stations across Europe. As the company intends to shift focus on cleaner and renewable energy sources, it has been ramping up the EV charging business.
With the transition to electric vehicles gaining momentum, the trend could eat into global oil demand, and in turn hurt oil and gas providers. As such, big oil companies including BP, Shell and Chevron are becoming active in the EV charging space.
Numerous other charge point providers like Engie Group, EVgo, TGOOD and Blink Charging Company are cashing in on rising EV adoption and accelerating their efforts to expand business.
Final Thoughts
As citizens are getting deeply concerned about the growing climate crisis, EVs seem to be the best solution in hand. European nations such as France and U.K. have already specified future plans of completely banning diesel and gasoline car sales. China, the largest car market in the world, has also decided to totally switch to EVs at an unspecified date. The United States is also catching up with the EV revolution.
However, charging infrastructure and green vehicles have long faced the ‘chicken or egg problem’. Some believe EVs would not gain immense popularity until the convenience of charging is in place. Others are of the view that charging infrastructure would not gather momentum until electric cars gain traction.
Per IEA, EVs on the road will increase to 36%, with about 245 million battery-powered cars by 2030. The rapid rollout of hundreds of millions of public EV chargers across the world is likely to accelerate EV adoption by making the ownership experience more convenient. It will convince prospective EV buyers that there is no risk of them getting stranded on an empty battery. Range anxiety, viewed as an obstacle to the widespread adoption of green vehicles, might soon be a thing of the past.
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Image: Bigstock
EV Charging Space on a Roll: Plug in With Confidence
As electric vehicles (EVs) have been touted as the next big thing in the auto industry for many years now, automakers have started embracing the green future and are gradually ramping up investments in the same. While EVs still account for a small share of global vehicle sales, they are poised to lead the transportation space in the coming years amid climate change concerns, rising bans on ICEs (internal combustion engines) and the proliferation of advanced technologies.
Before electric cars take off in a big way, the rollout of public infrastructure is critical to quell the range anxiety for EV drivers. Thankfully, the development is taking place at a rapid pace.
Per the latest Global EV Outlook released by International Energy Agency (IEA), the number of publicly accessible charging points for green vehicles soared a whopping 60% year over year in 2019. This marks the biggest increase in three years.
Charging Infrastructure Zooms Past EV Sales Growth
Per IEA, the number of charging plugs was 862,118 on a worldwide basis in 2019. Fast chargers accounted for around 31% of the total, reflecting increased efforts to build the infrastructure ahead of the EV boom. DC fast chargers can charge around 80% of the EV battery within 15-30 minutes, depending on the vehicle. Conversely, slow charging provides power of up to 22 kilowatts, which takes hours to charge an EV’s battery using a standard 110 volt outlet. However, fast chargers can deliver 350 kilowatts of power, thereby drastically reducing charging durations.
The pace of development of new charging infrastructure is handily surpassing sales of EVs. Per IEA, 2.1-million EVs — accounting for just 1% of global car sales in 2019 — were sold last year, up 6% from the previous year. The growth has been rather tepid, partly owing to the weakening EV market in China since July 2019 due to policy reversals on government subsidies for new energy vehicles.
Overcome Range Anxiety Thanks to Next-Level Charging
EV buyers have been concerned about battery and availability of sufficient charging facility. There’s fear of running out of charge before either reaching the destination or a charging point. While EV makers are directing their efforts to improve the range of vehicles with advanced batteries, superior batteries and longer range are not enough to address people’s anxiety. Charging availability is often a sticking point. Widespread availability of charging facilities and deployment of proper charging infrastructure ensure a good driving experience for EV owners, and are essential for a sustainable development of EV future.
Most of the new EV charging spots are being developed in China, which is the world's biggest car market. China is at the forefront when it comes to the rollout of publicly accessible chargers, especially fast chargers. Around 60% of all chargers are located in China. The United States is on the third spot for most charging points, behind a combined category of "Other" countries. There are thousands of EV charging stations across the United States so that EV drivers can stay charged up anywhere they go. Notably, the United Kingdom’s EV charging points are twice the number of petrol stations. According to the latest data released by the Department for Transport, the United Kingdom boasts 18,000 EV charging points compared with just more than 8,000 gas stations.
Some countries like Germany are providing incentives to build new charging infrastructure. As part of its stimulus package, the nation has set aside €2.5 billion for the EV charging infrastructure to boost green vehicle adoption. The package aims at fostering the creation of EV charging stations in as many locales as possible. Every gas station in the country needs to install EV charging stations. Ramping up production and sales of EVs is central to France president Macron’s plan of making the country the leading producer of clean cars in Europe.
Companies Stepping Up EV Charging Efforts
Red-hot EV maker Tesla (TSLA - Free Report) is expanding the EV charging network for owners. The company’s extensive Supercharger network gives it an edge over competitors. Its Supercharger network has grown to 1,870 Supercharger stations with 16,585 individual Superchargers, per the company’s website. Tesla currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
German auto giant Volkswagen (VWAGY - Free Report) is investing $2 billion in the EV charging infrastructure in the United States over the next decade though its Electrify America subsidiary to boost the EV market.Electrify America is one of the largest open DC Fast Charging networks in the United States.
In collaboration with Electrify America, Ford’s (F - Free Report) FordPass Charging Network provides access to DC fast chargers. The FordPass Charging Network is North America's largest public charging network with more than 13,500 charging stations and 40,000 individual plugs.The U.S. auto biggie recently announced that owners of Mustang Mach-E will receive 250 kilowatt-hours of complimentary charging through FordPass Rewards at Electrify America fast-charging station.
Ionity — Europe’s leading, high-power charging network for EVs — targets to build 400 charging stations along major European highways, with an average of six charging points per station. It is owned by a consortium of Daimler , Volkswagen and BMW AG (BAMXF - Free Report) .
Leading charging service provider, ChargePoint Inc. has 113,400 charging spots around the world, with 78.9 million charges delivered (and counting).Investors in ChargePoint include Chevron (CVX - Free Report) , Daimler, BMW, Siemens and American Electric Power Co.
European oil giant Royal Dutch Shell plc has also been bolstering the EV charging business over the past couple of years. In 2017, Shell had clinched its first EV deal by acquiring NewMotion, which is one of the largest EV charging networks in Europe. It also partnered with Ionity to launch charging stations across Europe. As the company intends to shift focus on cleaner and renewable energy sources, it has been ramping up the EV charging business.
With the transition to electric vehicles gaining momentum, the trend could eat into global oil demand, and in turn hurt oil and gas providers. As such, big oil companies including BP, Shell and Chevron are becoming active in the EV charging space.
Numerous other charge point providers like Engie Group, EVgo, TGOOD and Blink Charging Company are cashing in on rising EV adoption and accelerating their efforts to expand business.
Final Thoughts
As citizens are getting deeply concerned about the growing climate crisis, EVs seem to be the best solution in hand. European nations such as France and U.K. have already specified future plans of completely banning diesel and gasoline car sales. China, the largest car market in the world, has also decided to totally switch to EVs at an unspecified date. The United States is also catching up with the EV revolution.
However, charging infrastructure and green vehicles have long faced the ‘chicken or egg problem’. Some believe EVs would not gain immense popularity until the convenience of charging is in place. Others are of the view that charging infrastructure would not gather momentum until electric cars gain traction.
Per IEA, EVs on the road will increase to 36%, with about 245 million battery-powered cars by 2030. The rapid rollout of hundreds of millions of public EV chargers across the world is likely to accelerate EV adoption by making the ownership experience more convenient. It will convince prospective EV buyers that there is no risk of them getting stranded on an empty battery. Range anxiety, viewed as an obstacle to the widespread adoption of green vehicles, might soon be a thing of the past.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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