Global automakers continue to ramp up production of electric vehicles (EVs). Billions of dollars continue to flow into EV research and development, yet EV charging infrastructure remains woefully lacking.
While the Biden Administration has set aside $7.5 billion in funding for a national network of 500,000 charging stations, further investment into the sector is key to accelerating consumer adoption of EVs. Fortunately, companies such as Royal Dutch Shell and BP have recently announced plans to expand their charging networks, with the potential for those stations to drive more profitability than gas sales. EV charging companies may continue to garner significant interest in 2022 as demand for EVs reaches record highs this year.
Related Stocks & ETF”: Global X Autonomous & Electric Vehicles ETF (DRIV), ChargePoint Holdings, Inc. (CHPT), Blink Charging Co. (BLNK), EVgo, Inc. (EVGO), Volta Inc. (VLTA)
Automakers Investing Heavily into EV Development, 2022 Sales Set to Shatter Records
The global electric vehicle (EV) transition continues to accelerate through the start of the new year, with automakers pledging billions of dollars toward furthering the production and development of EVs.
General Motors (GM) recently announced it will be investing $7 billion into its EV business to construct a new battery plant in Michigan as well as converting an existing assembly plant into a factory geared toward EV production, the largest single investment in GM’s 113-year history. GM has already set aside more than $30 billion to meet its stated goals of 30 electric vehicle offerings globally and 1 million in EV sales by 2025, notes The Detroit News.
Meanwhile, Ford (F) is also planning to accelerate their EV deployment, increasing their current EV investment by up to $20 billion, on top of the $30 billion the automaker has already committed through 2025, per Bloomberg.
Spending is only forecast to rise further as The Financial Post reports public subsidies for the construction of EV and battery plants are ‘ballooning around the country.’ According to a database complied by Good Jobs First, state governments approved roughly $2 billion in EV incentives last year, more than the previous six years combined.
International automakers are also looking towards the electric future, with the Renault-Nissan-Mitsubishi car-making alliance announcing plans to spend $25.7 billion on EV development over the next five years. Volkswagen has is also investing $58.2 billion into electric vehicles and related technologies over that same time frame.
That investment is expected to pay off in the coming years, as global sales of electric passenger vehicles are projected to surpass 10.5 million in 2022, about 4 million more than last year’s total, Axios notes. Key factors driving sales this year include a greater number of EV options in the market, stricter climate policies and the growth of commercial use electric delivery vans and trucks.
While greater investment is a major factor in driving further EV adoption, without a proper charging infrastructure the amount of EVs on the road will remain capped. Fortunately, EV charging companies are expected to garner significant investor interest this year, which could be the start of…
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