EVgo gets $1 billion funding boost to expand public EV-charging infrastructure across the US

EVgo, one of the EV fast-charging network operators in the U.S., has just secured a significant funding boost to expand its EV-charging infrastructure nationwide. The U.S. government on Thursday announced a conditional loan guarantee of up to $1.05 billion to help EVgo grow its public electric vehicle charging network, focusing on underserved urban areas.

This support comes from the Department of Energy’s Loan Programs Office (LPO) and aims to back the installation of around 7,500 public charging stalls, capable of charging two EVs at once, across nearly 1,100 stations.

The funding is expected to help EVgo remain competitive with Tesla’s vast network of chargers. Jigar Shah, head of the LPO, stated that improving customer service will drive more EV owners to use EVgo’s stations, which in turn will help the company repay the loan sooner. Currently, EVgo operates more than 3,500 fast-charging stalls, though it’s still on the path to profitability.

“The key is helping the company really achieve far higher customer service scores, (which) will mean that more people want to charge there, and it’ll mean that they’ll be able to pay back our loan faster,” Shah said.

This loan is a first for an EV charger company from the LPO and is part of a broader clean energy program, which still holds about $70 billion in loan authority. EVgo’s expansion will complement a federal initiative, started in 2021, that aims to place chargers every 50 miles along highways, though that program has faced criticism for its slow rollout.

EVgo plans to place over 40% of its new high-power chargers in disadvantaged communities. These chargers are expected to serve both car-sharing services and individual drivers, particularly those without access to private driveways, Reuters reported.

According to EVgo CEO Badar Khan, this effort is part of the company’s commitment to providing cleaner transportation options to those without home charging solutions.

In an interview with Reuters, Khan said, “They’re ideally suited to those individuals who don’t have access to a private driveway. It’s a key aspect of our business, to provide access to clean air through transport electrification to those that don’t have charging at home.”

In January 2023, EVgo teamed up with Amazon to let EV drivers locate and pay for charging with Alexa and smooth the electric vehicle charging experience for owners.

Founded in 2010, EVgo is one of the largest EV fast-charging network operators in the United States. Its network has been powered by 100% renewable energy since 2019 through renewable energy certificates. EVgo owns and operates a charging network that features over 850 fast charging locations – currently serving over 60 metropolitan areas across more than 30 states and growing.