– Actively developing charging infrastructure to expand the electric vehicle market –
– The federal and state governments provide tax benefits and rebates related to charging station installation, and Korean companies need to conduct a preliminary investigation –
Following Tesla, which drew attention for its development of electric vehicles, global automakers are actively engaged in mass production of electric vehicles, and the explosive growth of the electric vehicle market is expected to continue over the next five to ten years. In the United States, the policy of expanding electric vehicles is recognized as a top priority related to the national interest of the United States. At the same time, electric vehicle charging infrastructure is emerging as the biggest issue and opportunity in the electric vehicle market as it is a field that will grow as fast as the spread of electric vehicles. The United States is preparing various policies with the supply of charging stations as a core task in addition to the policy to expand electric vehicles, so let's look at the opportunities that Korean companies should pay attention to.
Annual global passenger car (including electric vehicle) sales forecast by 2030
Charging stations emerged as a key task for the expansion of electric vehicles
President Biden signed an executive order requiring that half of all vehicles sold in the United States by 2030 be electric. But in reality, there is still a long way to go. Electric vehicles make up only 3.5% of new cars sold in the US today, and less than 1% of all cars on US roads. Experts point to insufficient charging infrastructure as a reason for the slow adoption of electric vehicles in the United States.
As of October 2021, according to statistics published by the U.S. Department of Energy's Alternative Fuel Data Center, there are a total of 4 public electric vehicle charging stations in the United States, and the International Council on Clean Transportation (ICCT) According to a recent analysis of , the number of chargers is about 4994. Charging stations are concentrated in metropolitan areas in the eastern and western parts of the United States, including California, Florida, Texas, New York, and Washington. President Biden has promised to install 21 additional charging stations for electric vehicles by 6000, and energy and automobile experts expect that the promise will be realized only by building at least five to ten times more charging stations.
Distribution of public charging stations in the US as of October 2021
Note: (Left) Level 2 charging, (Right) DC fast charging
US EV charging station market trends
(Market size and venture capital trends) The size of the US EV charging station market is still small. This is also because the electric vehicle market, which is closely related to charging stations, is not large and the cost-benefit ratio is very low compared to traditional gas stations. However, as the perception that the construction of charging stations is urgent for the expansion of electric vehicles to be realized is spreading, related investments are increasing and the scale is gradually increasing. The New York Times, citing a survey by Pitchbook, reported that venture capital firms will spend about $2020 billion in electric vehicle charging stations in 10 alone, more than all investments in charging stations combined over the past five years. . In 5, venture capital companies have invested more than $2021 million so far. According to research firm Dealogic, a Wall Street-listed Special Purpose Acquisition Company (SPAC) has closed 5 deals related to electric vehicles and related businesses, of which eight were to acquire charging companies.
(Charging method) Meanwhile, in the United States, the fact that there are not many DC fast charging stations that can charge an electric vehicle up to 30% within 80 minutes is acting as an obstacle to the growth of the electric vehicle market. Charging an electric vehicle can be divided into AC (alternating current, slow speed) charging and DC (direct current, high speed) charging. AC charging supplies power through an electric vehicle's on-board battery charger (a device that converts alternating current into direct current), but DC charging provides power directly to the battery without going through the vehicle's on-board battery charger, so the charging time is very fast. . Most electric vehicle owners in the United States charge their electric vehicles at home, but since the electric grid supplied to homes is an alternating current (AC) method that is advantageous for long-distance transmission, charging takes a very long time. Since the initial installation cost is high to expand the DC fast charger infrastructure, the industry is watching the size of the business budget allocated by the Biden government to the related infrastructure.
(Competitive Trends) The company that currently has the largest DC fast charging network in the US is Electrify America, owned by Volkswagen. Electrify America now has the technology to charge any vehicle. Against Electrify America, Charge Point is gaining market share as an online business model. Charge Point operates its business in the form of receiving a subscription fee through the software that manages the charger. Tesla is offering its own charging stations to boost sales of its electric vehicles. While most charging companies, including EVgo, operate their business by charging a fee based on the amount of electricity used during charging, Ample tried a model that replaces the battery itself instead of charging, and recently won 1 million in a Series C funding round. It also attracted investment in dollars.
Major U.S. electric vehicle charger related companies
U.S. federal tax incentives for electric vehicle charging stations
The federal government provides a tax credit of up to 30% (up to $3) of the installation cost to those who install commercial electric vehicle charging equipment (IRS Form 8911), and electric vehicle charging stations and installation fees for individuals who want to use residential electric vehicle charging equipment. Tax deduction of up to 30% (up to $1000) of The tax credit is effective until December 2021, 31. In accordance with the provisions of the Enhanced Buy American Act, all projects that receive federal financial support are obligated to use US-made products. must meet the accreditation requirements* of
Funded by the California Energy Commission as part of the California Electric Vehicle Infrastructure Project (CALeVIP), the rebates include: Rebates are offered on a first-come, first-served basis and applicants must reserve rebates prior to purchasing and installing EVSE. Detailed requirements, including eligible applicants and installation locations, can be found on the Northern California Incentives Project website.
Northern California Incentive Project
The Peninsula-Silicon Valley Project is also funded by the California Energy Commission as part of the California Electric Vehicle Infrastructure Project (CALeVIP) and offers the following rebates: Likewise, rebates are offered on a first-come, first-served basis and applicants must reserve rebates prior to purchasing and installing EVSE. Detailed requirements, including eligible applicants and installation locations, can be found on the Peninsula-Silicon Valley Incentive Project website.
The California Electric Vehicle Infrastructure Project continuously updates incentive projects, so you can check it from time to time. .
implication
Now, the golden age of electric vehicles is opening in the United States and around the world. Experts believe that it is the result of factors such as increasing consumers' environmental awareness about the growth of the electric vehicle market, electric vehicle models showing advanced technology are coming out one after another, and the government's subsidy support. However, most electric vehicle owners in the United States are still complaining about the lack of charging infrastructure.
As mentioned earlier, the Biden administration pledged to add 2050 electric vehicle charging stations in the United States by 2030 and convert all bus production to electric vehicles by 50, while declaring carbon neutrality by XNUMX along with the Green New Deal. Accordingly, the Biden government is planning to provide various tax benefits and incentives, and Korean companies considering entering the US need to be well aware of various incentive systems, such as tax benefits and rebates, especially related to charging infrastructure. In this regard, an official from company A, an electric vehicle manufacturer, said, “Consultations between the government and private companies such as OEMs and charger manufacturers are actively being conducted to establish charging infrastructure, and incentive projects vary slightly by region. ” he advised.
Source: Deloitte, IHS Markit, US Department of Energy, US National Tax Service, ICCT, New York Times, Pitchbook, CALeVIP, KOTRA Silicon Valley Trade Center