EV Power Pulse Issue #24

Current EVents

EV Industry Updates

The IONNA EV charging network is beginning to take shape

IONNA, the joint venture founded by seven major automakers, has chosen Durham, North Carolina, as the location of its global headquarters. This decision offers IONNA access to local tech talent from Research Triangle and financial incentives, including a Job Development Investment Grant (JDIG) from the state, which could provide up to $3M in reimbursements over 12 years.

IONNA will also benefit from Research Triangle's surrounding universities, including Duke and NC State. The community will provide an ideal environment for the company to find top talent and collaborate with local research and academic institutions and the business community as it works to expand charging infrastructure across North America.

Last week, CEO Seth Cutler and Chief Product Officer Ricardo Stamatti spoke with John Voelcker about IONNA’s expansion efforts. They discussed IONNA’s ambition to provide a reliable, convenient, and differentiated charging experience as well as the challenges facing widespread EV adoption. These challenges include expectations the mass market has around convenient site locations, weather protection, lighting at night, and on-site staffing.

IONNA’s executive team envisions a charging network that integrates amenities such as retail options, restrooms, and covered charging areas, making the charging experience similar to what drivers expect from gas stations. 

IONNA is unique in how it’s currently being funded. The seven founding automakers have made what Cutler calls a “significant investment and commitment.” Unlike other charging networks, IONNA doesn’t need to raise venture funding because of the backing of its seven founding companies.

Also, despite saying they would use federal funds to build their network when they first launched in July 2023, IONNA isn’t reliant on NEVI funding. I imagine IONNA will eventually add other partners (automakers, utilities, and large retail), which will provide capital, resources, and talent to the consortium’s efforts.

IONNA is positioned to be one of the most important drivers of EV adoption and charging infrastructure growth over the next decade. The company is well-funded, they’ve recently added three experienced leaders to their executive team, and their first sites will launch by the end of 2024.

In the next year, I’ll be watching for IONNA to make additional announcements, add more key hires, and identify new partners. The real question will be whether IONNA can deliver on its goal of offering a reliable, convenient, and differentiated charging experience to both early EV adopters and new EV drivers with pre-established expectations around refueling.

–Steve

Getting started with EV charging can seem complicated, but it doesn’t need to be. Let Automotive Charging Solutions (ACS) help you navigate the world of EV charging with their free “Guide to EV Charging.” It covers everything from charger types, industry trends, financing options and more. Download yours today.

Power and Policy

Why have so few federally funded chargers been built?

The slow rollout of federally funded EV charging stations has sparked frustration and criticism. More than two years after the program's launch, only eight stations are operational across six states.

This sluggish progress is largely due to the complexities of permitting and state-level coordination, as each of the 50 states navigates its unique set of regulations and requirements for EV infrastructure development.

Transportation Secretary Pete Buttigieg recently defended the pace of deployment, attributing the slow build-out to the inherent complexities of establishing a nationwide charging network. He emphasized that while the federal government provides funding and overarching guidelines, the implementation falls to individual states. 

Data from EVAdoption shows only 23 states have awarded nearly 600 charging site contracts through the National Electric Vehicle Infrastructure (NEVI) program as of late May. The initial step of awarding contracts is critical, but the real challenge lies in the subsequent coordination to get these chargers operational. 

Permitting delays have been a significant bottleneck. According to InsideEVs, the process of obtaining the necessary permits to build and operate EV charging stations is often protracted and cumbersome. State and local governments, utility companies, and various stakeholders must coordinate to ensure that each site meets regulatory standards, which can lead to lengthy delays and increased costs.

Further complicating the rollout is the varying demand for EV chargers across different states. Rural areas, in particular, pose a challenge due to lower EV adoption rates, which makes it difficult for some to justify the investment in charging infrastructure. 

Despite these challenges, it's important to remember that slow progress does not mean failure. While only eight stations are currently online, nearly 600 are in the pipeline, thanks to the NEVI awards. As states finalize their EV programs and streamline permitting processes, the deployment of these chargers will accelerate. 

The path to a ubiquitous national EV charging network will continue to be challenging, from permitting delays to state-level disparities in EV demand. However, the groundwork is being laid, and the deployment of hundreds of new federally funded charging stations is imminent.

–Rob 

EV Charging Startup News

EV charging startups are still receiving significant funding

As the number of EVs on the road continues to rise, the demand for charging stations is growing, driving startups to meet this growing need. Since the beginning of 2023, early-stage companies focused on charging infrastructure and related technologies have raised billions in funding.

EV charging startups are closing significant investment rounds to build charging stations, operate charger networks, develop software, and facilitate green energy sourcing for EV owners. Data from Crunchbase shows that 65 private companies focused on EV charging have raised over $4.9B in equity funding in 2023 and 2024.

Among the top investment recipients is Paris-based Electra, which raised $330M in a Series B round in January, bringing its total funding to $550M for its bookable charging spots. Electrify America has also received substantial funding with a $450M investment in 2022. 

California-based FreeWire Technologies secured over $259M to continue advancing its energy management technology and charging network, and FLO recently received $136M in financing. 

Despite the enthusiasm for EVs and charging infrastructure, public market performance hasn’t been great for many venture-backed companies in this sector. Companies like EVGo, ChargePoint, and Wallbox, which went public during the SPAC and IPO boom from 2020 to 2022, are trading well below their peaks.

This stock performance decline may indicate a broader shift in investor sentiment and specific challenges within the charging business, such as technical issues and low usage rates at some stations. However, those issues should be minimized as EV adoption increases and infrastructure reliability improves. 

We expect to see more startups raising capital, partnering with larger players, and increased M&A over the next 24 months. Many of these startups will fail, but a few will establish themselves as major players in the charging infrastructure sector. 

–Steve and Rob

How to further connect with us

If you’d like to stay plugged into the latest EV news, you’re in the right place.

To be a part of the conversation and stay up to date with us, you can follow us on LinkedIn and Twitter.

If you want to get in touch with us to learn more about us, reach out here.

Until next time, stay charged!
- Steve and Rob