EV Power Pulse Issue #7

Current EVents

EV Industry Updates

Charging Up Convenience Stores

Following a round of funding led by HSBC Asset Management and Chevron Technology Ventures, Electric Era, a startup founded by former SpaceX employees, is rolling out a promising EV charging solution specifically for convenience stores. Their "PowerNode" block is capable of handling the necessary load for EV charging even under the most delicate grid circumstances, ensuring a reliable charging experience.

The PowerNode incorporates its own management software and a built-in battery pack akin to those typically installed by homeowners. This unique feature allows for the charging of EVs at accelerated DC speeds without straining the power grid.

These charging stations offer an attractive alternative for convenience store owners looking to stay ahead of the electrification curve. Electric Era's solution benefits these convenient stories in two ways. First, they bring EV driver foot traffic to their stores, and second, they allow store owners to sell unused stored energy back to the utility providers. EV drivers will also benefit as the majority of other EV charging stations lack the basic amenities provided by convenience stores.

This past Wednesday, October 18, Electric Era launched its first public fast-charging station in Portland, Oregon. The startup is planning to deploy additional stations in southwest Oregon later this year. Further expansion across the US is also on the horizon, with over ten stations set to deploy at convenience stores across seven states.

As the automotive landscape continues its transformative shift, the Electric Era PowerNodes promise an EV charging future where convenience meets sustainability. As we’ve seen with EV charging proliferation at hotels and big box retailers, equipping existing business locations with EV chargers will be key to accelerating the development of our EV charging infrastructure.

–Steve

Power and Policy

NEVI Update: Kentucky Announces $10.9M in Funding

Kentucky Governor Andy Beshear announced the first round of National Electric Vehicle Infrastructure (NEVI) funding, totaling nearly $10.9M, marking a significant stride in expanding the state's EV ecosystem.

Six developers in Kentucky have received approval for funding under the NEVI program. This financial boost is set to support the design, construction, and operation of a network of 16 public EV charging stations. Francis Energy Charging and BP Pulse led the way with six sites and four sites, respectively. Interestingly, key industry players like Tesla were nowhere to be found on the list of awardees, and, as Steve mentioned in our previous issue, BP continues to expand its position in the EV charging space.

Governor Beshear emphasized that Kentucky's robust EV battery production landscape positions the state as a key player in the national EV market. The goal is not only to produce EVs but also to enable Kentuckians to reap the benefits of the burgeoning EV industry.

As developers commence the initial phases of the project, the NEVI funding is expected to play a pivotal role in propelling Kentucky into a prominent position within the EV industry. With a focus on establishing a robust charging network, Kentucky is poised to offer its residents and visitors the infrastructure needed to embrace the future of transportation.

–Rob

Consolidation in the EV Charging Industry

As incumbent automakers, energy companies, and startups jockey for market share in the increasingly crowded EV charging industry, Rob and I believe acquisitions will be one of the industry's driving forces of growth in the next 18-24 months.

We’ve previously discussed how the major oil and gas companies are finding their way into the EV charging space through both acquisition and investments. Early this year, for example, Shell acquired Volta Inc. for $169M, a valuation nearly 95% lower than Volta’s peak valuation in 2021. Volta was once a key player boasting one of the largest EV charging networks in the US.

Meanwhile, ChargePoint has roughly nine months of cash on hand, according to recent quarterly filings. The company has taken steps to shore up its finances, including a credit agreement and raising $232M via stock sales. However, to stay afloat, they need to continue cutting operating costs.

Blink Charging is also experiencing a rapid cash burn, spending $65M in the first half of the year, leaving it with only seven months of cash. Notably, Blink acquired SemaConnect in June 2022 to bolster their charging network, but still faces existential spending challenges.

The EV charging industry is at a crossroads. Low utilization rates, high operating costs, and financial constraints are hampering profits, while new competitors enter the market and legacy networks struggle to meet the needs of dissatisfied customers. This is a critical moment for the EV charging industry, and it remains to be seen which companies will survive.

We expect the consolidation of the existing EV charging networks will help improve the reliability and accessibility of US EV charging infrastructure. We anticipate seeing many more acquisitions and consolidation in the near future as a large number of networks struggle to sustain themselves against competitors with deeper pockets.

–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 ChargeCorps, you can follow us on LinkedIn and Twitter.

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

Until next time, stay charged!
- Steve and Rob