Hundreds of EV charging companies are all fighting over the best spots: Report

The competition is fierce: There are more than 900 EV charging companies around the world, and they all want prime locations for fast public chargers, according to a new report from Reuters.

As global bans on ICE vehicles loom over the horizon, the sector is attracting a ton of players and investors, drawing in more than $12 billion in venture capital funding since 2012, according to PitchBook.

“If you look at our customers, it’s like a land grabbing game now,” Tomi Ristimaki, CEO of Finnish EV charger manufacturer Kempower told Reuters. “Who gets the best locations now can guarantee electricity sales in the coming years.”

Tesla is the king in the US, but more fuel stations and convenience stores are setting up contracts with other companies, with the number of fast charging networks expected to double to 54 in 2030 from 25 in 2022, according to EVAdoption’s CEO Loren McDonald, who spoke to Reuters. Prime spots include places like Walmart, Circle K, and Pilot – GM and Pilot Flying J are putting EVgo chargers at Flying J rest stops throughout the US. Plus, the search is on for prime real estate to construct purpose-built “mega-facilities” with a few dozen fast-charge units with plenty of amenities on offer. 

Also, charging companies are clamoring to get exclusive contracts with companies like McDonald’s and Starbucks. France’s Iziva recently landed a deal to set up fast chargers at McDonald’s locations in France, and Instavolt, owned by EQT, has done the same with McDonald’s in the UK.

An EV charging station placed in a prime location can take about four years before it becomes profitable “once utilization hits around 15%,” Reuters says. Europe slows this process down due to bureaucratic red tape, but either way, it’s still viewed as an enticing bet for long-term infrastructure investments such as Infracapital (Norway’s Recharge owner), the report said.

While there are a ton of small startups in the game now, pitted against bigger players, consolidation is on its way. So we can expect to see a lot of name changes and logos in the coming years, according to the report.