Access to low-cost financing is expected to support construction of approximately 7,500 new DC fast charging stalls in community locations
LOS ANGELES, October 03, 2024--(BUSINESS WIRE)--EVgo Inc. (NASDAQ: EVGO) ("EVgo" or the "Company"), one of the nation’s largest public fast charging networks for electric vehicles (EVs), announced today that it has received a conditional commitment for a loan guarantee of up to $1.05 billion of debt financing, from the U.S. Department of Energy ("DOE") Loan Programs Office ("LPO") under its Title 17 program to accelerate expansion of its fast charging network in community locations across the U.S.
The financing would accelerate EVgo’s efforts to scale its charging footprint and increase nationwide access to convenient, reliable public charging stations. Access to this low-cost financing will facilitate the build out of approximately 7,500 additional fast charging stalls across the U.S., with the top state markets anticipated to be Arizona, California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Pennsylvania and Texas. If finalized, EVgo expects to complete the deployment of the new stalls by 2030.
The network expansion will complement the corridor charging being deployed through the National Electric Vehicle Infrastructure (NEVI) Formula Program by creating localized, community charging stations with an emphasis on increased access and availability in areas that serve multifamily housing residents and others who rely primarily on public charging for their needs.
In alignment with the Biden-Harris administration’s Justice40 initiative, over 40% of stalls to be built pursuant to the financing, if finalized, are anticipated to be in marginalized areas that have been overburdened by environmental impacts. EVgo also plans to leverage the 30C tax credit, which was expanded as part of the Inflation Reduction Act and supports the buildout of public EV charging infrastructure with a focus on driving investment to rural and lower-income communities.
"EVgo shares the Biden-Harris administration’s goal of increasing EV charging access in the communities that need it most," said Badar Khan, CEO at EVgo. "This historic investment would meaningfully accelerate our network expansion to provide public charging to EV drivers across the United States."
The proposed financing will be provided directly by the Federal Financing Bank as a loan, guaranteed by DOE, and structured as a limited recourse project financing. EVgo will not need to raise any third-party equity—public or private—to reach financial close and begin drawdown. The financing structure provides EVgo flexibility to continue scaling its network both within and outside of the Project, to meet growing demand and support the Biden-Harris administration’s goal of building a nationwide network of public chargers.
EVgo estimates that the project buildout will create more than 1,000 jobs, over 700 of which will be contracted resources engaged by the Company encompassing roles in construction, engineering, development, and operations and maintenance.
EVgo has a successful history of public-private partnerships and will continue to collaborate with utilities and state agencies to leverage incentives and funding programs that help to accelerate infrastructure deployment. Partnering with retail site hosts and property owners, EVgo has over a decade of experience in making EV charging more accessible and supporting the broader adoption of electric vehicles.
EVgo and DOE are committed to a superior customer experience for EV drivers and will collaborate on long-term solutions to maximize charging convenience and reliability to bolster consumer confidence and support broader EV adoption across the country. EVgo continues to invest in developing next-generation charging infrastructure that will enhance customer experience and expects to begin rolling out this new infrastructure in the second half of 2026. If finalized, the landmark partnership between EVgo and DOE will enable EVgo to build the fast charging network of the future and deliver a seamless charging experience for all EV drivers.
While this conditional commitment indicates DOE’s intent to finance the project, the Company must satisfy certain technical, legal, environmental, and financial conditions before the Department enters into definitive financing documents and funds the loan.
For more information about EVgo, visit www.evgo.com.
Transaction Advisors
Goldman Sachs acted as the financial advisor to EVgo.
About EVgo
EVgo (Nasdaq: EVGO) is a leader in electric vehicle charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. EVgo is one of the nation’s largest public fast charging networks, featuring over 1,000 fast charging locations across more than 35 states, including stations built through EVgo eXtend?, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network and unique service offerings for drivers and partners including EVgo Optima?, EVgo Inside?, EVgo Rewards?, and Autocharge+, EVgo enables a world-class charging experience where drivers live, work, travel and play.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target," "assume" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. You are cautioned, therefore, against relying on any of these forward-looking statements. These forward-looking statements include, but are not limited to, express or implied statements regarding EVgo’s future financial and operating performance, revenues, market size and opportunity, capital expenditures and offsets; EVgo’s expectation of market position and progress on its network buildout, customer experience, and technological capabilities and cost efficiencies. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of EVgo’s management and are not predictions of actual performance. Additional risks and uncertainties that could affect the Company’s financial results are included under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations of EVgo" in EVgo’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"), as well as its other SEC filings, copies of which are available on EVgo’s website at investors.evgo.com, and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to EVgo as of the date hereof, and EVgo does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.
