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Shares of EVgo Inc. soared up to 40%, marking the company’s largest intraday increase since November 2021. The surge comes as the electric vehicle (EV) charging company received a loan guarantee of up to $1.05 billion from the US Department of Energy. The funding is set to significantly boost EVgo’s charging infrastructure across multiple states in the US.
EVgo, based in Los Angeles, plans to use the financing to build around 7,500 additional fast-charging stalls nationwide. These expansions are targeted across key states, including Arizona, California, Florida, Georgia, and Illinois, as outlined in a statement released by the company on Thursday.
The move aligns with the Biden administration’s broader goal of establishing a national EV charging network, aiming for 500,000 chargers by 2030. Such low-cost financing plays a crucial role in the rapid build-out of charging infrastructure, which is expected to boost the adoption of electric vehicles across the country.
Incentives like these are also intended to lower installation costs for operators, as the costs of setting up charging plugs are considerably higher in the US than in other regions, according to BloombergNEF.
EVgo currently operates close to 1,000 fast-charging stations nationwide and has recently partnered with General Motors Co. to install an additional 400 stalls. This loan guarantee allows the company to significantly expand its reach and support the increasing demand for EV charging solutions.