The U.S. electric vehicle (EV) charging station infrastructure got a major boost today from President Joe Biden’s administration. As a result, EV charging station stocks like ChargePoint (NYSE:CHPT), EVgo (NASDAQ:EVGO), Blink Charging (NASDAQ:BLNK) and Wallbox (NYSE:WBX) are all seeing green today.
Indeed, the Biden administration rolled out a plan this week that allocates $5 billion to fund EV chargers over the next five years. The plan, called the National EV Infrastructure Formula Program, is a part of the $1 trillion bipartisan infrastructure package that was signed by President Biden last year.
The investment will help states build a network of EV chargers along “designated alternative fuel corridors on the national highway system.” Biden has said that the program to build EV charging stations could save the average driver $1,000 per year on gasoline expenses. Furthermore, individual states have until Aug. 1 to submit their charging station plans to the Joint Office of Energy and Transportation. All eligible plans will be approved by the Federal Highway Administration by Sept. 30.
Commenting on the plan, President Biden added:
“China has been leading the race up to now, but this is about to change. Because America is building convenient, reliable, equitable national public charging networks. So wherever you live, charging an electric vehicle will be quick and easy.”
EV Charging Station Stocks: What’s Next for The National EV Infrastructure Formula Program?
This investment is part of the administration’s plan to combat climate change with a transition to cleaner forms of energy. By 2030, the administration has pledged that half of the vehicles sold in the U.S. will be electric or plug-in hybrids.
Moreover, $7.5 billion was allocated by the administration toward building a network of charging stations as part of the $1 trillion bipartisan infrastructure package. Federal officials have stated that they will announce guidance on the remaining $2.5 billion later this year. However, the funding will include “discretionary grants for corridor and community EV charging.” Additionally, the Biden administration has pledged to replace its federal fleet of 600,000 vehicles with EVs by 2035.
No details were released by the administration on specific EV charging companies. This is because it is up to individual states to decide how they want to enact EV infrastructure. However, investors should receive a better picture once states start to submit their charging station plans.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.