Shares of electric vehicle (EV) charging stocks, like Volta (NYSE:VLTA), Blink Charging (NASDAQ:BLNK), ChargePoint (NYSE:CHPT) and EVgo (NASDAQ:EVGO), are in focus following an update from the White House. Today, President Joe Biden will announce a $900 million funding program to build a network of EV charging stations across 35 states. Furthermore, the network will span 53,000 miles of the national highway system. The funding is part of the $1 trillion infrastructure package that was approved last November.
The $900 million of funding is part of a program that will see nearly $5 billion given to states for building an EV charging network. The funds will be granted over a period of five years.
Biden is leading the way towards electric transportation and is also set to speak at the Detroit Auto Show about EVs and EV charging. Let’s get into the details.
Why Are EV Charging Stocks Up Today?
At the show, Biden is set to announce that U.S. government purchases of EVs have increased significantly. In 2020, less than 1% of federal acquisitions were electric. That figure more than doubled in 2021. This year, new EV federal acquisitions have increased by five times when compared to 2021.
By 2027, the government must purchase nearly all EV or plug-in hybrid electric vehicles, as stipulated by an executive order Biden signed last December. By 2030, Biden seeks to have 50% of all new vehicles purchased to be powered by electricity or be a hybrid model. He also has a goal of installing 500,000 new EV charging stations by then. Currently, the government owns about 650,000 vehicles and purchases about 50,000 every year.
Last month, Biden awarded the U.S. Postal Service (USPS) $3 billion to buy EVS and manufacture charging infrastructure. In July, USPS announced that it would significantly increase its EV purchases, buying at least 25,000 EVs from Oshkosh (NYSE:OSK), up from the previous purchase plan of 10,019 EVs.
Since Biden took over as president, companies like Toyota (NYSE:TM) and Honda (NYSE:HMC) have committed nearly $85 billion to make EVs, EV charging stations and batteries. With the influx of funding for EVs, it only makes sense that further charging stations will be installed. As we move closer to a new era of electric transportation, EV charging stocks will certainly be worth keeping an eye on.
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.