The Trump administration in the US has certainly been stirring up things in the automotive industry, in the US and globally. Recently the Trump administration announced a pause on $5 billion in charging infrastructure funding via the National Electric Vehicle Infrastructure (NEVI) grant program.
Within the US, EV infrastructure supply is nowhere near current demand with estimates that over 200,000 fast charging ports will be needed to meet projected US demand for EVs through 2030.
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Konect, a company offering a turnkey EV charging infrastructure ecosystem, believes that the rollout of EV charging infrastructure across the US is about future-proofing operations and making responsible, long-term investments.
We spoke to Om Shankar, vice president, general manager, Konect, to learn more about the NEVI funding and to touch on what more can be done within the US to improve EV charging infrastructure.
Just Auto (JA): What is the impact of the Trump administration pausing charging infrastructure funding via NEVI?
Om Shankar (OS): Even though the US administration has paused the National Electric Vehicle Infrastructure (NEVI), it does not affect projects with fully executed grant agreements. Several states are continuing their work to build out NEVI-funded EV chargers, but the move has undoubtedly led to market disruption and uncertainty.
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By GlobalDataWhile NEVI funding is important, it contributed to less than 1% of the total public chargers installed in 2024. This shows that NEVI is only a small piece of the puzzle, and broader efforts are necessary to meet demand. Other tax credits and incentive programmes from states and public utilities remain available.
But even before the NEVI suspension, the US was falling behind in its rollout of charging stations. EV sales in the US have grown rapidly, reaching 1.3 million units in 2024, yet the expansion of charging stations has not kept up. According to the BNEF, the US needs an average of 175,000 new chargers per year through 2030 to meet demand. In 2024, only 40,000 public charging installations were added. This gap is a critical issue, and it’s one that other regions like China and Europe have been addressing far more aggressively.
Looking ahead, we hope more NEVI-funded stations become operational in 2025, but they represent merely one aspect of the broader picture. At Konect, we can demonstrate how EV charging can be a profitable, self-sustaining model, even without government funding. It’s important to focus on the fact that the EV market is advancing, and the need remains strong.
Why is US EV infrastructure nowhere near current demand?
The US has vast distances between cities and rural areas, requiring a widespread and reliable charging network to support long-distance travel. While urban areas have seen decent charging deployment, rural areas and highway corridors often lack adequate coverage. Installing high-power charging stations requires significant electrical grid upgrades in many locations, which can be both expensive and time-consuming.
The cost of building charging infrastructure is also a perceived barrier, and return on investment can be slow, particularly in less populated areas. This has deterred some private investors from aggressively expanding charging networks. Our research, for example, shows that ROI remains the top concern for fuel retailers evaluating EV charging infrastructure.
Also, in many parts of the US, the cultural adoption of sustainability practices is still evolving. Unlike European countries, where environmental concerns drive much EV adoption, the US market is more diverse in its approach to sustainability. While sales for EVs in the US have grown significantly, the numbers still lag behind other markets which has contributed to slower infrastructure growth.
What more could/should be done to improve this?
While some markets continue to pour billions into EV consumer incentives, the US is on the brink of pulling back. For anyone who believes in the EV transition, the right choice is clear: breathe new life into an ambitious EV strategy and prioritise consumer incentives, ensuring more drivers can afford to make the switch.
While some markets continue to pour billions into EV consumer incentives, the US is on the brink of pulling back.
Well-targeted consumer incentives create a virtuous cycle of investment, adoption, and innovation. When people feel supported in making the switch, demand rises, encouraging automakers to produce more EVs. Increased adoption strengthens investor confidence in infrastructure expansion, allowing private companies to continue growing the charging network efficiently. This natural market response means that funds can be used where they have the greatest impact, helping drivers afford EVs.
Additionally, creating incentives for the second-hand EV market, such as tax credits for purchasing used EVs or reduced registration fees, would make EVs more accessible.
Do you see the future holding alternative fuel types such as hydrogen?
Yes, we see a multi-fuel future as being highly likely. The energy transition will not be solely dependent on electric vehicles. Instead, a combination of fuels, including compressed natural gas, hydrogen, and traditional fuels, will coexist, depending on the application and use case. This diversified energy mix allows for flexibility and resilience in the refuelling market.
A good example is a port authority striving to electrify operations but facing limitations in electric supply. As a result, they adopt a blend of electric and hydrogen fuels to meet their energy demands. This hybrid approach demonstrates how hydrogen can complement electric solutions in energy-intensive industries.
Companies like JCB are pioneering hydrogen-powered machinery, such as backhoe loaders, to overcome challenges in remote construction sites where electrical infrastructure is lacking. Hydrogen’s portability and high energy density make it a viable alternative to electric solutions in such scenarios.
A well-developed charging network will be an essential part of this multi-energy future, ensuring the infrastructure is in place to support the changing needs of drivers and businesses alike.
What do you see the next five years holding for EVs within the US?
While it’s impossible to predict the future with certainty, we believe the following strategic priorities will be crucial for the growth of EVs in the US:
- Stable policy to support decarbonisation: Consistent and long-term policies, such as tax incentives for EV purchases, emissions regulations, and infrastructure funding, are necessary to provide stability and confidence to manufacturers, investors, and consumers. The absence of a stable policy environment creates uncertainty, slowing down investment and adoption.
- Coordinated educational campaigns: There is a need for well-orchestrated educational campaigns to dispel myths about EVs, such as range or charging anxiety and charging inconvenience. These campaigns should target different demographics, including rural communities and older generations, to increase awareness and acceptance of EVs.
- Manufacturing confidence and domestic production: To reduce reliance on foreign supply chains and stimulate the local economy, the U.S. must continue to encourage domestic manufacturing of EVs and batteries. This can be achieved through incentives, grants, and partnerships between automakers and battery manufacturers.
- Consistent industry messaging: As suppliers to the EV industry, it is crucial to provide a calm and consistent voice to the market. Transparency and authenticity in messaging can help build trust among consumers, policymakers, and investors. This includes being realistic about the challenges and benefits of EV adoption and infrastructure development.
- Alternative fuels: We’ve seen OEMs recently announced their ongoing commitment to internal combustion engine vehicles, alongside its development of EVs and synthetic fuels. This decision has caught some on the back foot, and we may see others following suit. A well-developed charging network will be an essential part of this multi-energy future.
