INSTALLATION of high-speed chargers across the US fell by more than 21% in the first quarter compared to the year-earlier period, according to an analysis of Energy Department data.
And with House Republicans proposing ending Inflation Reduction Act tax credits for buyers while the Trump administration rolls back auto emissions standards, it threatens to create a negative feedback loop of fewer charger installations and lower EV adoption. Such an outcome risks setting the sector back to trying to rev up EV sales with middling installation growth rather than rapid expansion that would give buyers the confidence they’d be able to find electrons.
“The uncertainty has automakers scaling back EV investments,” BloombergNEF analyst Ash Wang said in an email. She added that “if we continue in this direction, BNEF’s outlook for annual US charger installations in 2030 could be adjusted downward by 30% or more.”
The group has already reduced its cumulative estimate for US charging installations to 285,000 from 360,000 this year due to the threats to EVs.
The IRA, signed by former President Joe Biden in 2022, offers tax credits of up to $7,500 for EV buyers. Wood Mackenzie analyst Emil Koenig said his firm’s charging projections are based on the EV tax credit since it’s still in place, though WoodMac still lowered its charging outlook compared to last year.
Some Senate Republicans have indicated they’ll rewrite parts of the House proposal, so the tax credit may still survive. But its removal would “materially affect our forecast,” Koenig said.
The bipartisan infrastructure law also set aside $5 billion to build out charging infrastructure. But some states have suspended charging projects tied to that pot of money after the Trump administration paused implementation.
“President Biden’s ridiculous EV initiative promised much but delivered nothing, leaving American taxpayers to cover the cost of crony deals that enriched the Democrats’ base,” White House spokesman Harrison Fields said in response to questions about the slowdown in charging infrastructure. “President Trump was elected to dismantle the Green New Scam, and he is fully committed to doing so.”
A spokesman for Biden didn’t immediately respond to an email seeking comment.
The US currently has more than 208,000 public ports, according to the Energy Department. Additions are moving too slowly to meet EV demand, according to BNEF, with about 174,000 average installations required annually to keep up with its 2030 projection under a scenario that assumes no further energy policies are put in place globally. Halting government support for charging will deter investments in the sector, leading to plug scarcity and directly impacting EV ownership, according to an analysis by S&P Global.
Analysts are also closely watching how Trump’s tariffs will impact both EV sales and charging. About 35% of EVs sold in the US last year were imported, and vehicles assembled locally with parts sourced overseas may see prices jump due to tariffs. That will keep price-sensitive buyers away, according to WoodMac.
Tariffs could delay the rollout of EVs in the $25,000 range, said Koenig. “These low-cost vehicle models will be pivotal for broader EV adoption and charging infrastructure deployment, so any delay would also materially set back the adoption curve.” –BLOOMBERG
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