In 2025, the U.S. electric vehicle (EV) infrastructure sector will see a shift to privatization as the new Trump administration pulls government funding for EV charging networks established by the outgoing Biden Administration.
This will likely lead to small businesses taking a larger role in providing EV infrastructure as municipalities reduce spending on local stations. The good news for consumers is that they are more likely to have options when choosing EV charging services moving forward.
Privatization will also allow businesses to focus on placing EV chargers where they are needed the most, thus improving services provided to consumers, many experts believe.
“EV growth is not a blue or red issue, it is a consumer issue,” said Michael Battaglia, COO and CEO Elect at Blink Charging, a third-party charging provider. “Private industry is already the bulk of funding for EV charging infrastructure and moving forward it will continue to be.”
However, this does not mean privatizing EV charging will not face significant challenges in 2025 that could risk overall EV growth.
Why it matters
EV charging infrastructure has become the largest area of concern among consumers as range anxiety has become secondary. While both issues are tied together, building larger EV charging networks will negate the other and vice versa as fewer stations will likely lead to greater anxiety.
The move to privatize charging infrastructure will speed up the rollout of charging stations and encourage innovation through competition, according to Peter Chippendale, EV industry analyst at TechInsights. This approach of using private sector skills and resources could:
- Improve efficiency
- Enhance the experience
- Introduce new technologies
Additionally, public-private partnerships could amplify these benefits by combining government support with private sector flexibility, thereby reaching new infrastructure goals in the U.S., Chippendale said. This could help pay for projects that might not be profitable for private companies, but that are equally important to those in underserved markets.
“Right now, the EV charging network uses a mixed model where private companies like Tesla’s Supercharger network operate alongside government funding, incentives and guidance,” Chippendale said. “Privatization would shift the focus to private companies taking the lead in key areas.”
As the government’s role in funding and building charging stations declines, it will likely focus on regulation, setting standards and supporting underserved areas through subsidies. This will help the private sector by offering easier permits, clearer incentives and potentially speeding up development, Chippendale said.
“Privatization could encourage new business models like subscription plans, flexible pricing and systems that integrate renewable energy or vehicle-to-grid technology,” Chippendale said. “These innovations could improve efficiency and create more revenue opportunities for private companies.”
While privatization has the potential to speed up growth and inspire innovation, strong government oversight and smart policies would be crucial to ensure everyone has access and to meet national goals like sustainability and rural inclusion.
Challenges
While growth and innovation in EV charging will accelerate, strong government oversight will be needed due to the challenges of privatization.
Private companies prioritize profit. Growth could be solely focused on urban and suburban areas where demand is highest. This would obviously leave rural and low-income areas underserved. Competition and prioritizing profits could also make it harder to establish standards.
There is also a risk of monopolization and the lack of compatibility between different charging systems that could hinder progress toward a unified national network and high costs without government pricing controls.
“To address these problems, the government will need to step in,” Chippendale said. “Offering financial incentives like grants or subsidies can encourage companies to invest in rural and underserved areas, making sure there’s charging access everywhere. The government will also need to regulate the market to prevent monopolies, promote competition, and control prices. Additionally, requiring charging stations to be compatible across different networks will make the system easier for everyone to use.”
ChargePoint and General Motors are collaborating to install hundreds of fast-charging stalls in the U.S. at strategic locations. Deals like this are expected to flourish in 2025 as the U.S. government reduces investment in EV infrastructure. Source: ChargePoint
Previous investments
As part of the Biden Administration’s Bipartisan Infrastructure Law, the number of public EV chargers doubled to more than 192,000 with about 1,000 new chargers added weekly. The stalls were built to address charging gaps in urban, suburban, rural and tribal areas spurred by private investments.
Part of the Biden rollout was to:
- Build 500,000 EV charging stations
- Set aside $5 billion for states to build EV stalls
- Replace 657,000 government vehicles with EVs
- Subsidize private sector infrastructure
Given the Trump Administration plans to no longer support these endeavors, many of the proposed infrastructure deployments will likely no longer happen in favor of the private sector operations.
Private expansion
Along with the government construction prior to 2025, private industry was already expanding EV stalls nationwide. Some of these moves include:
- Starbucks building charging stations with ChargePoint at 15 locations from Denver to Seattle.
- 1,000 EV fast charging stations at Walgreens locations through Volta at 500 drug stores.
- Topgolf expanding its EV charging to more locations across the country.
- General Motors installing up to 40,000 chargers across the U.S. and Canada.
- Electrify America expanding to 10,000 individual chargers and 1,800 fast chargers in the U.S. and Canada.
- General Motors and ChargePoint are building EV chargers together nationwide.
- Rivian opening a new EV charging network for all vehicles.
- GM, EVgo expanding their EV charging network.
And these are just a handful of the many developments that have happened in the past four years. It is likely these types of deals and deployments will accelerate as private industry becomes more important in overall EV infrastructure growth.
