EVgo gets a $1.05B DOE loan for 7,500 DC fast chargers

EVgo (Nasdaq: EVGO) has received a conditional commitment for a $1.05 billion US Department of Energy loan to build around 7,500 DC fast chargers.

Access to this low-cost financing from the US DOE Loan Programs Office (LPO) would accelerate EVgo’s efforts to scale its charging footprint across the US. It’s anticipated the top state markets will be Arizona, California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Pennsylvania, and Texas.

If finalized, EVgo expects to begin the rollout of the new infrastructure in the second half of 2026 and complete deployment by 2030. (EVgo must satisfy certain technical, legal, environmental, and financial conditions before the DOE enters into definitive financing documents and funds the loan – this is standard LPO procedure.)

EVgo’s network expansion will create local, community EV charging stations with an emphasis on increased access and availability in areas that serve multifamily housing residents and others who rely primarily on public charging. This will complement the corridor charging that the National Electric Vehicle Infrastructure (NEVI) Formula Program is deploying.

In alignment with the Biden-Harris administration’s Justice40 initiative, over 40% of EVgo’s DC fast chargers will be built in marginalized areas that have been overburdened by environmental impacts.

EVgo will also leverage the 30C tax credit, which was expanded as part of the Inflation Reduction Act and supports the buildout of public EV charging infrastructure with a focus on driving investment to rural and lower-income communities.

“EVgo shares the Biden-Harris administration’s goal of increasing EV charging access in the communities that need it most,” said Badar Khan, CEO at EVgo. “This historic investment would meaningfully accelerate our network expansion to provide public charging to EV drivers across the United States.”

The Federal Financing Bank will provide the proposed financing directly as a loan, guaranteed by DOE, and structured as a limited recourse project financing. EVgo will not need to raise any third-party equity – public or private – to reach financial close and begin drawdown. The financing structure provides EVgo flexibility to continue scaling its network both within and outside of the project.

EVgo estimates that the project buildout will create more than 1,000 jobs, over 700 of which will be contracted roles in construction, engineering, development, and operations and maintenance.

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