President Biden's bipartisan infrastructure bill that was signed into law on Tuesday includes $7.5 billion for building out a network of charging stations to support the auto sector's move to electric vehicles (EVs), a move that was praised by one CEO in particular.
The infrastructure bill is “so impactful,” Michael Farkas, CEO of Blink Charging (BLNK), an EV services company, said on Yahoo Finance Live (video above). “It's going to allow us to put more charging stations in the ground. It will alleviate range anxiety that people feel, hey, can these electric cars go these distances, and will spark more buying, and then, again, additional investment in infrastructure.”
Farkas contended that while range anxiety is the greatest obstacle to mass EV adoption, “it's not a reality.”
“The fact of the matter is the average driver in the U.S. drives less than 40 miles a day,” Farkas explained. “We have EVs out there now with 200, 300, 400, and even 500 miles in range. It's very rare that someone sits in a car and goes 400 or 500 miles on a single charge.”
Plus, with the existing infrastructure, including Blink's charging stations, DC superchargers, and the Tesla (TSLA) network, “there's no reason today why one wouldn't buy an EV," he added. "It's just an anxiety that's not real."
Infrastructure spending to increase reach of electric vehicles
Around the country, there are plenty of EV charging stations already in operation, especially in major metropolitan areas — but not at the usual gas station markers.
Instead, many charging stations can be found in subterranean garages or in people's homes. That's why Blink and others have created apps to help drivers find a charge nearby.
Blink offers a wide range of charging stations, from ultra-fast highway stations that can charge a vehicle in 10-20 minutes to more residential ones that drivers can buy from Amazon (AMZN).
According to Farkas, what differentiates Blink Charging from other EV infrastructure companies is its vertical integration.
“We're seeing a lot of uptake on the residential side,” he said. “But where we're really seeing a tremendous amount of growth is in our commercial charging market, both those that we own ourselves and those that we sell to others.”
Farkas noted that the increasing ubiquity of charging stations can only help put prospective EV buyers at ease. And the additional government investment will allow charging station companies to expand the reach of their networks.
“Without a question, this will add a lot more charging stations in all areas, in areas that may have not been really impacted by EVs today,” he said. “This will allow those to invest money in those locations where we might not have without these government subsidies.”
Grace is an assistant editor for Yahoo Finance.