EV Charging Infrastructure: Capital Deployment in the Next Phase of Electrification
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While electric vehicle (EV) adoption continues to grow, the critical infrastructure required to support this transition has failed to keep pace. Broad vehicle electrification requires robust charging infrastructure buildout, giving rise to a variety of business models and creating a unique opportunity for entrepreneurs and investors alike.
In the U.S., 2025 marked the second-best year on record for EV sales. While market momentum has cooled in early 2026, with Q1 YoY growth slowing to 28%, the economic advantages of electric vehicles are becoming more apparent. Specifically, broader geopolitical instability and rising gas prices driven by the ongoing Iran conflict continue to underscore the financial benefits of EV adoption. However, the sector is navigating a more complex reality than recent headlines can capture. Major OEMs (including Ford, GM, and Volkswagen) have written down billions in EV-related investments and scaled back production targets in response to a federal legislative pullback, leading to compressed margins and slower-than-anticipated customer adoption.
Against this backdrop, charging infrastructure has not yet scaled to meet the demand of the existing EVs on the road today. EV infrastructure in the U.S. remains materially underbuilt, with approximately 200,000 public charge points. This disparity is most evident in the vehicle-to-charger ratio: China maintains approximately 10 EVs per public charger, and Europe sits at 13, while the U.S. lags behind with nearly 24 EVs per public charger.
The resulting vehicles-to-chargers gap represents both a bottleneck and a durable investment opportunity.
