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Former Obama economic adviser Robert Wolf and Solus Alternative Asset Management’s Dan Greenhaus discuss the Biden administration’s electric vehicle push despite low demand.
The surge in the adoption of electric vehicles (EVs) has brought an unexpected challenge to the forefront. Despite being the third-largest EV market in the nation, Los Angeles and its surrounding areas face a critical shortage of charging infrastructure. A recent study by real estate giant CBRE has dubbed this region a "charging desert," highlighting the growing disparity between EV ownership and accessible charging options.
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Electric vehicle at a charging station (Kurt "CyberGuy" Knutsson)
What is a ‘charging desert’ and how was it discovered?
With an advanced digital mapping tool, CBRE assessed EV charging needs nationwide to help its clients. The tool's purpose was to inform charging networks and property owners to locate and select the optimal locations to install new EV chargers.
This digital mapping tool combines data from approximately 80 sources, from mobile phones and housing type to EV ownership, to name a few. Comparing these sources gave CBRE valuable insights, such as whether most EV owners charge their vehicles at home or work.
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Electric vehicle at a charging station (Kurt "CyberGuy" Knutsson)
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LA's charging deserts: Key areas lacking sufficient EV infrastructure
The tool revealed that parts of L.A. have significant charging deserts, which are areas where there are not enough public, accessible fast-charging stations to meet the needs of the area. These areas include:
- Inglewood
- Long Beach
- Sherman Oaks
- Studio City
- Lomita
- Southwest Torrance
- Westwood (UCLA)
- Fullerton (Cal State Fullerton)
- Redondo Beach
Electric vehicle at a charging station (Kurt "CyberGuy" Knutsson)
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Why are there ‘charging deserts’?
A variety of factors lead to a "charging desert," including but not limited to a strong rental market in which most people do not have the ability to charge in their homes.
For example, Inglewood is made up of almost 70% of renters. And despite more than 1,000 registered EVs in the area and even more driving through daily, there are no public chargers in that area. Additionally, there are issues of inadequate power infrastructure, such as electrical substations for distributing additional power. Also, in densely populated urban areas like L.A., limited parking space makes it challenging to install charging stations.
However, Los Angeles is installing EV chargers on light poles to help meet the growing demand for electric vehicle charging infrastructure.
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Electric vehicle at a charging station (Kurt "CyberGuy" Knutsson)
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Challenges of EV charging infrastructure in the US
The electric vehicle (EV) market in the U.S. is witnessing significant growth, with over 1 million EVs sold last year, marking a record high. However, the share of electric vehicles in light-vehicle sales has seen a slight decline, dropping from 8.1% in Q4 2023 to 7% in Q1 2024, as reported by Cox Automotive. Despite this dip, research indicates a "second, significant wave" of potential EV buyers is anticipated in the latter half of the decade.
CBRE's recent analysis underscores the considerable gap that remains in the charging infrastructure necessary to facilitate this shift, emphasizing the urgency for enhanced investment and development in EV charging solutions.
Kurt’s key takeaways
Even though Los Angeles has nearly 588,000 EVs registered to make up 4.2% of the cars being driven, there are huge gaps in readily available EV charging options. Though the city of L.A. is working to help meet this demand by installing chargers on light poles, L.A. and the rest of the U.S. have a long way to go before having the infrastructure to support America’s shift from gasoline-powered vehicles.
Do you have an EV? If so, has charging been a challenge? Let us know by writing us at Cyberguy.com/Contact.
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