EVgo surges 41% after DOE approves $1.1 billion loan

(Bloomberg) — Shares of EVgo Inc. rose as much as 41%, their strongest intraday since November 2021, after the electric vehicle charging company received a loan guarantee of up to $1.05 billion from the U.S. Department of Energy had received.

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The funding would allow the Los Angeles-based company to build about 7,500 additional fast-charging stations across the U.S. in states including Arizona, California, Florida, Georgia and Illinois, EVgo said in a statement Thursday.

The Biden administration has set a goal of building a nationwide electric vehicle charging network with 500,000 participants by 2030. Low-cost financing to expand charging infrastructure across the country is seen as key to promoting the uptake of electric vehicles.

According to BloombergNEF, incentives will also reduce installation costs for operators, as charging plugs are much more expensive in the US than in other regions.

EVgo operates nearly 1,000 fast-charging stations in the U.S. and recently partnered with General Motors Co. to install an additional 400 charging stations.

(Updates trade and adds details from first paragraph.)

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