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EV Charging Doesn't Make the Infrastructure Bill, but Not To Worry

EV Charging Doesn't Make the Infrastructure Bill, but Not To Worry

Last night, the Senate finally passed a bipartisan and badly needed bill to improve our nation's infrastructure.

One of the sacrifices of the deal was EV infrastructure and that's a piece I'm less concerned with than others given the recent market-driven events around the sector.

The momentum behind the energy transition is strong because many innovations that once didn't make financial sense, now do. Electric vehicles and the infrastructure needed to power them are no different.

As we've seen with Tesla's recent revenue numbers and the excitement behind the new F-150 Lightning, consumers want to buy these vehicles and preferences have shifted.

EV charging is the natural beneficiary. We're decades away from even the majority of new vehicles being EVs, but we'll see the growth as a result of what Nassim Nicholas Taleb calls "the minority rule".

It suffices for an intransigent minority –a certain type of intransigent minorities –to reach a minutely small level, say three or four percent of the total population, for the entire population to have to submit to their preferences.

Want to attract tenants to your apartment complex? You'll soon need EV charging or risk alienating 5-10% (and rapidly growing) of the market.

Building a new subdivision? You'll likely want to include an EV outlet in the garage because consumers will want it.

Are you a grocery store in an urban area? Increase revenues by providing EV charging for those that don't have easy access at home - they'll stay longer and shop with you because of your charging capabilities.

It would have been great to have a large investment into EV infrastructure, but even without it, we're going to see massive growth in the sector for decades to come due to market conditions. Ultimately, for the energy transition to continue its real momentum, that had to be the case anyway.