While President Trump and the House Republicans attempt to pull the plug on President Biden’s EV charging funding, ChargePoint (CHPT) and industrial energy giant Eaton (ETN) are trying to keep the spark alive.
The two companies are cementing a partnership whereby Eaton will provide technology solutions “behind the meter,” as ChargePoint says, meaning grid updates, connections to utilities, and tech needed to install chargers, whether at homes, job sites, or retail locations.
ChargePoint stock was up 5% in early trading before paring gains.
ChargePoint CEO Rick Wilmer believes new build-outs are necessary, despite the new administration balking at spending on new chargers. Threats to funding led to charger installations across the US dropping by more than 21% in the first quarter, according to Energy Department data.
“Every building on the planet that has electricity now potentially can provide fuel,” Wilmer said in an interview with Yahoo Finance. “That isn’t the case with liquid fuel, so retail, especially, is now realizing that, ‘If I can provide fuel as a new benefit to people that come to my retail establishment, I can capture more of them now.'”
ChargePoint sells chargers and network infrastructure to residential or commercial property owners and offers servicing contracts if needed. Unlike other charging companies, ChargePoint does not own or operate its chargers.
Part of that service offering is all the behind-the-grid build-out.
Wilmer said about 80% of ChargePoint deployments require a grid upgrade, which can mean long lead times because grid upgrades require new equipment that sits “behind the meter.” In addition to adding high-voltage charging, there are loads to manage on buildings, like HVAC and lighting, and Wilmer said Eaton is the leader in providing solutions for building out an installation.
One of the exciting parts of this deal is the V2X capabilities, which will allow EVs, with their large batteries, to send power back to the grid if need be during peak energy times.
“The fact that you can move electric fuel out of a vehicle enables so much opportunity, and that’s one of the cornerstones that this partnership with Eaton is based on, now being able to take the energy and a bunch of vehicle batteries and move it back to the grid,” Wilmer said.
Think of a fleet operator with several EV delivery vans at a fulfillment center. When not in use, the vans can provide energy to the building, defraying energy costs. Wilmer also brought up the example of school buses for local municipalities, as these vehicles often sit unused for long periods, and their batteries can be utilized when parked.
It’s all exciting stuff for the energy and charging sector. But there’s still concern.
“It’s not helpful. Yeah, it’s not helpful,” Wilmer said when asked about pending House legislation that would cut charger funding.
Despite the shift in Washington, EV sales rose in Q1 by 11.4%, per KBB. That’s because the technology is better, Wilmer said.
“People are going to move to EVs just because they’re better, not because there’s a tax credit, not because there’s an incentive, not because they’re green conscious. They just want a better product,” he said.
“It’s basic market dynamics where, if I can have a better product and it’s the right product for my lifestyle, and it’s at a good price, I’m going to go with the better product. And I truly believe that is where we’re going.”
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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