- Shell acquired Greenlots, a company that develops and manufactures EV charging stations, to make a deeper push into the future of EV infrastructure
- Although on a relative basis the number of gas stations far outweighs the EV charging sites, the current infrastructure in the US is sufficient for the current EV demand
- Shell’s entry into the space is validation for the future growth and potential opportunity in EV infrastructure
Shell (RDS) is buying Greenlots, a Los Angeles-based developer of electric vehicle charging and energy management technologies. The deal adds to a portfolio of electric charging assets.
Shell is thinking of the future where there is an uptick in the use of electric vehicles which need charging infrastructure. It seems that the government is thinking the same as states are already investing heavily in electric infrastructure themselves to promote the adoption of vehicles. California, New York, and New Jersey announced last June a total of $1.3 billion in new infrastructure projects focused on electric vehicle charging.
There are approximately 150,000 gas stations in the US, compared to roughly 20,000 EV charging sites. This discrepancy between the two is not as detached as it seems. Most EV owners will charge at home or at work most of the time. Charging stations are primarily needed long trips, but those will a minority of trips. One of the great things about electricity is that, unlike gasoline, it is already delivered into every home.
Additionally, the US has about 270M automobiles and slightly less than 1M EVs. Thus, having much fewer EV charging sites is sufficient for the current market. Presumably, EV station makers like Tesla (TSLA), and now Shell, will roll out additional stations as the industry grows.
Article by: Mick Ross
Mick is currently a full-time investor and formerly a buy-side analyst (2yrs) covering healthcare companies. Before that, he was a salesperson at a bulge-bracket firm, based in Dallas, Texas. Mick blogs to clarify and synthesize his investment thought process and to elicit feedback; additionally he likes to connect with other investors and swap ideas.