EVgo Closes $1.25 Billion Guaranteed Tax Payer Loan Facility from U.S. Department of Energy

LOS ANGELES--(BUSINESS WIRE)--EVgo Inc. (“EVgo” or the “Company”) today announced the closing of its $1.25 billion guaranteed loan facility from the U.S. Department of Energy (“DOE”) Loan Programs Office (“LPO”) under its Title 17 Clean Energy Financing Program to support EVgo’s forthcoming efforts to build convenient, reliable public charging infrastructure for electric vehicles (EVs) with the construction of 7,500 new fast charging stalls nationwide. This buildout will bring EVgo’s total owned and operated network to at least 10,000 fast charging stalls, allowing the Company to more than triple its network footprint by 2029.

“As one of the nation’s leading public fast charging providers, we are well-positioned to deploy the infrastructure needed to support both current and future domestic investments in transportation electrification,” said EVgo CEO, Badar Khan. “This public-private partnership will help us continue to scale our operations to serve the influx of vehicle options that will be available to American consumers in the coming years.”

Building high-power public charging at scale bolsters range confidence for Americans as they consider the choice to drive an EV. Expanding fast charging infrastructure not only contributes to job creation and local economic benefits, but it is also critical to protecting the investments made by the automotive industry, which is expected to release over 30 new affordable EV models by the end of 2025,¹ in addition to the more than 70 vehicle models already available to American consumers today.² EVs now account for roughly 9% of new vehicle sales³ and increasing consumer confidence in the availability of public charging is key to the success of these investments.

EVgo estimates this project buildout will create more than 1,000 jobs in the U.S., over 700 of which will be contracted resources engaged by the Company encompassing roles in construction, engineering, development, and operations and maintenance.

Terms of the $1.25 Billion Guaranteed Loan Facility

Total Guaranteed Loan Facility Amount	$1.25 billion • Principal: $1.05 billion • Capitalized interest: Up to $193 million
Interest Rate	Interest rates fixed from the date of each quarterly advance for the term of the loan at the applicable long-dated U.S. Treasury rate with an aggregate risk-based charge and liquidity margin of approximately 1.2%
Collateral	EVgo has contributed 1,594 charging stalls from its existing public network to the project as project collateral
Equity Contribution	Project cashflows are expected to provide the additional cash equity from EVgo over the course of the loan
Tenor	17 years from date of first drawdown
Deployment Period	5-year deployment period starting 2025, ramping annually to reach approximately 7,500 fast charging stalls
Principal & Interest Grace Period	Scheduled principal repayments do not begin until after end of deployment period Interest during the deployment period is capitalized, instead of being paid in cash
Loan Structure	Limited recourse project financing, secured by project assets
First Drawdown	Subject to satisfaction of all conditions precedent, the first drawdown of approximately $75 million is expected in January 2025
Additional Key Terms	Customary covenants and events of defaults for a limited recourse project finance loan facility Customary conditions precedent to advances for a limited recourse project finance loan facility

The closing of this DOE guaranteed loan facility follows receipt of a conditional commitment on October 3, 2024, and marks the conclusion of a thorough 18-month process.

Innovative Charging Solutions

Through the EVgo Innovation Lab, the Company is fostering American innovation to advance the broader transportation electrification ecosystem, including its extensive interoperability testing and ongoing technical collaboration with leading automakers and technology partners to support a superior customer experience for drivers.

This technical innovation extends to the joint development of next-generation charging architecture, for which EVgo will soon secure domestic intellectual property rights. This architecture will leverage EVgo’s learnings from serving over a million customers nationwide to provide EVgo with more control over the full customer experience, streamlining the charging process while driving energy efficiency and cost savings. The Company plans to deploy this new architecture beginning in the second half of 2026.

Transaction Advisors
Goldman Sachs acted as the financial advisor to EVgo.

About EVgo

EVgo is one of the nation’s leading public fast charging providers. With more than 1,000 fast charging stations across 40 states, EVgo strategically deploys localized and accessible charging infrastructure by partnering with leading businesses across the U.S., including retailers, grocery stores, restaurants, shopping centers, gas stations, rideshare operators, and autonomous vehicle companies. At its dedicated Innovation Lab, EVgo performs extensive interoperability testing and has ongoing technical collaborations with leading automakers and industry partners to advance the EV charging industry and deliver a seamless charging experience.

¹ Source: JD Power’s Future Vehicle Calendar (April 2024)
² Source: EV Volumes, 2024 US EV sales
³ https://www.coxautoinc.com/market-insights/q3-2024-ev-sales/