Following the announcement of a $1.25 billion guaranteed credit facility from the U.S. Department of Energy, EVgo Inc. (EVGO, Financials) rose 10.8% in pre-market trade Friday, climbing to $6.89. Under the Title 17 Clean Energy Financing Program of the DOE, the money will help to triple EVgo's network footprint to at least 10,000 stations countrywide by 2029, supporting the implementation of around 7,500 high-power rapid charging stations.
With rates set at long-term U.S. Treasury benchmarks plus a 1.2% risk-based fee, the loan has a $1.05 billion principle and up to $193 million in capitalized interest. Subject to circumstances antecedent and a five-year deployment timeframe beginning in 2025, EVgo anticipates a first drawing of $75 million in January 2025. As collateral, the business has promised 1,554 current charging stations.
Over 1,000 U.S. jobs—more than 700 in operations, engineering, and construction—are projected to result from this growth. The initiative corresponds with rising EV acceptance in the United States, where Cox Automotive estimates that, in 2024, electric cars will make around 9% of new car sales. EVgo CEO Badar Khan underlined the project as a crucial public-private cooperation to increase activities and satisfy growing customer demand.
Starting in 2026, EVgo also intends to use next-generation charging infrastructure in order to increase energy economy and customer experience. The pre-market stock spike shows investor optimism about the long-term development possibilities connected with the DOE-backed expansion project.
