Toyota Announces First Communities to Receive DC Fast Chargers Through 'Empact' Vision

Rhea-AI Summary

Toyota Motor North America has announced the deployment of DC fast chargers in Baldwin Park and Sacramento, California, under its 'Empact' vision. This initiative aims to provide equitable EV charging solutions, particularly to underserved communities. The high-power 350kW chargers are part of a collaboration with EVgo, a leading public fast charging network, and will be operational by 2025. In addition, Toyota's Clean Assist program, which matches residential charging with renewable electricity to reduce emissions, generates revenue that has been reinvested into California's transportation electrification. The deployment locations were selected based on criteria such as resident income levels, demographics, air quality, and potential for EV adoption. The new chargers will be strategically placed in high-traffic areas to support local populations and promote EV use.

Positive

• Deployment of 350kW DC fast chargers in underserved communities in California.
• Partnership with EVgo, a major public fast charging network.
• Target operational date for chargers set for 2025.
• Toyota's Clean Assist program helps reduce emissions from residential charging.
• Revenue generated from Clean Assist reinvested in transportation electrification in California.
• Strategic location of chargers in high-traffic areas to support local EV drivers.
• Selection of deployment sites based on criteria ensuring equitable access.

Negative

• No immediate financial benefit for Toyota; chargers operational only by 2025.
• Potential high costs associated with installation and maintenance of fast chargers.
• scope of deployment, with only two initial locations.

Insights

Financial Analyst

The introduction of new 350kW DC fast charging stations in underserved communities like Baldwin Park and Sacramento may have significant implications for Toyota's future financial performance.

From a financial perspective, this initiative is part of Toyota's broader push into the electric vehicle (EV) market, which is anticipated to grow substantially in the coming years. By investing in infrastructure that supports EV adoption, Toyota is positioning itself to capture a larger share of this expanding market. This can generate substantial long-term revenue, especially as demand for EVs rises.

In the short term, however, the costs associated with deploying these chargers, such as infrastructure investment and partnerships with companies like EVgo, may impact Toyota's financials. Nevertheless, these initiatives can be offset by revenue from the Low Carbon Fuel Standard (LCFS) credits in California, which is being reinvested into transportation electrification.

For Toyota, this move signals a long-term strategic investment rather than an immediate financial benefit. Investors should consider the potential for sustained growth in the EV market and Toyota's proactive steps to support this transition.

Market Research Analyst

This initiative by Toyota and EVgo establishing DC fast chargers in underserved areas exemplifies a strategic effort to democratize EV access. It can significantly influence market dynamics by addressing one of the main barriers to EV adoption: charging infrastructure.

By placing high-power charging stations in high-traffic areas near amenities, Toyota is enhancing the convenience factor, which can drive higher EV adoption rates. This aligns well with California's push for environmental justice and equitable access.

Analyzing the locations chosen, both Baldwin Park and Sacramento are positioned for rapid EV growth. The use of the CalEnviroScreen tool to select these areas shows a data-driven approach that considers demographic factors, income levels and air quality—all critical for gaining public and governmental support. This can also positively impact Toyota's brand perception and loyalty among customers who value sustainability and social equity.

• Toyota's EV Charging Solutions collaborates with EVgo on deployment of 8-stall DC fast charging stations in California cities
• Toyota's support helps provide charging equity for underserved communities

PLANO, Texas, May 29, 2024 /PRNewswire/ -- Toyota Motor North America, Inc. (Toyota), guided by its "Empact" vision to address equitable EV charging and mobility for all, today announced the first communities that will receive DC fast chargers (DCFC): Baldwin Park, Calif., and Sacramento, Calif. High-power 350kW chargers at each location are to be installed, owned and operated by EVgo, one of the nation's largest public fast charging networks, and feature simultaneous charging. The California sites are targeted to be operational in 2025.

"Providing 'Mobility for All' is our north star as we look to support and facilitate equitable EV charging opportunities for all customers," said Christopher Yang, group vice president, Business Development, Toyota Motor North America. "We want to help ensure these underserved communities are not overlooked in the EV transition, and providing support for these charging facilities helps provide access to those who may not have easy access to home or public charging options."

Toyota's Clean Assist program, launched in 2021, matches residential customer charging with renewable electricity, thereby helping to reduce emissions generated from charging. In California this generates revenue from the Low Carbon Fuel Standard (LCFS), based on battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) charging at home. That revenue has been re-invested into transportation electrification in the state, including these chargers.  

"Expanding access to public charging infrastructure is critical to our mission of accelerating the mass adoption of EVs," said Dennis Kish, President of EVgo. "We are proud to partner with Toyota to build new fast charging resources that will support the equitable distribution of charging infrastructure in the Golden State."

The cities receiving DC fast chargers were chosen using the CalEnviroScreen tool and based on certain criteria such as resident income levels, demographics, air quality levels, and areas that have or are expected to have meaningful EV penetration. Baldwin Park and Sacramento are both great examples of areas that are poised to see rapid EV growth in the future. These two environmental justice communities would benefit from the addition of more DC fast charging stations in strategic locations to serve the local population and support EV drivers.

For example, in Sacramento, the new 350kW DC fast chargers will be installed near the Arden Fair Mall, a known high-traffic area close to the freeway with multiple options for dining, shopping and other activities.

"As a member of the California Air Resources Board and the Sacramento Air Quality Management District, I am extremely excited that Toyota and EVgo have selected Arden Fair Mall as the site for a new 8-stall electric vehicle charging station," Councilmember Eric Guerra said. "We'll continue to look for ways to reduce carbon emissions and I'm proud of the work our region is doing to meet our air quality goals."

The Baldwin Park charging station will also be centrally located less than a mile off Interstate 10, with access to amenities including a grocery store on site and many nearby restaurants.

"Investing in public charging not only supports EV drivers, it also benefits everyone in our community by encouraging zero emissions travel in an area that has experienced historically poor air quality," said Senator Susan Rubio. "This new fast charging station in Baldwin Park will bring economic and public health benefits that our residents and visitors alike can enjoy."

Toyota will look to continue supporting local communities through its Empact Vision, helping enable the transition to electrification for all, working to ensure that no one is left behind in the fight against carbon emissions. For more information on Toyota's electrified vehicle offerings, please visit www.Toyota.com/electrified. 

About Toyota
Toyota (NYSE:TM), creator of the Prius hybrid and the Mirai fuel cell vehicle, is committed to building vehicles for the way people live through our Toyota and Lexus brands, and directly employs more than 63,000 people in North America (more than 49,000 in the U.S.).

Over the past 65 years, Toyota has assembled nearly 47 million cars and trucks in North America at the company's 12 manufacturing plants. By 2025, the company's 13th plant in North Carolina will begin to manufacture automotive batteries for electrified vehicles.

Through our more than 1,800 North American dealerships (nearly 1,500 in the U.S.), Toyota sold more than 2.6 million cars and trucks (more than 2.2 million in the U.S.) in 2023, of which more than one quarter were electrified vehicles (full battery, hybrid, plug-in hybrid and fuel cell).

For more information about Toyota, visit www.ToyotaNewsroom.com.

About EVgo 
EVgo (Nasdaq: EVGO) is a leader in electric vehicle charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. EVgo is one of the nation's largest public fast charging networks, featuring over 1,000 fast charging locations across more than 35 states, including stations built through EVgo eXtend™, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network and unique service offerings for drivers and partners including EVgo Optima™, EVgo Inside™, EVgo Rewards™, and Autocharge+, EVgo enables a world-class charging experience where drivers live, work, travel and play.    

For Toyota customer inquiries, please call 800-331-4331. 

Toyota Media Contact: 
Toyota Motor North America
Josh Burns
Joshua.Burns@Toyota.com

EVgo Contacts:

For Investors:
investors@evgo.com   

For Media:
press@evgo.com 

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SOURCE Toyota Motor North America

FAQ

What is Toyota's 'Empact' vision?

Toyota's 'Empact' vision aims to address equitable EV charging and mobility for all, focusing on underserved communities.

Which cities in California will receive the DC fast chargers from Toyota?

Baldwin Park and Sacramento will receive the DC fast chargers.

When will the DC fast chargers become operational?

The DC fast chargers are targeted to be operational by 2025.

What is the power capacity of the new DC fast chargers?

The new DC fast chargers will have a power capacity of 350kW.

Who is Toyota partnering with for the deployment of these DC fast chargers?

Toyota is partnering with EVgo for the deployment of these DC fast chargers.

What is Toyota's Clean Assist program?

Toyota's Clean Assist program matches residential customer charging with renewable electricity to help reduce emissions.

How were the locations for the DC fast chargers selected?

The locations were selected using the CalEnviroScreen tool based on criteria such as resident income levels, demographics, air quality, and anticipated EV penetration.

Where will the new fast chargers be located in Sacramento?

In Sacramento, the new 350kW DC fast chargers will be installed near the Arden Fair Mall.

What are the amenities available near the Baldwin Park charging station?

The Baldwin Park charging station will be located less than a mile off Interstate 10, with access to amenities including a grocery store and various nearby restaurants.

How does the new charging infrastructure benefit local communities?

The new charging infrastructure supports EV drivers, encourages zero emissions travel, and brings economic and public health benefits to the residents and visitors.