Cathie Wood's Ark Invest Expects Grid To Be Capable Of Handling Mass EV Adoption

Contrary to popular concerns, an analyst from Cathie Wood-led Ark Investment Management believes that the U.S. electricity grid can more than support widespread EV adoption.

What Happened: According to analyst Sam Korus, annual vehicle miles traveled on all U.S. roads is about 3.26 trillion or about 9 billion miles daily.

Assuming that an EV can travel about 4 miles per kWh, then the grid would have to provide 2.25 billion kWh per day to power all the nearly 285 million vehicles registered. If EVs are charged during non-peak hours, the grid can more than accommodate the entire U.S. vehicle fleet, Korus said.

If one is to assume that the estimates are wrong, even then, the vehicle fleet will take significant time to transition to EVs, providing sufficient time to upgrade the grid, Korus said.

Why It Matters: There have been significant concerns from different places that the grid will be overwhelmed if EV sales continue to rise. However, the U.S. government and auto companies are gearing forth with their electrification plans. The U.S. Environmental Protection Agency (EPA) sees EVs accounting for 67% of new light-duty vehicle sales and 46% of medium-duty vehicle sales by 2032. However, the country has not ascertained a date for ending the sale of combustion engines in its entirety.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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