EVgo, a fully-owned division of LS Power dedicated to the ownership and operation of public, high-speed charging stations for electric vehicles, has entered into an agreement to become a publicly listed company through a merger with Climate Change Crisis Real Impact I Acquisition Corporation, a special-purpose acquisition company.

Following the merger, the resulting company will trade on the stock market under the ticker symbol “EVGO” and will be valued at $2.6 billion. LS Power and the current EVgo management team, who collectively hold complete ownership of the company, will contribute their existing equity into this transaction. Upon completion of the deal, anticipated in the second quarter of the year, LS Power and EVgo will collectively maintain a 74% ownership position in the newly formed entity.

Through this business combination, EVgo has secured approximately $575 million in capital, including $400 million from a private investment in public equity, commonly known as a PIPE. This investment group includes Pacific Investment Management Company LLC (PIMCO), investment funds managed by BlackRock, Wellington Management, Neuberger Berman Funds, and Van Eck Associates Corporation, as stated in the official announcement.

The existing leadership team at EVgo will continue in their roles, with Cathy Zoi remaining as the Chief Executive Officer of the combined organization.

This agreement represents the latest instance of an electric vehicle-focused company joining the public market via a merger with a special-purpose acquisition company, as an alternative to the conventional initial public offering (IPO) process. Companies such as Arrival, Canoo, ChargePoint, Fisker, Lordstown Motors, Proterra, and The Lion Electric Company have either completed or announced intentions to pursue similar mergers with SPACs within the last eight months.

EVgo is an established player in the electric vehicle sector. Founded in 2010, the company has dedicated the past decade to expanding its charging infrastructure. Currently, EVgo operates charging stations in over 800 locations, serving 67 major metropolitan areas across 34 states. The company has forged strategic partnerships with retailers like Albertsons, Kroger, and Wawa to host its chargers at their locations.

EVgo has also established collaborative agreements with automotive manufacturers, including GM and Nissan, as well as ride-sharing services Lyft and Uber. In July, GM and EVgo jointly announced plans to deploy more than 2,700 additional fast chargers over the next five years.

Although electric vehicles currently represent a small percentage of the total vehicle population, industry forecasts predict a more than 100-fold increase in the EV market size between 2019 and 2040, according to EVgo. The capital obtained through this public market transaction will be utilized to expedite the company’s growth and expansion.

“Electric vehicles were once considered a specialized segment of the automotive market,” stated EVgo CEO Cathy Zoi. “Today, advancements in technology, reduced costs, a wider range of available models, and a growing understanding of the benefits of EVs are increasingly positioning them as the preferred vehicle choice. Consequently, the demand for rapid charging solutions is rapidly increasing.”

Ms. Zoi emphasized the importance of accessible public charging infrastructure to accommodate the needs of approximately 30% of Americans who lack access to home charging, as well as the increasing number of commercial and government fleets transitioning to electric vehicles.