(Bloomberg) — Shares of EVgo Inc. surged the most in more than three years after the electric vehicle charging company received a conditional loan guarantee of up to $1.05 billion from the US Department of Energy to expand its network.

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The financing would allow the Los Angeles-based company to build out about 7,500 additional fast charging stalls across the US in states including Arizona, California, Florida, Georgia and Illinois, EVgo said in a statement Thursday.

The Biden administration has pushed to build a 500,000-strong national electric vehicle charging network by 2030. Getting low-cost financing for the build-out of charging infrastructure across the country is considered key to helping increase the adoption of EVs.

Incentives will also lower installation costs for operators as charging plugs are much more expensive in the US than in other regions, according to BloombergNEF.

EVgo shares rose as much as 64%, the biggest intraday jump since January 2021, to $6.44.

Earlier Thursday, JPMorgan upgraded the stock to overweight from neutral, saying firms like EVgo that own and operate their own charging infrastructure will outperform peers.

EVgo operates nearly 1,000 fast-charging stations across the US, and it recently partnered with General Motors Co. to install an additional 400 stalls.

(Updates share price in second paragraph, adds JPMorgan upgrade in sixth paragraph.)

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