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Chinese state-owned energy firm State Grid Corp of China will be investing 2.7 billion yuan, or around $383 million, to establish a network of more than 78,000 charging piles across the nation. The company announced on Tuesday that the project is aimed to bolstering China's infrastructure to support the development of electric vehicles and other related sectors.

According to the energy company, the network of 78,000 charging stations will be distributed throughout 24 Chinese provinces and municipalities. This will include stations placed in Beijing, Tianjin, and as far as northwestern China's Qinghai province. The majority of the charging stations, around 53,000, will be placed in highly urbanized areas, while the rest will be placed in rural areas.

State Grid Corp spokesperson, Wang Yanfang, stated that the project should result in a boost in revenue and sales for electric car makers given that buyers will now have access to a much wider charging network. Wang added that the project should also foster the further development of EV technologies and products, benefiting companies throughout the supply chain.

Following the announcement of the project, share prices of energy-related companies rose on Tuesday. Companies such as Kunming Yunnei Power Co Ltd and Guodian Nanjing Automation Co Ltd reached the maximum 10 percent daily limit during the trading day.

State Grid Corp's project falls in line with the Chinese government's call for more investments to be made in the country's high-tech industry. The call includes further development in the nation's EV charging infrastructure, high-voltage grids, smart electric public transport, and 5G networking.

According to the National Development and Reform Commission, China is aiming to invest more than 10 billion yuan in the development of the country's charging piles alone. The government's goal is to have at least 200,000 new charging stations available to EV users within the year.

The Chinese Academy of Sciences had noted that the building more charging stations will provide EV users with more convenience for charging their vehicles. This will, in turn, get rid of some user's so-called range anxiety, one of the key factors that most consumers claim are preventing them from buying new energy vehicles.

Apart from providing convenient and within-reach charging solutions for EV customers, EV companies can also use the stations to gather important user data. The massive network can offer companies important battery information, user habits, and other data, which can be used for processes such as secondhand vehicle evaluation and tailor-made user services.

TagsChina State Grid, $383 Million, EV Charging Network Nationwide