Great. Good morning, everybody. We're getting ready to kick off our next session. I'm Itay Michaeli, seasoned auto and mobility analyst and very pleased to have for the first time with us at the conference, Blink Charging as we get into the topic of EV charging today. Very pleased to have Brendan Jones, the President of the company. We also have the CFO and IR with us here as well. We'll do a different format than we've done thus far in the conference. We wanted to go through a presentation for those who might be newer to the company, and then we'll get into some questions as well. If you do have questions about the session, just raise your hand. We'll get the mic over to you.
We're looking forward to the session. Brendan, thanks again, for being here, and I'll turn it over to you.
All right. Well, thanks, everybody. I'm Brendan Jones. I'm the President of Blink Charging. I've been in the charging and EV on the vehicle side space for, God, it's getting a long time now, since 2008. Started with Nissan North America when they introduced the Leaf, have worked for several different EV infrastructure companies. I was the COO at Electrify America, I came to take over Blink Charging about 3 years ago today. A little bit about Blink is what the presentation's about. I'll pause for a minute so everybody can see the safe harbor statement. I will not read it, we have it in here just in case, if you need a copy, the presentation is available. About Blink.
We're a different type of charging company. When we look at it from an investor's perspective, we usually have to define who we are and differentiate ourselves from the other companies out there. We focus on a couple different business models. First is the host-owned model. That's where we sell charging services and equipment out to site hosts across the United States, in Europe, in South America, now moving into Apex region in Israel, in Greece and other regions throughout the country. That's basically a product sales with a little bit of recurring revenue off network services fees and maintenance contracts. We do Blink as a Service. What Blink as a Service is it to any site host in the United States a wrap package, where instead of financing up front, everything is covered in a monthly fee.
We get paid on a monthly basis, and after 5 years, the assets revert back to Blink, but the site host gets them in terms of their customers, et cetera. The hybrid model, and that's where we partner with different site hosts throughout the United States, and they pay for the installation, we pay for the charger and service, and we split the revenue on the kilowatt sales, 60/40 in Blink's favor. The Blink-owned. Blink-owned is where we analyze site hosts on a utilization basis across the United States and in Europe, see how high we can predict that utilization is gonna be on a kilowatt sales basis, and then we devote our capital to installing, owning, and operating those chargers.
Right now in the current environment, we're operating about on an 80/20 split on product sales model versus the owner/operator model. We're constantly seeing an increase in the revenue from utilization on the owner/operator model as we move forward. We're looking at where we're at, I said globally, you saw that global networks. We're in 6 language, 19 currencies, and 25 countries. That's a massive expansion from where the company was 3 years ago. We've really expanded and taken advantage of the growth in the industry. When I started, we had less than 40 employees. We're up to 625 today. We continue to expand into new countries and new environments. Little bit about the team.
I'll just point out that the team is a seasoned staff, having had some experience working at other EV infrastructure companies and other OEMs, VW and Nissan North America. You know, we really got a talented staff here on it. It's a diverse staff. The staff spans the United States and Europe and Israel with a variety of experiences. Even staff that formerly worked for some of our competitors as their founder and operator, such as Harjinder, our CTO. We'd like to say we have one of the most experienced and dedicated staffs in the industry today, and this staff and team is one that's fueled our growth. Now about the industry. This is why we are very optimistic about what is going on out there today.
If we look at forecasted global passenger to the EV fleet, so we're talking, you know, 100 million is what we're talking about as we roll all the way up to 2040. That's an awful lot of vehicles on a TIV basis when you look at it. Now, when you look at other states that are now California, New York, Massachusetts, others to come, then many of the countries in Europe banning internal combustion engines. You know, we look at it, and we always see when some of these milestones are put out there, and we have this sort of thing, okay, well, yeah, that's gonna come out there. Things will change. Well, you know, they said EVs wouldn't catch on in 2010, and they said it again and again and again.
Now in California, EV penetration is hitting 20%, in just vehicles sold on a monthly basis in California. We're seeing European countries getting up to 50%. Now we're seeing shifts in other states. This goal is gonna happen sooner than we think. Certain European countries, 2030, no internal combustions, all EV sales. This trend is happening. It's gonna continue to happen. Despite government intervention to help, it's gonna continue to go forward. When you cross-supply, what does it mean for chargers? Well, you can see $490 million chargers are needed between now and 2040. $490 million. That's the opportunity that we're gonna pursue and continue to pursue. The market is big, and the market is growing, and we're just showing right here global passenger side.
We're not showing any of the other opportunities that are coming the charging way. The market's gonna expand and the type of charging is gonna expand. Here's some things on Blink chargers. About 3 years ago, we had two products. These are all the products that we have today. The company has grown dramatically. The interesting thing about a multiplicity of these chargers are now going to be exclusively manufactured by Blink in Blink's manufacturing facility in the U.S. and India and other locations across the globe. We've shifted the company to be able to build these new designs and these new products, and we continue to innovate as we move forward. One of the interesting things, I'll point out the 50-kilowatt wall box on the end. When I started in the industry, a 50-kilowatt charger was $60,000.
That's how much it cost. I'm not gonna tell you what we can pay for that. I will tell you, we can retail it between $10 and $14, depending on the country we're selling it in. That's a dramatic shift. It is one-fourth the weight. I can pick that up and hang it on a wall. Innovation is happening in the space. They're getting lighter, faster, better, and easier to maintain. We're gonna take advantage of that efficiency curve. When we were in Vegas at CES earlier this year, we unveiled some attractive designs. One of the innovative products is a wall-mounted 30-kilowatt charger. This is very small, primarily for dealers, and other areas that need a little bit of a faster charge than an AC charge. They can hang a DC on the wall.
Cheap, easy to install, easy to maintain charging. The other one was a point-of-sale one. This is an advertising charger. This is a brand-new unit that we'll have ready for sale soon. This allows you to create revenue, sustainable revenue on the charger, both from advertising sales and from kilowatt sales combined together on that. A lot of site hosts are interested in that product. Newly launched 100-kilowatt DC fast charging. This is our final design on this. This is going into production and final design this year. Innovative, again. We hit the Indian market, which is uniquely different than our market. In the Indian market, you're gonna see a dominance of 2 and 3-wheel EVs that are now hitting the market there.
We put a charger out in the market to be able to serve those at an inexpensive price. It is easier for Blink because we have two well-established facilities in Bangalore and another one outside of Delhi that can market and sell this charger easily. We manufacture it out of our facility outside of Bangalore. In Europe, we're using a brand-new EQ 200 charger that's built for us on contract manufacturing out of Poland. That one is a universal charger. What this allow us to do is suit a variety of site host needs throughout the European continent. For the Some have higher technology on it, such as full service on mobile application, connected to the network, et cetera, all the way down to very low maintenance, simple charger that can be installed.
We are already sold out of that model in Europe right now, and we're looking to increase production on that. The other thing for the European continent was our PQ 150, and that's just an international smart cable. That's a drop-in-the-trunk charger that can go and can plug in. As many of you know, in Europe, it's a little different. They already have 240 as the standard. In U.S., we have 110 as the standard, and you have to upgrade to 240. That allows them to plug in anywhere there's a plug throughout the continent. If we look at our history, our history is of a very inquisitive company dating all the way back to its origins.
It is you know, a combination of a multiplicity of companies, but we'll focus, you know, really on where we've been, you know, the last couple years. We started in 2020, and we acquired BlueLA. And also in 2020, we acquired U-Go, a small DC fast charging company. We did Blue Corner in Belgium. And then we moved on to do the big acquisition of SemaConnect in the United States, and then another asset in England, which is called Electric Blue. We have a little bit of a fascination there for the name Blue. Don't hold that against us. We bought three Blue companies, and it just happened by happenstance.
When you look at us now as a combined company, you know, in the United States, we're either ranked, third, in terms of size and chargers deployed, and in the world, we're right up there in the top rankings in terms of size as well. One of the big tasks that we have with this is how do we bring it all together? Right now, the company has been on, for the last 6 months, a massive synergy exercise to bring all of our entities under one network, one system, one back office, one sales force e-entity as well.
We're happy to tell all analysts that we'll be completed with that exercise in the summer this year, and we'll have big announcements as we're moving forward, what those synergies with those companies have netted us out as we continue to grow revenue and then cut expenses simultaneously. These are just a couple pictures of some of the manufacturing and warehousing. The bottom picture there shows chargers that are being bench-tested for quality out of our Phoenix facility, and then we have some other chargers here that are out of the Bowie facility as well. One of the unique things to think about with Blink in our total models is we don't throw anything out.
On the owner-operator model, if we have a charger out in the field, we roll a truck, we pop the charger off, we pop a new one on, and we just send it back to one of our facilities. It's refurbished, checked, and then it goes back in circulation on the owner-operator model. It's efficient. We don't spend $ servicing chargers in the field on the L2 model. We just pop them, replace it, recycle, get it back out there. It's a very efficient model and proving very cost-effective as we move forward. For the commitment to manufacturing, we have two different facilities in the U.S. We have one that primarily imports and bench tests chargers, and we have one that actually manufactures the charger. In the Bowie, Maryland facility, it's all manufacturing.
It basically takes parts that are produced out of our Indian facility, manufactures as chargers in the United States with U.S. labor, and those chargers are then compliant for Buy America regulations that are coming out of the NEVI program and other state and municipal programs that are requiring the Buy America element. We're also moving to build a DC fast charger facility in the U.S. It'll produce, at a minimum, about 10,000 DC fast chargers. All of those will be NEVI compliant. As some of you might know, they just came out with the rules regarding the $7.5 billion that the Biden administration has put out there.
One of those rules is that right now you have to have all of the steel in the outer casing of the charger and in the internal elements of the charger has to be U.S. made from raw ore. Then in 2024 July, 55% of the overall charger needs to be in the United States to get that funding and to qualify. Blink is well on its way to meeting those deadlines, and we'll be able to participate in the NEVI funding and we'll pursue it aggressively as we move forward. Last slide here, this slide kinda looks at the competition and sees how we match up because we're different, because we're fully vertically integrated, because Blink Charging is out there, it sells chargers, it own and operates chargers, it manufactures chargers, it networks chargers, it maintains chargers.
We're distinct in the industry. You look across these buttons. In-house design, we have it. Manufacturing, we have it. Network, own and operate, we've got. Manage infrastructure, we've got. Charging services, we've got. Fully integrated fleet solution all across the board. This is an honest census of all of our competitors. We really stand out in the industry. The great thing is we're gonna take advantage of today's sales revenue while simultaneously banking on sustainable revenue for the future on the owner/operator model and the sale of kilowatts. If we look at what the data tells us today, we have data coming in from McKinsey, we have data coming in from Bloomberg and other sources. It is estimated that 90% of all kilowatts dispensed are gonna come through L2 chargers.
Why that's important in an investment perspective is the cost of capital to put those chargers in the ground and the amount of capital needed is drastically reduced for DC fast charging. While we're gonna do DC fast charging, we'll take all the grant money that they wanna give us to install them, we're also banking on the L2 model's gonna dominate globally at 90% of all kilowatts dispensed, and we're gonna get our lion's share of those kilowatts on the owner/operator model, and we're doing great on the product sales as well. With that's the conclusion of the presentation. We'll sit down, and hit me with a bunch of questions.
Awesome. Terrific. Thank you so much, Brendan Jones. A great presentation, great overview. If you have questions, we'll hand a mic over to you. You know, maybe I'll just kick off with where you just ended on the Level 2 90% share. Some other companies I think are sort of moving much more towards DC and kinda ultra-fast charge. Let me talk a little bit more about your kind of... some of the third-party work that's been done that supports the L2 view.
Yeah. I mean, first, we believe in DC fast charging, and we're going to participate in it. Through my background and our team's background, we've done a lot of DC fast charging in the past. Probably somewhere over 3,000 installations in total of DC fast charging. We understand it, and we understand the economics of it, and we'll do it. It's clear from the data that you're gonna generate a lot more revenue from a lot more chargers if you have a large portfolio of L2 charging. You have to dominate, where those models are. L2 takes advantage of everything an hour plus, right? You can do it. There's a lot of instances where you can do it under an hour.
Doctor's offices, grocery stores, anywhere where dwell time is high. If you cross-apply that on the statistic of on passenger cars, which we're primarily focused on, in this presentation here, they sit for 95% of the time according to DOT. I recently had a meeting with DOT, the White House transition office that's handling all of the NEVI dollars, and they said that's the biggest stat in the world. 95% these vehicles sit. When you look at this capital needed for L2 versus this capital needed for DC fast chargers, anywhere from 15 to 1 is the ratio, depending on the type of DC charger that's been installed. We need to exploit L2. That is the economic way for this country to get more chargers out there for more people to plug in.
Still doing DC fast charger because DC fast charging has two-phased effect, right? One is the psychological impact of building range confidence. You see a charger, you believe, "Okay, I'm gonna buy an EV 'cause I saw these charging stations." It has the practical application of where drivers really charge. When we look at the charging data, you're finding home, workplace, multifamily dwelling garage, city garage much higher than DC fast charging.
Got it. Absolutely. You mentioned NEVI. I do wanna talk about the IRA and NEVI and just maybe an overview for those who are newer. A lot of developments there lately about how you expect that to all benefit Blink.
Which one was that?
The Inflation Reduction Act and NEVI.
Yeah. If you look at the Inflation Reduction Act, the good thing is it's gonna increase vehicle sales, right? What we look at is this perfect storm of these two combined pieces of legislation that have been out and are now putting into action. You've got the $7.5 billion under the Infrastructure Bill, and then you've got the Inflation Reduction Act simultaneously. What the good news about the Inflation Reduction Act, they've just made some adjustments, added more cars that didn't previously qualify in it, which was great news from Tesla and some other providers. The overall news for the industries is that is going to again increase vehicle adoption, make EVs more affordable. What you think about, and it's putting my OEM hat back on a little bit and thinking about when I manage model lines, right?
They're attempting with this to hit the sweet spot of that transaction price. If you can get more EVs in the sweet spot of the transaction price, you have more availability for your average users. I mean, still in the States outside of California, we have this big adoption opportunity. If we can get on price and get it on infrastructure and Inflation Reduction Act is handing price and accessibility, Biden dollars for the infrastructure, handing charging visible in the field, you really got a perfect storm here. We're encouraged on them both, but we will take advantage of them in combination. We support them all. We are working hand in hand with the administration. We have a call with them at least once a week. They keep evolving. I will credit them on this.
You know, they're in listening mode. We changed some of the aspects the industry did on the rules associated with $7.5 billion. The industry also changed some of the rules associated with the Inflation Reduction Act by advocacy and education. While nothing's perfect in a bureaucratic environment, they are listening, and we've seen change. It's one of the first times you've seen kind of whole scale change on this in terms of the rules and implementation, because it's important to get it right.
You brought up a great point, and I'd love to ask you more about your thoughts of how EV adoption is progressing in the U.S. You know, I think we're north of 5% for new vehicle sales last year, but it still seems like there's a heavy concentration in the top few states, and California is obviously a 35% of that. As you work to build a network and think about your capacity, how are you thinking about that? On one hand, people say, look, you know, the reason we haven't dispersed more regionally for EVs is because of the lack of charging infrastructure. Others might say, you know, maybe it's more demand.
Just curious your thoughts of how you're seeing the market develop and the role that you play in kind of helping to drive that adoption.
There has to be a balance. You know, what we're seeing, we're doing a lot of lobbying work and legislative work with the other states. There's an awareness increase slowly, right? California always the leading edge on these type of things. Now as the vehicles have become more attractive and the versatility of the vehicles has become obvious. I mean, you know When I started, I used to laugh because I get all these phone calls in, and somehow when we launched the Nissan LEAF, they had my email address, so my email box was all the crazy comments.
Mm-hmm.
Yeah, well, I can't, I can't haul wood with a Nissan LEAF, so why would I ever buy it? Well, it's a subcompact haul. Car people really don't haul wood with it. And you get all these crazy questions like that, and you're like, "It's a subcompact. It's a commuter car. Come on." Now you look at the space. There's 4 pickup trucks on the market. I just drove again the Ford Lightning just recently. It's an awesome truck. I mean, it's all F-150. It's all truck. We're seeing this curve start to extend and awareness extend to other states. You go back to the education piece because you got to go back and it's rinse, repeat.
You got to go back, you got to inform, you got to talk to them, you got to talk to them about smart infrastructure. A lot of times we're going back in and repeating messages that we have over the last 10 years, getting them back in there and helping them plan. They're starting to listen now. You're seeing states that had no interest in EV or infrastructure now. Certainly you can look back to the Biden administration dollars. It's forcing them to, because now they're getting this on the $500 billion part of it. $5 billion. Excuse me. I wish it was $500 billion. The states are forced. They get an allocation. They get a cut of that. They have to design these RFPs.
In designing these RFPs, they're reaching out to Blink and other companies and consultants on how do we do it right. This is forcing a level of education and involvement at the state level. Simultaneously, those states are going, "Okay, well, it's not enough if EV adoption is gonna be this." I mean, what do you do if California heading towards 20 right now is at 40 and you're in all those border states? You got to structurally adjust or you can't service those vehicles. This effect is gonna happen across the United States. Some states are gonna be slower, some states are gonna be early adopters. We're much further along than we have before.
Terrific. A question.
Thanks for the presentation. Could you talk a little bit about the unit economics of the business in that, how do we think about the host, sort of the utilization rate? I think it's sort of cart before the horse. You need the chargers out there and sort of prime the pump. Could you talk a little bit about the, you know, host economics when you're selling into the units? How does that differ from utilization rates, whether it's a host-owned versus the Blink-owned business model?
Sure. You know, if we look at on a pure sales model, it's up to the host, right? Our job there is to provide them an equipment and where needed service equipment under warranty and provide consistent network services utilization data of the charger. The site host, if they asked us for information at the onset of the contract on what do you think utilization will be, we can inform them. We can even inform them on what pricing should be 'cause they can set their own price on those charging. That changes dramatically when we go to the hybrid and the owner/operator model. On the owner/operator model, before we even install, we have a system and an algorithm, RTAS, combined with other data, site host data, DOT data, and everything that analyzes that site.
The methodology looks at previous EV penetration, previous hybrid penetration policy within the states and does an estimated forecast on what utilization will be at that specific location. We make a determination if they want the hybrid, I mean, if they want the turnkey, does it fit? Does that site host fit our criteria to generate revenue? If it doesn't, then we look at hybrid 'cause the hybrid we have a better return on investment 'cause they pay for the install, we pay for the charger, and we can deal with a little less utilization. We consult with them and tell them what model works and doesn't work. We don't treat anything as, "Boom, that's it." We will negotiate with any site host. We'll find out an economic model. We will be flexible.
The reason that's key is they have to make a determination what's best works for them. We don't wanna walk away and say, "Well, we can't help you." If you look at a ChargePoint on this, they'll walk away, right? The site host says, "Well, I want a hybrid," ChargePoint doesn't offer a hybrid. They want an operator, ChargePoint doesn't do that, right? We'll say, "What do you want? Do you wanna buy it? Do you want us to partner? You want us to own and operate? Which works best for you?" We'll share utilization data and what the station economics are. Now when we look at the economics on both model, on a hybrid, if we hit 10% utilization, that's a payback in just over a year.
If it's a turnkey, it's a payback in under 18-24 months on that. We already have those calculations, and we know that once we hit that milestone, then that investment is paying for itself. You cross-apply that to our average contract. Our average contract is 7+2, so, with 2 renewals, that's 21 years on the owner/operator model. By the time we hit the 7 years, we're way into making gravy and money on that. On a hybrid, the interesting thing is we started with hybrids at a 5-year with the 2 renewals bringing it to 15, but a lot of the hybrids have gone to 7 now, so they're even at that 21 now. You know, really that gives you this equation. The other thing that's interesting is you have additionality components.
What happens when you add a charger built into it? At any of our site host contracts, and we're at the high majority of our contracts fit into this. There's an occasional one that does not. The minute we put in a new charger at that location, everything recalibrates and the starting points begins for all the chargers. You get sustainability, right? You get a contract that you can bet on that is gonna return revenue to the company for the foreseeable future.
Perfect. Why don't we talk about hardware for a few minutes. Two questions there. First, how do you differentiate your hardware from the competition? Two, you know, one of the issues that the industry is facing are kind of failed charging sessions and quality. A lot of talk about that as well. I'm curious on your positioning there and what you're doing as well as your thoughts on the industry more broadly around this issue.
Yeah. It's been tough for the whole industry. Every single company backslid on, you know, one of the, you know, crowdsourced versions of a score, which was PlugShare. Everybody went backwards on that. We've been doing quite a bit of root cause analysis on all our systems, seeing One of the variables that we didn't talk a lot about is you had a lot of charger fails that weren't actual failures. With Sprint, T-Mobile, AT&T, and others shutting down the 2G and 3G network, you had a lot of j-chargers out there that were simply shut off. You would go up to them with your mobile phone and all that and try and connect, but you couldn't get a charge because the network was gone.
The industry, and this is all companies, have been working over the summer and everything to make sure that they're replacing all that hardware or at least going into the units, and upgrading them with an upgrade kit was back. That hit everybody, and that dropped the score dramatically. It even increased this awareness about quality in an unnatural way, right? Beyond that, we're working with the industry to make sure, you know, what type of quality are we talking about. It's really interesting and dynamic. The point of failure in most charging environments happens at the process, at the beginning there. It's either if it has a credit card reader, it's there, or at the initiation in a failure on the screen, the RFID card or the mobile app.
That's where we're putting more technological standards in to get all of that right. A lot of it has to do with interoperability between chargers, interoperability between systems and all that. There's been a lot of great meetings. Our CTO just went out to California and participated in a massive quality meeting where we're trying to extract it from the hyperbole that's out there and get it back down to the facts. One big thing is happening, which is a good thing for the industry. California came out a rule a couple of years ago, and it was supposed to go in effect in January, they pushed it into June of this year. That was you had to have a credit card reader. Not only just a credit card reader, but a magstripe credit card reader.
Number one point of failure on a charger is a magstripe credit card reader. By the way, just pain because they're old school. They've been prone to failure. They're outside, which increases the environmental impact of them. Now the governor is looking to rescind that rule. The industry is quietly applauding that because that would have been another just massive failure that we had. We're trying to take both a root cause analysis to improve product quality and network quality and also a positive policy move as an industry to do it. The administration, I'm, you know, I'm very politically neutral, but they've held some very productive meetings, I went to one in D.C., trying to get this. Blink is listening.
We're gonna work with to have, you know, standards on network uptime, standards on charger uptime, and then improve quality and connectivity across all chargers. If it's somebody that is a ChargePoint user and they have a ChargePoint app, they can still go to somebody else's charger. That's one of the frustrations where they say, "Well, it doesn't work." Well, it doesn't work 'cause it wasn't made interoperable. We're working on all those, and we'll get it down. I don't think you're ever gonna have a situation where you're gonna have 100% positivity, just like you don't with fueling stations today. I'm sure you've driven into a gas station that's got a bag on it on one pump, and then all the other pumps are active. You're still gonna have down units. They're machines.
DC fast charging is more susceptible to breakdowns than L2 charging. We gotta make it so that you don't ever have a stranded customer. Failure to fuel is not a good thing. The industry Blink, we have to make sure we tackle this quality issue. Again, this goes back to this building range confidence, so that when you have a driver out there, they know they can pull into a charger, they know they've got a charger that works at their multi-family dwelling, at their home, et cetera. We're all in.
Perfect. Wanted to ask about the SemaConnect acquisition. Can we just talk about that a little bit more and just be clear for the type of chargers that they're producing and whether they also kinda qualify for the Buy American incentives?
Yeah. Right now we're 100% compliant on the standard as the new rules just exist out of all chargers coming out of our Bowie facility. That's our 6, 7, and 8 series chargers on there. If we're in a federal bid that requires it, we're 100% compliant today. That's primarily on the metal enclosure. We already resourced that. If we look at that as it relates to the L2 chargers as a whole, the 55%. We already put a lot of effort and money when we acquired SemaConnect into structurally adjusting the Bowie facility, then be able to meet the 55% quality. This new rule that came out actually gave us more time to get it right. We're actually now evaluating some supplier contracts, trying to get a better price and all that.
That we're done. We're gonna meet that on a product level. What you'll see us doing, and we've already starting to do this, is we're blending the different portfolios together, right? We won't have different units out of Bowie and different units out of our facility in Phoenix, which does most of our contract manufacturing chargers come in through there. We'll have all one. The SemaConnect with our factory in India that produces the base parts for all the assemblies will then produce a unified charger that services for all our needs globally and the United States. It'll build the parts. In the U.S., if you read into the law, what's really interesting is you have to have the subsystems manufactured in the U.S. to meet this 55%.
If you dig deeper into it, the 55 is gonna go to 65 and then to 75. You really have to start today with this advanced planning on how you're not gonna just do the 50, but how are you gonna get the 65 and the 75. We've got all of that figured in right now. We know we're gonna hit the 55, no problem on L2. We'll be able to do the subsystem assemblies, which count towards the 55. Now we're replicating, rinsing, and repeating the same thing for the DC fast charger platform 'cause that's all ours and we're building that from the ground up. We're covering both globally products and U.S., and we're controlling our own destiny on that topic.
Terrific. You mentioned, I think one of the slides, getting to about 100,000 a year in capacity and in production. What's the timeframe for that? How much capital do you need to actually get there?
Yeah. It is, as with any production increase, it's staged. At the first stage is to ship Bowie production up from where it was when we acquired, which is about 12,000 max up to 20. I'm happy to say that we've already done that. We're gonna then go to full second shift, which is gonna up that even further. We're expanding the Bowie facility. We're adding sq ft, buildings in an adjacency to be able to then go from that last, what we can get out of the second shift to new.
We could do it on a third shift basis, but going back to the quality question, quality of third shift is a little difficult, and it's hard to get people to work third shift, and you get a little bit inconsistency in the product quality and on the management of that labor force. We've elected not to go third, and we're gonna increase the square footage to get to that extra 50,000 in production. The new facility is gonna be dedicated to 10,000 DC fast chargers produced for the United States market. If we can export, we will export those chargers, and we have some strong possibilities there as well, but we haven't announced those plans yet. The remaining capacity out of there is L2.
You gotta imagine, in a production environment, DC fast charging is line complex. Traditional manufacturing is line with a lot of controls over them, a lot of clean environments because of the complexity. L2 is a lot of table manufacturing, where it's not quite a line as you would see in a traditional manufacturing. You don't have quite the clean room type of high-tech things when you're putting together the PCB boards and the other boards to go into the charging modules. It greatly differs. Less square footage for L2. Double and triple the square footage for DC fast charging in this new facility. We'll have information on the facility selection. We had a meeting yesterday. We're down to five different markets with sites in each market, and we should have an announcement shortly on our final selection.
Perfect. A question?
Just maybe a quick question on where do you see, for instance, I mean, aspirationally, your mix in 2030, talking about, you know, own service, hybrid, et cetera. What would be the, I would say, average ROIC of the company in this context? Talking, I don't know, about 10%, 30%, 50% utilization rate.
Okay. I missed part of the question. Could you repeat it?
It's good. Just on a...
The mix, your mix in 2030, aspirationally, okay? Where would be the ROIC of the company, depending on different assumption on the utilization rate?
What is our product mix?
The aspirational mix in 2030.
Yeah. Is the product mix differentiated by type of charger or just L2 to DC? Just L2 to DC? We think our product mix is gonna follow largely what the data is telling us, and we're gonna plan to that. You know, somewhere 85%-90% is going to be L2 and 15 to as low as 10% is gonna be DC in the overall product mix. You're gonna see variability and flexibility on that, depending on when $ come in and who's purchasing. Dealerships, we do a tremendous amount of dealer business on that, are all under mandates now to get DC. You'll see this artificial increase on DC as the dealers continue to outfit themselves across the United States. It's gonna flatten out again.
If I look at our number one sales channel for that, it's dealerships right now on DC fast chargers outside of state and municipal programs that are grant funded. I think the other is where we're gonna be in 2030. We see that. As I said, we see some variance in it as we're moving forward, but in 2030, that's the actual number we see. We see DC fast chargers are gonna remain about 10% of the portfolio, and then 90% is gonna be L2. We see a closer mix on the owner operator model versus the sales model, and then the owner operator model slowly taking over, especially as we get into 2026, 2027, 2028 and 2029.
That's because you're gonna see hypercommoditization on a lot of the L2 chargers. Competitive margins, even though we have a target margin of 35% as a company, and we're doing well on tracking and it's gonna be one of the best in the industry, you're gonna see margin squeeze on that over time. We'll see product sales start to go down in margin and then kilowatt sales go up.
It's going back to the next owner operate over time.
Yep.
Interesting. Okay. We're out of time, but I'll sneak one quick one. I did notice one of your chargers earlier seemed like it had an advertising screen.
Mm-hmm.
Is that something you're getting into as well? What, what do you think about advertising, particularly as you shift your business mix towards more owner operate over time?
We've analyzed, you know, the Volta model, and Volta's now being absorbed in another company. You know, there's advantageous to it. You know, at CES a year ago, we did a prototype, then we did a final design. What you're seeing in the one we showed, that's about 80% of production. There's some tweaks that have to happen to it. Right now we're in, you know, the manufacturing phase is who we're gonna procure for and where we're gonna assemble on that. The design, that's basically done. What you saw there. We're going to put that in, and we'll have. We're not gonna get in the advertising business. That's not our business. Our business is charging services.
We're already working with 2 companies, and we'll award it to 1, who are gonna do content management and advertising, and we'll have a revenue split on that. Then on the charging services, it's gonna be us, and we're gonna derive revenue from the kilowatt sales on that. There may be application on the sales model, and some people will buy those, but predominantly, we see that as another positive element. If you imagine, you know, as more people fill in more chargers in their parking lots, you don't want every 1 of them to be that charger, right? Now we have a complete portfolio to offer any of the large sites. You want an advertising unit? Okay, we can put that in the front, and then we can do 10 L2 chargers, and we've already got that.
We can do a turnkey solution for them across DC, advertising, and L2. We see it fitting into us, and the difference is, you know, we're not in it for free. If we own and operate it, we're monetizing the kilowatt. We're not giving out the charging for free, and we'll have a better economic model than the previous models have in the past. You know, what we've seen is that it's mostly an advertising company, not a charging company. We're flipping it to it's a charging company that has an advertising element.
Got it. I think we're out of time, so we'll end it there. Brendan, thanks so much.
Sure. Absolutely.
For joining us. Thank you, to Blink team for participating. It's a great conversation.
All right.
Thank you.