Seven major automakers, including General Motors, Stellantis, Hyundai Motor, Kia, Honda, BMW, and Mercedes Benz, announced Wednesday the formation of a new joint venture to establish 30,000 electric vehicle (EV) chargers across North America. By challenging Tesla's dominance in the EV market and utilizing Biden administration subsidies, these participating automakers represent around half of the U.S. vehicle sales.
The joint venture aims to initially implement chargers along major highways and in cities without specifying individual or collective investments. While open to additional investment or participation from other companies, including those outside the automotive industry, the joint venture has not been named yet.
According to Akshay Singh, a partner at consultancy PwC Strategy&, this partnership will lower investment costs compared to constructing individual charging networks. It also enables control over customer experience and data collection.
Currently, there are over 30,000 fast-charging machines across the nation with costs ranging from below $100,000 to more than $200,000 for high-powered versions. Industry executives estimate that establishing this venture could amount to multiple billions of dollars.
The White House praised the initiative. "We think this is an important step forward," said White House press secretary Karine Jean-Pierre. "It's creating new union jobs for installation and maintenance." As part of its broader goal to achieve 500,000 chargers by 2030 - nearly a four-fold increase - the Biden administration has welcomed this development.
Tesla has the largest network of fast chargers currently with nearly 18,000 Superchargers. Earlier this year, it committed to opening part of its charging network to competitor EVs to qualify for a share of $7.5 billion in federal subsidies.
Tesla's lead in electric vehicle charging has influenced industry standards, with GM and Mercedes agreeing to adopt Tesla's technology from 2025. However, Stellantis, Hyundai, Honda, and BMW have not committed to Tesla's North American Charging Standard (NACS), relying instead on the Combined Charging System (CCS). A new charging company, supported by seven auto brands, will accommodate both charging standards and compete with Tesla's network. The venture aims to establish charging stations similar to gas stations to accelerate EV adoption. This initiative will also compete with established charging companies like Electrify America and EVGo. The partnership is subject to regulatory approvals, and the Justice Department may review potential antitrust concerns.
