Although these automakers represent about half of all
vehicle sales in the US, they have a relatively small share of the EV market
still controlled by Tesla. In order to establish themselves as leading
providers of fast charging in North America, the competitors plan to roll out
30,000 chargers strategically placed along major highways and in cities.
While the automakers did not disclose individual or
collective investment figures, they expressed their openness to additional
contributions from other companies, including those outside the auto industry.
The joint-venture company also remains unnamed at this stage.
Currently, Tesla leads the market with a network of almost
18,000 Superchargers across the United States. In an effort to be eligible for
federal funding worth $7.5 billion, Tesla recently announced its plan to allow
EVs from rival brands to use its charging network. This move, however, raised
concerns among smaller charging companies and other EV makers who fear Tesla’s
influence in setting standards for future EV connections and power sources.
To gain access to a larger share of Tesla’s Superchargers,
automakers such as GM and Mercedes have inked agreements to adopt the
Tesla-developed charging technology starting in 2025. However, other automakers
like Stellantis, Hyundai, Honda, and BMW have not committed to Tesla’s North
American Charging Standard (NACS) and instead rely on a rival technology called
the Combined Charging System (CCS).
Addressing these differences, the newly formed charging
company plans to support both CCS and the Tesla standard, ensuring a level
playing field for all EV users.
Stellantis CEO Carlos Tavares emphasized the importance of
collaboration, stating, “A strong charging network should be available for all
– under the same conditions – and be built together with a win-win spirit.”
The CEOs of the seven auto brands highlighted the necessity
for a charging network resembling gas stations, complete with restrooms, food
services, and retail operations. This comprehensive infrastructure would
facilitate a faster adoption of EVs, which the automakers predict will account
for over 50 percent of US vehicle sales by 2030.
The new company will face competition from existing EV
charging companies such as Volkswagen’s Electrify America, ChargePoint, and
EVGo. These companies are also seeking to expedite the rollout of chargers with
the help of federal funding.
The Biden administration has set a target of establishing
500,000 chargers by 2030, a nearly four-fold increase from the current number.
With this collaborative effort, major automakers aim to
create a charging network that supports the growing demand for EVs, making it
easier for consumers to transition to electric vehicles while also stimulating
the overall EV market.