A group of major automakers, including General Motors, Stellantis, Hyundai Motor, Honda, BMW, and Mercedes Benz, announced on Wednesday their formation of a new company aimed at providing electric vehicle (EV) charging infrastructure in the United States. This move is seen as a direct challenge to Tesla’s dominance in the EV market and a strategic decision to capitalize on the subsidies offered by the Biden administration.

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.