The seven-company joint venture aims to be the largest charging network in North America. It can do so with the help of $5 billion in federal funds.
Washington — Seven car companies announced plans Wednesday to launch their own electric vehicle charging joint venture with the aim of becoming « the leading network of reliable high-powered charging networks in North America. »
The joint venture seeks to install at least 30,000 high-powered charge points fueled by renewable energy in urban and highway locations near amenities. The first U.S. stations will be made available starting in summer 2024 with the venture subject to customary closing conditions and regulatory approvals this year.
It’s a clear dig at Tesla Inc., the EV automaker that currently holds that title. But unlike Tesla, the seven-member joint venture has specifically designed its chargers to take advantage of $5 billion in federal funding for charging along the nation’s major highways.
Made up of General Motors Co., Stellantis NV, BMW AG, Honda Motor Co. Ltd., Hyundai Motor Co., Kia Corp. and the Mercedes-Benz Group, the joint venture’s chargers will support two kinds of connectors: the Tesla-favored North America Charging Standard (NACS) as well as the Combined Charging System the international standard required by federal regulators — that automakers like GM and Ford Motor Co. have been using.
But those Detroit rivals recently have said they will adopt the NACS standard pioneered by billionaire Elon Musk’s Tesla to give their customers access to Tesla’s Supercharger network with more than 12,000 chargers. Mercedes-Benz, Rivian Automotive, Nissan Motor Co. and Volvo Cars also announced they would adopt the NACS standard to give their customers access to Tesla’s charging network.
The developments are representative of how quickly the auto industry is shifting and the lengths companies will go to quickly pave the way for mass adoption of electric vehicles.
“GM’s commitment to an all-electric future is focused not only on delivering EVs our customers love, but investing in charging and working across the industry to make it more accessible, » GM CEO Mary Barra said in a statement. « The better experience people have, the faster EV adoption will grow. »
The joint venture will leverage both public and private funds to build the multibillion-dollar network, though financial details aren’t being disclosed. The companies expect these investments will meet the requirements of the U.S. National Electric Vehicle Infrastructure program supporting the installation of 500,000 chargers in the United States.
The lack of reliable and fast charging systems is one of the most frequently cited reasons consumers choose to avoid EVs. So when automakers like Ford and GM saw the opportunity to access Tesla’s network — which the company had been building since 2012 — it made sense.
“At the same time, nobody wants to be particularly dependent for a key part of the use of your vehicles on a direct competitor, » said Sam Abuelsamid, principal research analyst at Guidehouse Insights.
