Road trip charging of electric cars doesn’t have to be so hard and that’s appears to be the impetus behind a yet-unnamed charging network venture announced to rival Tesla’s supercharger network.
BMW, GM, Honda, Mercedes, and others are investing in the joint venture, an Ionity fast charging network. While several automakers have signed on to Tesla’s (TSLA) Supercharger network, it seems many of them are still looking to blaze another path.
Seven multinational automakers BMW (BMWYY), GM (GM), Honda, (HMC), Hyundai (HYMTF), Kia, Mercedes-Benz Group (MBGAF), and Stellantis (STLA) announced on Wednesday that they will form a new EV charging network that they say will “significantly expand access to high-powered charging” in North America.
Joint EV charging network to rival Tesla
The joint venture that rival Tesla’s for battery powered electric vehicles, unnamed at this point, intends to install at least 30,000 “high-powered” EV charging network plugs across North America, with the first stations set to open in the summer of 2024. The Wall Street Journal reported that the automakers collectively intend to spend at least $1 billion to fund the joint venture.
Most interestingly, the group says the new EV charging network will allow any battery-powered electric vehicles from any automaker, as long as the vehicle uses the Combined Charging System (CCS) or Tesla’s North American Charging Standard (NACS). It is unclear yet whether the charging stations will natively support Tesla’s NACS standard or require the use of an adapter.
Existing partnership with Tesla
Two of the automakers GM and Mercedes currently have partnership deals with Tesla to incorporate the NACS plug in their North American vehicles in 2025 and to have access to the Supercharger network next year. Hyundai and its sister brand Kia have been rumored to be discussing a similar deal with Tesla.
In a statement to Yahoo Finance, GM said the new joint venture will not affect its partnership with Tesla.
“GM is committed to investing in an EV ecosystem that ensures widespread access to charging for EV drivers,” a GM spokesperson said. “By working with companies across the industry to accelerate the deployment of charging infrastructure, we can continue to expand access across residential, workplace, and public charging. This announcement won’t change GM’s existing commitments or collaborations but is in addition to those initiatives.”
A Mercedes spokesperson told Yahoo Finance, “Today’s announcement will not affect EV charging plans previously announced by Mercedes-Benz.” Mercedes also intends to build its own bespoke network of chargers with 3,000 high-power DC chargers coming to North America.
What’s for offer by new EV charging network?
Unlike traditional charging station destinations operated by networks like ChargePoint, EVgo, or VW Electrify America, the automakers say their network will include multiple high-power DC chargers at each location, offer amenities like food service and restrooms, and be powered solely by renewable energy. Initial stations will be located near major metropolitan areas, and later along highways and travel corridors.
The joint venture is expected to be established later this year, with the deal closing subject to regulatory approval, the automakers said.
Not part of Ionity fast charging network
Conspicuously absent the coalition are three giants: Volkswagen, Ford and Toyota.
Ford was the first to adopt Tesla’s charging standard, and VW owns a majority stake in Electrify America.
The big picture
As EV sales increase, the demand for fast and reliable public charging is also growing.
Other competition
It will compete not only with Tesla, but also with other charging networks like VW Electrify America, EVgo and ChargePoint — many of which have separate partnerships with the carmakers backing their new competitor.
