In challenge to Tesla, major automakers launch EV charging network

Evgo

26/07/2023 15:13

July 26 (Reuters) - A group of major automakers on
Wednesday said they were forming a new company to provide
electric vehicle charging in the United States in a challenge to
Tesla and a bid to take advantage of Biden administration
subsidies.
    The group includes General Motors  GM.N , Stellantis
 STLAM.MI , Hyundai Motor  005380.KS  and its Kia affiliate,
Honda  7267.T , BMW  BMWG.DE  and Mercedes Benz  MBGn.DE  ,
brands representing about half of U.S. vehicle sales but a small
share of the EV market dominated by Tesla.
    The unusual coalition of competitors said the new
joint-venture company would aim to become the leading provider
of fast charging in North America with a target of rolling out
30,000 chargers, starting along major highways and in cities. 
    The automakers did not specify how much they would invest
individually or collectively, but said they would be open to
additional investment or participation from other companies,
including outside the auto industry. A name for the venture was
not announced.
    Tesla  TSLA.O , which accounted for more than 60% of U.S. EV
sales last year, has the largest current network of
fast-chargers with almost 18,000 Superchargers in the United
States. 
    Tesla said earlier this year it would open part of that
charging network to EVs from rival brands in order to be
eligible for a share of funding from the $7.5 billion in federal
subsidies on offer to expand the use of EVs.
    Tesla’s lead in building out a network of chargers has given
it sway in setting the standard for how future EVs will connect
and power up, something smaller charging companies and other EV
makers have viewed with concern.
    GM, Mercedes and others have signed on to adopt
Tesla-developing charging technology from 2025 to get access to
a larger share of its Superchargers.
    The other automakers – Stellantis, Hyundai, Honda and BMW –
have not committed to the Tesla technology known as the North
American Charging Standard (NACS) and have product plans that
rely on a rival known as the Combined Charging System (CCS).
    The new charging company will support both CCS and the Tesla
standard.
    “A strong charging network should be available for all –
under the same conditions – and be built together with a win-win
spirit,” Stellantis CEO Carlos Tavares said in a statement.
    In a statement, chief executives of the seven auto brands   
 said a charging network built out like gas stations with
restrooms, food service and retail operations would support a
faster rollout of EVs, which they said they expected would top
50% of U.S. sales by 2030.
    The new company would compete against established EV
charging companies, including Volkswagen's  VOWG_p.DE  Electrify
America, ChargePoint  CHPT.N  and EVGo  EVGO.O , which are also
looking to accelerate the rollout of chargers with federal
funding.
    The Biden administration has set a target of hitting 500,000
chargers by 2030, an almost four-fold increase.

 (Reporting by by Kevin Krolicki and Ben Klayman; Editing by
Chizu Nomiyama)
 ((kevin.krolicki@thomsonreuters.com; +813 6441 1800; Reuters
Messaging: kevin.krolicki.thomsonreuters.com@reuters.net))