Seven top automakers, General Motors, BMW, Honda, Hyundai, Kia, Mercedes, and Stellantis, are teaming up to build a big electric vehicle (EV) charging network in North America. This will make it easier for people to think about switching from gas-powered cars to electric ones.
The companies aim to create “high power” charging stations with around 30,000 plugs by 2030. This will nearly double the current number of quick-charging plugs in the U.S. and Canada. The exact financial details and number of charging stations are not disclosed yet, but the companies have promised to invest billions of dollars into the project.
Fast chargers, which can charge a battery to 80% in 20 minutes to an hour, will be used. This new network is expected to have 10 to 20 charging plugs per station, meaning there could be between 1,500 and 3,000 stations. To compare, Tesla’s network—the largest fast-charging network in North America—consists of 2,050 stations and over 22,000 plugs in the U.S. and Canada.
The network will be open to all EV owners and will include plugs that are compatible with all types of electric cars, including Tesla’s.
According to the Associated Press, electric vehicle sales in the U.S. have been steadily climbing, accounting for 7.2% of all new vehicle sales in the first half of this year with more than 557,000 vehicles. Despite an increase in EV inventories in June, forecasts indicate that EV sales will surpass 1 million for the first time this year. The consulting firm LMC Automotive anticipates that EVs will constitute 14.4% of the market in 2025 and nearly 40% by 2030.
“The parties have agreed not to disclose specific investment numbers at this time, but the seven founding automakers intend to work as equals to ensure the success of the joint venture,” the companies said in a written statement answering questions from The Associated Press.
The current charging network has faced criticism for being unreliable and in poor locations. This move by the automakers aims to address those problems.
AP sites that, S&P Global Mobility analyst, Stephanie Brinley, suggests this development will spur EV sales in North America by addressing concerns over long-distance travel that current potential buyers are grappling with.
In addition to ensuring the new charging stations are conveniently located, the automakers have pledged to use renewable energy to power the chargers to the greatest extent possible. They also intend to provide amenities such as restrooms, food services, and retail outlets at the charging stations.
The automakers will seek funding from the U.S. government’s bipartisan infrastructure law to help pay for this project.
The project is a response to President Joe Biden’s policies, which are encouraging the creation of a U.S. electric vehicle manufacturing base and offering tax credits to increase EV sales.
EV sales have been rising in the U.S., accounting for 7.2% of all new vehicle sales in the first half of the year. And with the development of this new network, more people may consider switching to EVs.
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