"Stop Tesla's Monopoly"... Hyundai, Kia, GM, and Others Form Electric Vehicle 'Charging Alliance' (Comprehensive)

30,000 Charging Stations Built in North America... "At Least $1 Billion Investment"
Tesla Expands Charging Network, Responds with Joint Venture

Hyundai Motor Company and Kia have formed a 'charging alliance' in North America with General Motors (GM), BMW, Honda, Mercedes-Benz, and Stellantis, agreeing to jointly install more than 30,000 charging stations in the region.

As charging stations have become influential enough to determine the success of electric vehicles (EVs), this alliance is seen as a response to Tesla, the world's largest EV manufacturer, moving to monopolize the charging network. Competition over control of EV technology standards, including charging stations and charging methods, is expected to intensify further.

◆ 30,000 Charging Stations in North America... Offering Both CCS and NACS

On the 26th (local time), Hyundai, Kia, GM, and four other major automakers announced in a joint press release that they will establish a joint venture to build an EV charging network in North America. Through this joint venture, the seven manufacturers plan to build at least 30,000 high-performance charging stations in the region. The first charging station will open in the United States in the summer of 2024, followed by expansion into Canada.

The charging stations will provide both the existing U.S. standard Combined Charging System (CCS) and Tesla's charging standard, the North American Charging Standard (NACS) connector, to be accessible to all EV customers. The joint venture also stated that it plans to supply power exclusively from renewable energy sources in line with the participating companies' sustainability strategies.

They explained, "We decided to create a joint venture to accelerate the transition to electric vehicles in North America," adding, "We want to make EV charging more convenient, accessible, and reliable."

The charging stations will feature canopies (roof-like covers) and amenities such as restrooms, food services, and retail stores. They also mentioned plans to install additional amenities at some flagship charging stations.

The joint venture is expected to be established within this year after regulatory approval. Although the companies did not disclose specific investment amounts, foreign media such as The Wall Street Journal (WSJ) reported that the companies are expected to invest at least $1 billion (approximately 1.27 trillion KRW).

◆ While Aiming to Expand EVs... The Core Goal is 'Checking Tesla'

The direct reason these companies are establishing a joint venture is to accelerate the transition to electric vehicles. Since many consumers hesitate to purchase EVs due to a lack of charging stations, they aim to solve this problem and focus on expanding and popularizing EVs.

According to the U.S. Department of Energy, as of July, there are 32,000 public DC fast chargers in the United States. These are used by 2.3 million EVs, resulting in a ratio of about 72 vehicles per charger. The National Renewable Energy Laboratory (NREL) estimates that to support the 30 to 42 million plug-in vehicles expected to be on the road by 2030, approximately 182,000 DC fast chargers will be needed.

[Image source=Reuters Yonhap News]

To this end, the Biden administration operates a subsidy program (NEVI) to expand EV charging infrastructure. As part of climate change measures, the administration has declared its intention to accelerate the transition to EVs, believing that a well-established charging network will rapidly increase EV demand. The companies expect the joint venture to meet the program's requirements and qualify for subsidies. The White House described this decision as an "important advancement."

The bigger reason for the companies' involvement appears to be a strategic move to compete with Tesla, the industry leader, and prevent Tesla from dominating the EV charging network. According to the U.S. Department of Energy, Tesla, which has expanded its Supercharger network for over a decade, occupies 60% of all fast chargers in the U.S.

Especially this year, Tesla has rapidly expanded its charging network by partnering with major automakers such as GM, Ford, Rivian, and Volvo. As more companies join Tesla's charging network, the NACS charging method, Tesla's standard, is increasingly likely to overturn the previously dominant CCS standard.

In this context, GM, a leading U.S. automaker, appears to have shown its intention not to rely solely on Tesla by establishing a joint venture with six other companies, separate from its cooperation with Tesla.

However, apart from the joint venture plan, some companies have individually announced plans to expand their charging networks. For example, Mercedes-Benz announced earlier this year plans to build 10,000 fast charging stations worldwide, including 3,000 in North America. Volkswagen, a major shareholder of Electrify America, one of the world's largest fast charging providers, did not participate in this joint venture.

Accordingly, foreign media report that the joint venture will likely face competition with these companies' charging networks as well.

This content was produced with the assistance of AI translation services.