Will This Joint Venture Help The US And Canada EV Sector Reach Seventh Heaven?

Electric Vehicles (EVs) are gaining popularity, right?

This is primarily because they are better for the environment, which has resulted in a rise in the sales of EVs.

There is a slight problem though; there aren’t enough chargers around and this is hampering customer confidence in purchasing them.

Recently, we covered a story about how the EU (European Union) is planning to install fast charging stations every 60 kilometers (around 37 miles) along the Trans-European Transport Network (TEN-T), the EU’s main transport corridor.

Now, North America is following suit!

There is a joint venture being set up that consists of seven top automakers to address the concerns of a low number of charging stations and enhance the charging Network in North America.

What’s it about? Let’s explore!
 

What Is The New Joint Venture About?

 

• The joint venture will be between BMW, GM, Honda, Hyundai, Kia, Mercedes-Benz and Stellantis.

• The plan is to put up easy-to-use DC fast chargers along US and Canadian highways as well as some urban areas, with plans to use renewable energy.

• The aim is to begin operations by the summer of 2024 in the US (Canada will have to wait until the initial stations are installed) and eventually install at least 30,000 fast chargers by 2030 with an eye on total completion by 2030.

• This will be done by using National Electric Vehicle Infrastructure (NEVI) funding as well as other private and public funding from state and federal sources.

• The new stations under this initiative will cater to all EV models made by partnered companies, with plans to integrate the “Plug and Charge” standard being pushed by the Federal Highway Administration.

• All stations will offer the standardized Tesla North American Charging Standard (NACS) ports and the Combined Charging System (CCS) plugs.

   

What Is The Current Scenario?

 

• Reportedly, the US and Canada have around 8,700 DC fast charging stations with 36,000 plugs currently publicly available as per the US Department of Energy. This includes 32,000 plugs in the US, which cater to 2.3 million EVs, with a ratio of 72 vehicles per charger.

• This becomes problematic, as the NREL (National Renewable Energy Laboratory) believes there will be a need for 182,000 fast chargers for the 30-42 million EVs expected on the road by 2030. Essentially this means that a lot more charging stations are needed!

• As per a report, Tesla possesses the largest network of fast chargers (nearly 18,000) in the US but is not part of the joint venture.

• However, the current problem extends beyond numbers, as Sam Abuelsamid, Principal Research Analyst at Guidehouse Insights, said, “It's not just a matter of not enough chargers. The chargers that were there often didn't work.”

• According to a study, at the beginning of 2023, 21% of EV owners faced difficulties in using public chargers (compared to 15% in 2021), due to issues like broken displays, software bugs, severed power cords, others occupying charging spots and other reasons. This brings up the need for not just more EV chargers but higher reliability.

   

What Is Being Said?

 

• Oliver Zipse, CEO, BMW Group, said, “North America is one of the world’s most important car markets – with the potential to be a leader in electromobility. Accessibility to high-speed charging is one of the key enablers to accelerate this transition. Therefore, seven automakers are forming this joint venture with the goal of creating a positive charging experience for EV consumers.

• Sam Abuelsamid, Principal Research Analyst at Guidehouse Insights, said, “Anything that gets more — and especially more reliable chargers — out there will be a benefit to anybody considering EVs. It should help sway some people who were on the fence about buying an EV.”

• Mary Barra, CEO, GM, said, “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. The better experience people have, the faster EV adoption will grow.”

 
Essentially, businesses operating in EV manufacturing, EV charging stations or products and services associated with the industry are about to find themselves in a windfall of orders with this initiative by US automakers!

What do you think of the joint venture? Let us know in the comments below!