A group of major automakers, including General Motors (NYSE:GM), Stellantis (NYSE:STLA), Hyundai (KS:005380) and its Kia (KS:000270) affiliate, Honda (NYSE:HMC), BMW (ETR:BMWG) and Mercedes-Benz (ETR:MBGn), announced Wednesday that they are forming a new company to provide electric vehicle charging in the United States.
The new charging company will support both Combined Charging System (CCS) and the Tesla (NASDAQ:TSLA) standard.
The atypical alliance of rival firms announced their shared ambition for their joint-venture enterprise to emerge as North America's top provider of rapid charging. With an initial plan to deploy 30,000 chargers, their focus will primarily be on major highways and urban areas.
While the auto manufacturers did not disclose their individual or collective investment amounts, they expressed openness towards further investment or involvement from other companies.
Tesla said earlier this year that they would open part of their 18,000 supercharging network to EVs from rival brands in order to be eligible for a share of funding from the $7.5 billion in federal subsidies.
GM, Mercedes, and others have signed on to adopt Tesla’s charging technology, starting in 2025, to gain access to a larger share of its Superchargers. However, others like Stellantis and Honda have not committed to the Tesla technology and have product plans that rely on rival charging tech, CCS.
“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.
Shares of GM, HMC, and TSLA are down 0.50%, 0.82%, and 0.40% respectively. While shares of STLA are up 3.35% in mid-day trading.