EV infrastructure growth demands partnerships

Many industry insiders liken electric vehicles and charging infrastructure to a chicken-and-egg scenario. But some say it's more like peanut butter and jelly — they have to stick together.

Too much infrastructure too soon, and charging companies could fail. Too little, and EV owners won't have enough options to charge on the road.

"You need the base of peanut butter of the infrastructure to be used by the vehicles so that we can have the business case to build more chargers that can support more vehicles," said Jonathan Levy, chief commercial officer for charging network EVgo.

Legacy automakers are working with charging companies to scale reliable networks as they roll out more EVs. Tesla set the standard for a dependable network, and other automakers want to ensure their customers have a similar experience.

Owners of gasoline-powered vehicles don't wonder where they can fill up, as stations are plentiful.

EV owners want the same convenience, and they expect a solution from automakers, said Arun Kumar, managing director in the automotive and industrial practice at AlixPartners.

"It could be a make-or-break between a brand that actually has those things and a brand that doesn't," he said.

Most automotive brands have partnered with at least one charging company to offer public or home charging discounts.

Customers of 13 brands receive complimentary charging on the Electrify America public fast charging network. Electrify America, owned by Volkswagen Group of America, has charging stations in 47 states.

"There's a natural symbiotic relationship between a car company that wants to sell a new EV and leveraging the Electrify America network," said Anthony Lambkin, the company's vice president of operations. Partnerships help automakers and dealers "demystify the whole charging experience because there's a network that's ready to go," he said.

Some automakers are collaborating with charging companies to establish branded networks that are still available for all makes.

Mercedes-Benz's partnership with ChargePoint and General Motors' partnership with EVgo are among the biggest tie-ups.

EVgo and Ultium, GM's EV brand, announced a goal in 2020 to add more than 2,700 Ultium-branded fast chargers in cities and suburbs by 2025. The next year, they expanded the target to 3,250 chargers. The companies also partnered to install an additional 2,000 chargers at 500 Pilot Flying J travel centers through 2025.

GM approves every charging site Ultium builds with a partner, and it includes uptime requirements and service level agreements in contracts with charging companies.

Reliability has been a pain point for EV drivers.

Last year, 1 in 5 charging attempts in the U.S. failed, according to J.D. Power.

"We're going to invest in this and make sure it's a great experience," said Aaron Wolff, associate director of Ultium Charging Network.

"There is nothing I care about more right now than chargers just working when you show up to them."

Mercedes-Benz partnered with ChargePoint this year to install more than 400 charging hubs with more than 2,500 fast charging ports throughout the U.S. and Canada. The stations will be in metro areas, along major highway corridors and close to retail and service destinations, the companies said.

The expertise of charging companies will be critical to portfolio management, installation management, site operations and maintenance, procurement of energy provision, and hardware and software, Humza Ahmad, spokesman for Mercedes-Benz Financial Services USA, said in an email. Mercedes-Benz Financial is coordinating the charging program.

Mercedes-Benz will share customer service guidance with ChargePoint and will select and approve sites, pricing policy and providers of amenities, such as food, beverages and restrooms.

"We place the highest value on the functionality, quality and uptime of the stations," he said.

Mercedes also wants to curate a luxury user experience by enabling charging reservations for drivers of its vehicles, said Bill Loewenthal, chief product officer at ChargePoint.

"Mercedes has taken a leadership in this industry," he said. "They're obviously very influential, and it's a privilege to partner with them."

Mercedes and other auto brands have helped charging companies enable roaming, allowing a driver with a ChargePoint app to charge at an EVgo location, for example.

Some chargers are also compatible with automotive brands' mobile apps, eliminating the need for a separate charging network account, said Levy, of EVgo.

The automakers give the charging networks large orders, which helps them expand their footprints. And some automakers share data with charging companies to determine locations and configurations for chargers, Levy said.

GM has shown "that they're willing to lean in with their expertise and their support and really find innovative ways to work together," Levy said. "That's critical to solving challenges."