Yes, Automakers Stand To Benefit From Installing Public EV Charging Stations
Transitioning the U.S. to electric vehicles (EVs) is a massive undertaking. It requires a big-picture perspective on every piece of the puzzle that needs to be in place for it to work. At the outset of this transition, many automakers were guilty of narrowly focusing on their own EV development at the expense of considering the broader infrastructure upgrades that would be needed. That’s how Tesla charged to a massive head start — simply by putting as much effort and resources into building its charging network as it did into making its cars.
However, as public demand and government policies align to create new levels of pressure on automakers and other players in the EV industry to accelerate the transition, many vehicle manufacturers are seeing the need to approach the problem more broadly. These companies are realizing the importance of a robust — and open — EV charging infrastructure to support their new electric vehicles.
The Coming Demand for Open, Accessible Charging
At the end of 2020, there were roughly 1.4 million plug-in electric vehicles on U.S. roads. According to the Edison Electric Institute, that number will jump to 18 million by 2030. That translates to a 12-fold increase in charging demand over the next decade.
Looking at it another way, a recent PWC study forecasted that the U.S. will need as many as 235,000 fast EV chargers to meet demand — up from about 47,000 chargers that are available today. Not only that, but with more EV models from various car makers planned over the next 10 years, those chargers need to be open and accessible to everyone.
If auto manufacturers expect demand for their new EV models to grow, they can’t simply follow the Tesla model of creating their own private, insulated charging networks. They must work together with EV charging companies to create a vast network of charging stations that consumers feel confident can support their switch to electric.
The Benefits of Installing Public EV Charging Stations
Creating an extensive, open network of charging stations brings benefits to EV consumers and the businesses that want to support them. Those benefits, in turn, boost automakers’ efforts to rapidly expand their EV offerings.
Bolster Consumer Confidence
Open, public networks are built on the standards of interoperability put forward by the Open Charge Point Protocol (OCPP). This internationally recognized initiative is designed to support the creation of EV charging software that can communicate across different vendors and platforms.
The more that open networks are available, the lower the barrier to entry is for consumers who are on the fence about going electric. Range anxiety — the fear that they won’t be able to find a charging station within driving range when they need it — is still one of the top concerns preventing EV adoption among consumers.
Adding more Tesla stations or other private networks does little to address this concern, as this only helps if you buy one type of vehicle. Installing public, open EV charging stations makes widespread adoption possible.
Support Business Confidence
Businesses are one of the most important players in building a broad national EV charging infrastructure. Many of the EV charging stations being built around the country are going in at business properties of all sizes.
Closed charging networks also present a barrier to business adoption. If business owners must commit to one specific, proprietary system and software, they may be more reluctant to install charging stations on their property. Will it work for all their employees? What if the system proves ineffective and they can’t switch to a different one?
Open networks avoid this problem and support business-owner confidence that their investment in EV charging will be worthwhile and sustainable in the long run.
Automakers Are Wising Up
If recent developments are any indication, it seems that automakers are rapidly realizing this need. General Motors recently signed agreements with seven different third-party charging-station providers, including EV Connect, to guarantee charging access for its vehicles anywhere in the country. Mercedes-Benz, Nissan, Porsche and BMW have similar initiatives.
In Europe, BMW, Ford, Volkswagen and Daimler are even working together to build a network of 400 fast-charging stations. If that works, drivers of any of these cars could use that network without the need to sign up for several different third-party services.
That represents the most promising approach to the problem. The more that automakers can work together to simplify charging-station access for consumers, the easier adoption will be for everyone.
Go Beyond Tesla
Tesla had an early advantage in the EV game, but there are signs that other automakers and EV charging-station providers are learning what it takes to catch up. Open, reliable and widespread network access isn’t an afterthought in the transition to electric vehicles — it’s the foundation to make it possible.
Whether you’re an auto manufacturer or a business owner looking for the right EV charging partner, EV Connect can help. Our hardware and software are built around open-standard protocols like the OCPP. Contact us today to see how we can help you take the next steps in your EV initiatives.
Luke Daugherty is a freelance writer, editor and former operations manager based in St. Louis. His work covers operations, marketing, sustainable business and personal finance, as well as many of his personal passions, including coffee, music and social issues
Sources
Harvard Business Review - How Tesla’s Charging Stations Left Other Manufacturers in the Dust
USA Facts - How many electric cars are on the road in the United States?
Edison Electric Institute - More Than 1 Million EVs Are On U.S. Roads Today
PWC - Electric vehicles and the charging infrastructure: a new mindset?
Tech Crunch - GM partners with 7 charging networks ahead of electric vehicle push
Automotive News - Automakers turn to third parties to set up EV charging networks