EV market leader Tesla has landed a $US100 million ($A157 million) supply deal with global oil giant bp for the supply of its ultra-fast charging hardware to be used in bp’s network in the US.
The landmark deal was announced by bp on Thursday (US time) and could be a ground-breaking event with major implications for rival hardware suppliers such as Australia’s Tritium, already struggling against negative sentiment from investors and EV drivers.
The Tesla Supercharging network is widely regarded as the best in the world – easy to use, fast, and reliable and accompanied by an excellent app.
The deal with bp to use its 250kW ultra fast hardware – albeit cloaked in bp branding – is the first time it has signed a deal with a third party network provider, let alone one of the world’s biggest oil giants and petrol retailers. And it could presage a seismic shift in the industry.
Tesla already leads the world in the EV market – with more than 50 per cent shares in new car markets such as the US and Australia – although it is coming under pressure to retain that title from China’s BYD.
It has also scored major wins in EV charging protocols, with most of the world’s major car makers now making their charging ports compatible with the Tesla NACS system in the US.
Analysts say that Tesla is in a strong position to also licence its autopilot and FSD software, and may become a provider of hardware and systems and manufacturing protocols for legacy car makers struggling with the switch to electric – underlining the view that Tesla will become more than just a traditional car maker.
In its statement, bp confirmed it is the first time Tesla’s ultra-fast chargers will be purchased for deployment on an independent EV charging network, and said it forms part of its plans to spend up to $1US billion across the US on EV charging stations by 2030.
The oil giant says that from early 2024, Tesla chargers will be installed across the bp pulse network, including at key bp, Amoco, and Thorntons-branded sites, at TravelCenters of America locations and at bp pulse’s large-scale GigahubTM charging sites, near airports and in major metropolitan areas across the US.
They will also be installed at Hertz locations, as part of previously announced collaborations, and at fleet depots. The first sites will be in Houston, Phoenix, Los Angeles, Chicago; and Washington D.C.
“Combined with our vast network of convenience and mobility sites on and off the highway, this collaboration with Tesla will bring fast and reliable charging to EV drivers when and where they need it,” said Richard Bartlett, the global CEO of bp.
“Strengthening the bp pulse network with Tesla’s industry-leading hardware is a major step forward in our ambitions for high speed, open access charging infrastructure in the US and advances our ambition to delivering an exceptional customer experience.
“By pairing bp pulse’s industry-leading, intelligent charge management software, Omega, with Tesla’s fast and reliable chargers, bp pulse gains the distinctive capability to oversee the entire charging process for EV fleets, providing a comprehensive solution for its fleet customers.”
The Tesla ultra-fast chargers, which have an output of 250 kW, but will be branded, installed and operated by bp pulse. The chargers will be fitted with Tesla’s ‘Magic Dock’, which is compatible with both North American Charging Standard (NACS) and Combined Charging System (CCS) connectors.
This enables EVs from other major vehicle manufacturers to use the Tesla chargers on the bp pulse’s network, regardless of whether they use CCS or NACS ports.
To further improve user experience, the Tesla chargers will support use of the Plug and Charge protocol, which simplifies and automates payments.
As is Tesla’s current policy, third-party operated ultra-fast chargers meeting Tesla’s reliability and functionality requirements are featured in Tesla’s vehicle UI and apps, and bp pulse expects to uphold those requirements on its network.
Rebecca Tinucci, the head of charging infrastructure at Tesla said the move was a “new step” for the company, and “one we’re looking to expand in support of our mission to accelerate the world’s transition to sustainable energy.”
Giles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Grid web sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.