Mercedes-Benz AG plans to build a global network of 10,000 ultra-fast chargers in the latest effort by traditional automakers to rival Tesla Inc. as the electric-vehicle leader.
(Bloomberg) — Mercedes-Benz AG plans to build a global network of 10,000 ultra-fast chargers in the latest effort by traditional automakers to rival Tesla Inc. as the electric-vehicle leader.
Mercedes will begin adding the first stations this year in North America and later expand to Europe and China, the company said Thursday. The units will have as much as 350 kilowatts of power, enough to add 20 miles of range per minute. Tesla operates more than 40,000 Superchargers, with its V3 stations usually having as much as 250 kilowatts of power.
“Our customers deserve a compelling charging experience that makes electric vehicle ownership and long-distance travel effortless,” Mercedes Chief Executive Officer Ola Kallenius said. “We won’t take a wait-and-see approach for this to be built.”
The foray ties into Mercedes’s push to spend more than €40 billion ($42.5 billion) to electrify its lineup and by the end of this decade halve its greenhouse gas emissions compared to 2018 levels. The German company may tap aid in the US, where the Biden administration has unveiled $7.5 billion in grants to add 500,000 chargers. Countries in Europe are also pushing to add such infrastructure to aid the shift away from the combustion engine.
Mercedes will build the network with partners including solar power firm MN8 Energy Inc. Stations will be placed near major cities and highways. In the US, the investment will be just over €1 billion over the next six to seven years, Mercedes said, with the carmaker and MN8 splitting the cost. By the end of that period at the latest, the carmaker expects the operation to be profitable.
Mercedes is shifting its focus toward higher-margin vehicles to help pay for its shift to EVs. The company plans to pare back its suite of entry-level cars and channel investment toward premium models like its flagship S-Class sedan and G-Class sport utility vehicle.
Developing its own charging network will support the luxury-first strategy, Mercedes said. While drivers of rival cars will be able to use the chargers, the carmaker’s customers will get preferential access to avoid waiting times.
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