Mercedes-Benz Plans to Install Its Own Network of EV Chargers

The Mercedes-Benz-branded network would allow the car company’s own customers to pre-book a charging space from their car, but it will also be open to drivers of rival brands with compatible technology.

By 2027, its network in North America is expected to total more than 400 hubs, providing 2,500 EV chargers.

Mercedes-Benz says the build out in North America is projected to cost about $1.05 billion, a figure that will be split with its partner on the project, MN8 Energy, a U.S.-based renewable energy and battery-storage operator.

Executives declined to provide an exact investment figure globally for the project, only saying that it would be a low single-digit number in the billions of euros.

“This is one of the building blocks that will perhaps persuade even more customers to jump into the EV side of the Mercedes-Benz,” Chief Executive

Ola Källenius

said Thursday.

Mercedes-Benz plans to invest more than $42.1 billion between 2022 and 2030 in battery-electric vehicles. Beginning in 2025, all newly launched vehicle platforms will be electric only, and it isn’t planning to develop gas-powered models beyond 2030. 

The planned charging-network rollout highlights a key challenge many car companies face as they bet their futures on EVs: to convince skeptical consumers to buy a battery-powered vehicle, they will need to know they can easily find a place to recharge their car in public. 

With the exception of Tesla, auto executives have historically been hesitant about getting too involved with the build out of the EV charging infrastructure, opting instead to join with outside vendors on such efforts, rather than install chargers themselves.

Still, Tesla’s Supercharger network, which includes about 16,000 charging locations in the U.S., is often cited by customers as a reason they bought a Tesla.  

Aside from Tesla, the expansion of the public charging network has been slow going and complicated. The Inflation Reduction Act passed last year offered federal tax credits to persuade businesses to add more chargers, and the Biden administration has set a goal to have 500,000 charging ports in place to service EVs by 2030.

But the equipment has been hindered by spotty reliability, and some rural states have raised concerns that stations could operate at a loss for a decade or more. 

An influx of new fast charging stations is needed, industry experts say. If the industry aimed to sell only EVs by 2035, the U.S. would need to have an estimated 495,000 public and workplace charging ports, according to an analysis by research group Atlas Public Policy.

As of April last year, there were approximately 89,000 charging outlets in the U.S., according to federal regulators. About 9,800 of the outlets provided fast charging, the Federal Highway Administration said in a report last year, which can typically repower a car in 20 minutes to one hour. 

More recently, some car companies have stepped up their own efforts to expand the number of public-charging locations.

General Motors Co.

in 2021 partnered with EVgo, Inc., a publicly-traded EV-charger company, and plans to install more than 2,700 fast-charging stations for customers by the end of 2025.

Mercedes-Benz said that depending on the region and location, each of its U.S. charging hubs could offer anywhere from four to 30 ports. The time it takes to fully recharge will vary based on the vehicle, a Mercedes-Benz spokeswoman said.

For example, Mercedes-Benz’s high-end EQS SUV would be able to recharge in roughly 30 minutes, the spokeswoman said. 

Mercedes-Benz said it is creating a joint-venture with MN8 Energy to own and operate the charging network.

ChargePoint Holdings Inc.,

CHPT -2.03%

one of the U.S.’s largest operators of EV charging stations, will help design the network and supply the hardware, Mercedes-Benz said.

Separately, Mercedes-Benz on Thursday recalled about 324,000 older-model SUVs due to risks of the engine stalling while driving.

The recall covers a range of SUV models, including versions of the GLE, from the 2012 to 2020 model years. Mercedes-Benz said it isn’t aware of any injuries or crashes related to the defect.

Write to Ryan Felton at [email protected]