[Complete Battery Mastery](38) Electric Cars Like USB? ... Will Tesla Standardize Complex Charging?

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On April 29th, the Korea Fair Trade Commission approved the merger application for the joint venture between LG Uplus and Kakao Mobility to operate electric vehicle charging station businesses (CPO).

The Fair Trade Commission judged that even if the two companies establish a joint venture, the possibility of restricting market competition is low. Instead, it is expected that by joining forces, the two companies will promote innovative service competition in the electric vehicle market.

The electric vehicle charging market is still in its early stages, and no clear leading company has emerged. As large corporations continue to enter the market, the competition for market dominance is fierce. Automakers such as Tesla and Hyundai Motor Company also provide charging services directly.

Electric vehicle charging providers are proliferating, but consumer complaints remain unresolved. Since the driving range per single charge is still insufficient, electric vehicles require more charging stations than gas stations for internal combustion engine vehicles. The adoption of different methods and standards for each electric vehicle also adds to the confusion.

GS, SK, LG, Lotte... Major Corporations Enter the Charging Market One After Another

Electric vehicle chargers are classified into slow, fast, and ultra-fast chargers based on charging speed.

Slow chargers use the On-Board Charger (OBC) built into the electric vehicle. They supply alternating current (AC) power from an external source through the slow charger, which is then converted to direct current (DC) inside the vehicle's OBC to charge the battery. They provide power of 3 to 7 kilowatts (kW) and take about 8 hours for a full charge.

Image source: Korea Institute of Science and Technology Information

Fast charging bypasses the OBC and directly charges the battery by converting AC to DC at a fast charger installed outside the vehicle. Fast charging uses 50 to 200 kW of power and takes about 30 to 60 minutes. Ultra-fast charging uses 300 to 350 kW and takes around 20 minutes.

Slow chargers are mainly installed in residential facilities such as houses and apartments. Fast chargers are installed in external locations such as highway rest areas and public institutions. Electricity costs are approximately 1,100 KRW per 100 km for slow charging and about 2,700 KRW for fast charging.

Electric vehicle chargers can also be categorized by installation type into stand-alone, wall-mounted, and portable chargers. The most common stand-alone type refers to chargers installed independently. Wall-mounted chargers are pad-shaped and attached to walls. Portable chargers are carried by drivers and can be plugged into any outlet for use.

According to the Ministry of Environment, as of the end of December 2023, the total number of chargers deployed domestically was 305,309 units. Among these, slow chargers accounted for 279,230 units, representing 88.7% of the total. Fast chargers numbered 34,386 units, or 11.3%. Charger deployment increased 6.8 times from 44,792 units in 2019 to over 300,000 units in 2023.

However, consumers still complain about insufficient charging infrastructure. The government aims to expand the number of electric vehicle chargers to 590,000 units by 2025, 850,000 units by 2027, and 1.23 million units by 2030.

The domestic charger market can be divided into charger manufacturers and Charge Point Operators (CPOs). Typically, charger manufacturers supply chargers to CPOs, but in some cases, manufacturers directly install and operate chargers.

The charging station market was once led by small and medium-sized enterprises, but as the electric vehicle market rapidly expanded, large corporations have entered the market in recent years, mainly through mergers and acquisitions (M&A). Many new entrants are oil companies or information and communication-related firms.

The largest electric vehicle charging company in Korea is the GS Group. GS Group operates charging stations through GS ChargeV and GS Caltex.

GS Energy launched the electric vehicle charging brand GS Connect in July 2022 and expanded its scale by acquiring ChargeV. ChargeV was the first private company in Korea to provide electric vehicle charging services. In January 2024, ChargeV merged with GS Connect to become GS ChargeV. As of January 2024, GS ChargeV operates 45,000 chargers nationwide, claiming a 20% market share. According to government data as of July 2023, its market share was 16.6%.

SK Group operates its electric vehicle charging business through affiliates such as SK E-Link, SK Energy, and SK Signet. SK Signet was established in 2016 as a spin-off from Signet System (Signet EV) and was listed on KONEX in 2017. In 2021, SK acquired 52.1% of Signet's shares, incorporating it into the SK Group. Since 2011, it has supplied chargers certified by Japan's CHAdeMO to automakers including Hyundai, Kia, BMW, Ford, Nissan, and Volkswagen. Its overseas sales ratio (82% as of 2022) is higher than domestic sales.

SK E-Link is the renamed fast charging service provider SS Charger, acquired by SK Networks. Additionally, SK E&S acquired the U.S. electric vehicle charging company EverCharge in 2022. SK Broadband's electric vehicle charging brand 'Home & Service' was transferred to ChargeV in March 2024.

LG Group is developing its electric vehicle charging business through LG Electronics and LG Uplus. LG Electronics entered the electric vehicle charging market in 2022 by acquiring Apple Mango together with GS, with a share ratio of 60:40. Apple Mango was renamed HiEV Charger in May 2023.

LG Uplus also established a dedicated 'EV Charging Business Unit' in early 2023 and launched the electric vehicle charging service 'VoltUP,' entering the electric vehicle charging business. It unified services by acquiring LG HelloVision's electric vehicle charging service 'Hello Plug-in' and is aggressively expanding its business by establishing a joint venture with Kakao Mobility.

Lotte Group entered the electric vehicle charging market in 2022 when Lotte Information & Communication acquired EVSIS (formerly Jungang Control). EVSIS, established in 1987, is Korea's first specialized charger manufacturer and is considered one of the 'Big 3' domestic electric vehicle charger manufacturers alongside SK Signet and CHAEVI (formerly Daeyoung CHAEVI).

Other medium and small enterprises such as PowerCube, Everon, Starcop, Humax EV, Easy Charger, Pluglink, and CHAEVI compete with large corporations in operating charging station businesses.

Domestic Charging Operators Surpass 500... Market to Grow to 29 Trillion KRW by 2030

The number of registered electric vehicle charging operators in Korea increased to 507 by the end of 2023. According to the Korea Smart Grid Association, the number of electric vehicle charging operators (net increase) was 1 in 2018, 110 in 2019, 180 in 2020, 272 in 2021, and 392 in 2022, showing rapid growth. A total of 235 new operators were added over two years from 2022 to 2023.

Companies are actively entering the market because the charging station market is perceived as a golden goose. Installation costs vary greatly depending on whether the charger is slow or fast, with fast charger installation costs reportedly ranging from 40 million to 100 million KRW per unit.

SNE Research, a domestic secondary battery market research firm, forecasts that Korea's electric vehicle charging infrastructure market will grow from 2.1 trillion KRW in 2022 at an average annual growth rate of 36%, reaching 29.3 trillion KRW by 2030 (based on 1.2 million slow chargers and 2 million fast chargers).

Globally, electric vehicle chargers are also expected to increase significantly. According to the International Energy Agency (IEA) report 'Global EV Outlook 2024' published in April 2024, there were currently 4 million public electric vehicle chargers worldwide (3 million slow chargers and 1 million fast chargers, based on government targets).

This number is expected to increase by 275% to 15 million chargers (9 million slow and 15 million fast) by 2030. By 2035, it is projected to expand to 23 million chargers (14 million slow and 9 million fast), approximately six times the 2023 figure.

Global market research firm Precedence Research forecasts that the global electric vehicle charging infrastructure market size will grow from $45.91 billion (about 62 trillion KRW) this year at an average annual growth rate of 23.13%, reaching $274.49 billion (about 373 trillion KRW) by 2033.

Different Charging Standards by Vehicle and Country

One inconvenience electric vehicle drivers face is that charging standards differ by vehicle. Unlike internal combustion engine vehicles, which only distinguish between diesel and gasoline and can refuel at any gas station, electric vehicles cannot charge immediately if the standards differ. Although adapters can be used, they incur additional costs and inconvenience.

Electric vehicle charger standards include AC single-phase (5-pin), AC three-phase (7-pin), CHAdeMO, DC Combo (Combined Charging System-1 and 2), GB/T, and NACS (North American Charging Standard).

AC single-phase consists of 5 pins and is a slow charging standard used in Korea, the U.S., Japan, and others. It uses AC power to charge at 7 kW (220V/32A). AC three-phase supports three-phase AC with 7 pins and is widely used in Europe.

Source: Korea Automotive Technology Institute

DC Combo is a fast charging standard divided into CCS1 and CCS2. The name 'Combo' refers to supporting both DC and AC simultaneously. It allows both slow and fast charging through a single charging port. CCS stands for Combined Charging System.

CCS1 has a structure where a DC connector is attached to a 5-pin AC single-phase connector and is mainly used in the U.S. and Korea. CCS2 has a DC connector attached to a 7-pin AC three-phase connector and is widely used in Europe.

CHAdeMO is a Japan-centered fast charging standard developed by Tokyo Electric Power Company in 2010. Recently, its market share has declined due to competition from DC Combo. China adopts its own charging standard, GB/T. Japan and China are jointly developing a new fast charging standard called Chaoji, aiming to achieve high output over 500 kW and compatibility with CHAdeMO, GB/T, and DC Combo.

Korea used a mix of CHAdeMO, CCS1, and AC single-phase depending on manufacturers, but the National Institute of Technology and Standards unified the standard to CCS1 in December 2017. This was mainly because major export countries for Korean automakers, such as the U.S. and Canada, adopted CCS1.

NACS, translated as North American Charging Standard, is actually a charging technology developed exclusively by Tesla for its electric vehicles in 2012. Tesla opened this technology to competitors in November 2022 and named it NACS.

Comparison of Tesla NACS and CCS1 Connectors. Photo by Tesla

Tesla's opening of its technology is widely interpreted as aiming to expand its market share in charging while targeting subsidies provided by the U.S. government. The U.S. government plans to support $7.5 billion over five years from 2022 to expand electric vehicle charging stations. Initially, the DC Combo standard was the main target, but subsidies can be provided if Tesla opens its chargers.

While DC Combo separates fast and slow charging lines in vehicles, NACS uses shared lines for both. NACS chargers are smaller and simpler to use compared to CCS1 and CCS2. Tesla chargers (Superchargers) supporting NACS can charge at up to 150 kW to 250 kW depending on the version.

The number of Superchargers has rapidly increased thanks to Tesla's aggressive moves. After surpassing 10,000 units in June 2018, the number increased by about 10,000 units annually, exceeding 50,000 units in September 2023. Superchargers account for about 60% of chargers in the U.S. In October and November 2022, installations in Europe and China each surpassed 10,000 units.

After Tesla announced the opening of NACS, Ford announced in May 2023 that it would adopt NACS, followed soon by GM. Although competitors, they expect to expand their electric vehicle sales by using Superchargers.

Ultimately, SAE International announced plans to standardize NACS in June 2023, and in December of the same year, NACS was recognized as an official charging standard in the U.S. alongside CCS1.

Tesla Different from Apple... Will Charging Standards Be Unified?

Whenever new technologies emerge, companies often engage in standard wars. The battle between VHS (Sony) and Betamax (Matsushita) video formats is still talked about. The standard war over electric vehicle charging standards is ongoing, with no clear winner yet.

Tesla is often compared to Apple in the electric vehicle charging standard battle. Apple adopted its proprietary charging method, Lightning, starting with the iPhone 5 in 2012. However, complaints about poor compatibility with other IT devices persisted, and Apple finally adopted USB-C, like Android phones, starting with the iPhone 15.

Tesla seems to have taken Apple as a cautionary example. As a result of opening NACS, it is displacing CCS1 in the U.S. electric vehicle market. As of May 2024, automakers that have announced adoption of NACS include GM, Ford, Toyota, Rivian, Volvo, Polestar, Nissan, Mercedes-Benz, Jaguar Land Rover, Fisker, Stellantis, Hyundai Motor Company, Volkswagen, and BMW, among others.

Tesla Supercharger installed in Korea. Photo by Tesla

These companies plan to apply the NACS standard to electric vehicles launched around 2025. Until then, they can use Superchargers via an adapter called a magic dock. Tesla announced in November 2023 that it would support the magic dock in the Korean market as well.

In the North American charging market, NACS is gaining dominance while coexisting with CCS1. Existing automakers have announced support for NACS but have not surrendered to Tesla.

Seven companies, including Hyundai Motor Company, BMW, GM, Honda, Kia, Mercedes-Benz, and Stellantis, announced in July 2023 the formation of a 'Charging Alliance' to build a charging network across North America and establish a joint venture. The joint venture, IONNA, officially launched in February 2024.

IONNA plans to install more than 30,000 electric vehicle chargers across North America, supporting both NACS and CCS1. This strategy appears to embrace NACS while continuing to strengthen the position of CCS1.

The situation outside the U.S. is also complex. Europe still adheres to CCS2. China mandates that all electric vehicles sold domestically use only its own charging standard, GB/T. Korea, which initially adopted CCS1 following the North American standard, is expected to face deeper dilemmas. Considering the sunk costs of existing infrastructure installation, changing standards will not be easy.

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Korea Automotive Technology Institute, Trends and Implications of Electric Vehicle Fast Charging Standardization, 2023.3.27
Kiwoom Securities Research Center, Electric Vehicle Charging Infrastructure, 2023.4.3
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Tesla, Opening the North American Charging Standard, 2022.11.11
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