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

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On April 29, 2024, the Korea Fair Trade Commission approved a business combination in which LG Uplus and Kakao Mobility applied to jointly establish a charge point operator (CPO) for electric vehicle charging stations.

The commission determined that the joint venture would be unlikely to restrict competition in the market. Instead, it expected that the two companies joining forces would spur innovative service competition in the electric vehicle (EV) sector.

The EV charging market is still in its infancy, with no clear market leader having emerged. As major conglomerates are entering the market one after another, competition to take the lead is intensifying. Automakers such as Tesla and Hyundai Motors are also directly providing charging services.

There are a multitude of EV charging companies, yet customer dissatisfaction remains unresolved. Because one-time charging does not allow for sufficiently long driving distances, EVs require more charging stations than gas stations for internal combustion engine vehicles. Confusion is also exacerbated by the fact that each EV model adopts different methods and standards for charging.

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

EV chargers are classified into slow, fast, and ultra-fast types based on charging speed.

Slow chargers utilize the On-Board Charger (OBC) built into electric vehicles. They supply alternating current (AC) power from an external power source, passing it through the slow charger, after which the AC is converted to direct current (DC) within the vehicle's OBC to charge the battery. Charging is supplied at 3–7 kilowatts (kW) and it takes about eight hours for a full charge.

Image source: Korea Institute of Science and Technology Information

The fast charging method converts AC to DC externally using a fast charger installed outside the vehicle, charging the battery directly regardless of the OBC. Fast charging uses 50–200 kW of power, taking about 30–60 minutes, while ultra-fast charging uses 300–350 kW and generally takes around 20 minutes or less.

Slow chargers are mainly installed in residential settings such as homes and apartments. Fast chargers are installed in external locations, including highway rest areas and public institutions. The electricity cost is about 1,100 won for 100 kilometers using a slow charger, and about 2,700 won with a fast charger.

EV chargers can also be classified by installation type: stand-alone, wall-mounted, and portable. The most common is the stand-alone charger, which is individually installed. A wall-mounted charger is installed in a pad form attached to a wall. Portable chargers are devices that drivers can carry and plug into any outlet for use wherever needed.

According to the Ministry of Environment, as of the end of December 2023, a total of 305,309 EV chargers had been installed domestically. Of these, slow chargers account for 270,923 units, or 88.7% of the total. Fast chargers number 34,386, making up 11.3%. The number of chargers distributed increased 6.8 times—from 44,792 in 2019, surpassing 300,000 units in 2023.

Nevertheless, consumers continue to complain of an inadequate charging infrastructure. The government targets an increase in EV chargers to 590,000 units by 2025, 850,000 by 2027, and 1.23 million by 2030.

The domestic charging market is divided into charger manufacturers and charge point operators (CPOs). Typically, manufacturers supply chargers to CPOs, but in some cases, manufacturers install and operate chargers themselves.

Historically, small and medium-sized enterprises led the charging station market, but as the EV market rapidly expanded in recent years, major conglomerates have also entered the market, mainly by mergers and acquisitions (M&As) of existing companies. Many new entrants are oil refiners or information and communications technology (ICT) companies.

The largest EV charging company in Korea is the GS Group, which operates charging stations through GS ChargeV and GS Caltex.

GS Energy launched the GS Connect EV charging brand in July 2022 and further expanded its size by acquiring ChargeV. ChargeV was the first private company to provide EV charging services in Korea. In January 2024, ChargeV was merged into GS Connect and became GS ChargeV. As of January 2024, GS ChargeV reported that it operated 45,000 chargers nationwide, holding a 20% market share. According to government data, its market share as of July 2023 was 16.6%.

The SK Group is engaged in the EV charging business through affiliates such as SK ElecLink, SK Energy, and SK Signet. SK Signet was established as a spin-off from Signet Systems in 2016 (as Signet EV) and was listed on KONEX in 2017. SK acquired a 52.1% stake in Signet in 2021, making it part of the SK Group. Signet began by obtaining Japan's CHAdeMo certification in 2011, and now supplies chargers to Hyundai, Kia, BMW, Ford, Nissan, Volkswagen, and others. Overseas sales accounted for 82% of its revenue in 2022.

SK ElecLink is the new name for SS Charger, a fast charging service provider acquired by SK Networks. In addition, SK E&S acquired EverCharge, a U.S. EV charging company, in 2022. The 'Home & Service' EV charging brand operated by SK Broadband was transferred to ChargeV in March 2024.

The LG Group carries out EV charging business through LG Electronics and LG Uplus. LG Electronics entered the market by acquiring Apple Mango together with GS in 2022, with a 60:40 stake split. Apple Mango changed its name to HiEV Charger in May 2023.

LG Uplus also established a dedicated 'EV Charging Business Unit' at the beginning of 2023 and entered the EV charging business by launching the VoltUP service. It unified services by acquiring Hello Plug-in, LG HelloVision's EV charging service, and is further expanding its business aggressively by forming a joint venture with Kakao Mobility.

The Lotte Group entered the EV charging market in 2022, when Lotte Data Communication acquired EVSIS (formerly Joongang Control). EVSIS, established in 1987, is Korea's first professional charger manufacturer and is considered one of the "Big Three" EV charger manufacturers in Korea alongside SK Signet and CHAEVI (formerly Daeyoung CHAEVI).

Among mid-sized and small companies, Power Cube, Everon, Starcop, Humax EV, Easy Charger, Plug Link, and CHAEVI are competing with conglomerates in the charging station sector.

Over 500 Domestic Charging Operators... Market Set to Grow to 29 Trillion Won by 2030

As of the end of 2023, there were 507 registered EV charging operators in Korea. According to the Korea Smart Grid Association, the number of EV charging operators (net increase) grew from just one in 2018 to 110 in 2019, 180 in 2020, 272 in 2021, and 392 in 2022—a rapid rise. In just two years (2022–2023), 235 new operators were added.

The impetus for this aggressive market entry stems from the perception that the charging station industry is a 'goose that lays golden eggs.' Installation costs for chargers vary greatly depending on whether they are slow or fast chargers, and it's reported that installing a fast charger costs between 40 million and 100 million won per unit.

Korean secondary battery market research firm SNE Research projects that Korea's EV charging infrastructure market will grow at an average annual rate of 36%, from 2.1 trillion won in 2022 to 29.3 trillion won (assuming 1.2 million slow chargers and 2 million fast chargers) by 2030.

Globally, the number of EV chargers is also expected to increase sharply. According to the 'Global EV Outlook 2024' report published by the International Energy Agency (IEA) in April 2024, as of 2023, there are 4 million public charging points worldwide (3 million slow and 1 million fast chargers, based on government targets).

This number is projected to increase by 275%—to 15 million (9 million slow, 6 million fast) by 2030. By 2035, the worldwide number is expected to reach 23 million chargers (14 million slow, 9 million fast). This is about a sixfold increase compared to 2023.

Precedence Research, a global market research firm, forecasts the global EV charging infrastructure market to grow from $45.91 billion (about 62 trillion won) in 2024 to $274.49 billion (about 373 trillion won) by 2033 at an average annual growth rate of 23.13%.

Different Charging Standards for Each Vehicle and Country

One major inconvenience for EV drivers is that charging standards differ for each car model. Unlike internal combustion vehicles, which only distinguish between diesel and gasoline and can refuel at any station, EVs cannot charge if the standards are incompatible. While adapters are available, they add extra cost and inconvenience.

Types of EV 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).

The AC single-phase standard, comprising five pins, is a slow charging standard used in Korea, the US, and Japan. It supplies 7kW (220V/32A) via AC power. AC three-phase, which supports three-phase AC with 7 pins, is widely used in Europe.

Source: Korea Automotive Technology Institute

The DC Combo is a fast charging standard that comes in CCS1 and CCS2 variants. "Combo" refers to the fact that it supports both DC and AC charging. Both slow and fast charging are possible from a single port. CCS stands for "Combined Charging System."

CCS1 connects a DC charging pin to the five-pin AC single-phase structure, used mainly in the United States and South Korea. CCS2, shaped as a seven-pin AC three-phase with an added DC pin, is popular in Europe.

CHAdeMo is a Japanese-centric fast charging standard developed by Tokyo Electric Power Company in 2010. Recently, CHAdeMo's market share has declined due to the rise of DC Combo. China uses its own GB/T standard for charging. Japan and China are jointly developing a new fast-charging standard called Chaoji. Chaoji aims to achieve output above 500 kW and be compatible with CHAdeMo, GB/T, and the DC Combo.

In Korea, manufacturers previously used a mix of CHAdeMo, CCS1, and AC single-phase, but the Korean Agency for Technology and Standards unified the national standard to CCS1 in December 2017. The main reason was that Korea’s key automotive export markets, the United States and Canada, had adopted CCS1.

Although NACS is translated as "North American Charging Standard," it is in fact a charging technology that Tesla developed exclusively for its own EVs in 2012. In November 2022, Tesla opened the technology so that rival companies could also use it, renaming it the NACS.

Comparison of Tesla NACS and CCS1 Connectors. Photo by Tesla

The prevailing interpretation is that Tesla opened up its technology both to expand its market share in charging stations and to target the US government’s subsidies. To support the expansion of EV charging infrastructure, the US government plans to provide $7.5 billion in subsidies over five years beginning in 2022. While the DC Combo (CCS) was the default target standard, subsidies were made available if Tesla opened its charging network.

DC Combo separates fast and slow charging lines at the vehicle, whereas NACS uses the same port for both. NACS is smaller and offers easier charging compared to CCS1 and CCS2. Depending on the version, Tesla Superchargers supporting NACS can charge at up to 150–250 kW.

The number of Tesla Superchargers has increased rapidly thanks to the company’s aggressive expansion. The network exceeded 10,000 units in June 2018 and has grown by around 10,000 per year, surpassing 50,000 units in September 2023. Superchargers account for about 60% of charging stations in the US. In October and November 2022, the number of Superchargers installed in Europe and China also surpassed 10,000, respectively.

After Tesla's announcement of NACS opening, Ford declared in May 2023 that it would adopt NACS, soon followed by GM. Although competitors, they expected to boost their own EV sales by utilizing the Supercharger network.

Ultimately, in June 2023, SAE International announced a plan to standardize NACS, and by December, NACS was recognized as an official charging standard alongside CCS1 in the United States.

Tesla, Unlike Apple... Moving Toward Charging Standard Unification?

Whenever a new technology emerges, companies often find themselves embroiled in a standard war. The competition between VHS (Sony) and Betamax (Matsushita) video formats is still discussed today. The battle over automotive charging standards is ongoing, and a winner has yet to emerge.

In the EV charging standard competition, Tesla has often been compared to Apple. Apple adopted its proprietary Lightning charging port for iPhone 5 in 2012. However, complaints about incompatibility with other IT devices persisted, and eventually, from the iPhone 15 onward, Apple switched to the USB-C type used by Android phones.

Tesla appears to have taken Apple’s experience as a lesson. By opening NACS, Tesla is pushing out CCS1 in the US EV market. As of May 2024, nearly all major automakers—including GM, Ford, Toyota, Rivian, Volvo, Polestar, Nissan, Mercedes-Benz, Jaguar Land Rover, Fisker, Stellantis, Hyundai, Volkswagen, and BMW—have announced plans to adopt NACS.

Tesla Supercharger installed in Korea. Photo by Tesla

These companies plan to equip their new EVs with NACS ports starting in 2025. Until then, they can use the Supercharger network via an adapter called the "Magic Dock." Tesla also announced Magic Dock support for the Korean market in November 2023.

In North America, as NACS gains dominance, CCS1 continues to coexist in the market. Established automakers have announced NACS support but have not capitulated to Tesla.

In July 2023, seven automakers—including Hyundai, BMW, GM, Honda, Kia, Mercedes-Benz, and Stellantis—announced the formation of a joint venture and alliance to build a charging network across North America. The joint venture, named IONNA, was officially launched in February 2024.

IONNA plans to install more than 30,000 EV chargers across North America, supporting both NACS and CCS1 standards. Their strategy appears to be to embrace NACS while still bolstering the CCS1 presence.

The situation outside the United States is more complex. Europe continues to use CCS2, while China mandates its own GB/T standard for all EVs sold domestically. Korea, which initially adopted CCS1 as its national standard in line with North American norms, is now facing a difficult dilemma going forward. Given the sunk cost of existing infrastructure and installations, switching standards will not be easy.

<References>

Korean Agency for Technology and Standards, Announcement of KS amendment for integration of rapid charging systems for electric vehicles, 2017.12.21
Korea Automotive Technology Institute, Trends and Implications of Standardization in Fast Charging for Electric Vehicles, 2023.3.27
Kiwoom Securities Research Center, Electric Vehicle Charging Infrastructure, 2023.4.3
The Dong-A Ilbo, “Capture the 6 Trillion Won EV Charging Market” – Fierce Competition Among LG, GS, SK, and Lotte, 2023.11.6
Tesla, Opening the North American Charging Standard, 2022.11.11
The Korea Economic Daily, [Rapid Growth in EV Charging Infrastructure] Strategies for Revitalizing Fast Charging Infrastructure, 2023.2.21
electrive, Tesla NACS to become an official charging standard in North America, 2023.12.20
SAE International, SAE to standardize Tesla NACS charging connector, 2023.6.27
ETNews, Tesla NACS Emerges as North America's Charging Standard—What's Next for Korea?, 2023.9.13
Hyundai, High-Powered EV Charging Network, IONNA, Begins Operations in North America, 2024.2.10
Korea Fair Trade Commission, Approval of LG Uplus and Kakao Mobility Company Establishment, 2024.4.29
IEA, Global EV Outlook 2024, 2024.4
The Verge, All the news about EV charging in the US, 2024.5.22

This content was produced with the assistance of AI translation services.