Business Desk
Jul 18, 2024
Mercedes Benz and Starbucks have struck a deal to install numerous fast electric vehicle chargers across 100 Starbucks locations along Interstate 5, which runs on the west coast between Canada and Mexico.
This initiative is part of the German manufacturer's $4 billion scheme to create a network of 2,000 EV charging stations worldwide. The first station has already been set up and features a fresh waiting area and 400KW fast charging, courtesy of ChargePoint.
In this phase of its expansion, Mercedes Benz has teamed up with Starbucks to create similar hubs along the I-5 corridor. In a joint statement, the partners announced they "share an ambition to identify additional opportunities in key markets, including core urban areas, charging deserts, and other critical travel corridors."
Starbucks is not covering the costs but will provide the parking spaces. Mercedes won't shoulder the entire $1 billion price tag either, as 50% will be shared by MN8 Energy, a subsidiary of Goldman Sachs Asset Management.
Read more: Tesla resurrects Model 3 with a fresh look
This move comes at a time when other retailers are reconsidering their EV plans amid a slumped growth cycle. Mercedes itself backtracked on an earlier promise to halt gas-powered vehicle production after 2030.
One of the biggest roadblocks to expansion is the lack of space needed for the equipment. Setting up EV charging stations requires willing partners and significant space for DC fast chargers and other essential electronics like transformers and load centres, which are stored in weatherproof cabinets.
Refuelling gas-powered vehicles takes less than five minutes, while charging an EV can take about an hour, depending on charging speeds and battery size. This is why Mercedes selected Starbucks, acknowledging that consumers would prefer to relax in a coffee shop rather than wait in their car.
Volkswagen, another prominent automobile giant that owns the EV charging station company Electrify America, installs most of its stations in big-box retail locations like Walmart.
Back in 2016, Tesla submitted plans to construct a 62-charging station-wide supercharging station in Santa Monica, though it has yet to be realised.
Mercedes isn’t the first to partner with the coffee retailer. In 2022, Volvo teamed up to install 15 charging stations along highways connecting Seattle and Denver.
