Ikea Australia to Invest $4.5 Million for Additional EV Chargers in 10 of Its Retail Locations

Ikea is reportedly investing roughly $4.5 million to install additional electric vehicle (EV) charging stations in 10 of its retail locations in Australia.

According to an Ikea Australia representative, the charging stations would be set up in the Adelaide, Canberra, and Perth areas and at its retail stores in Richmond and Springvale in Victoria.

The charging station initiative will include three Ikea stores in Tempe, Rhodes, and Marsden Park in New South Wales, in addition to the two Swedish furniture giants' Queensland stores in North Lakes and Logan.

Ikea Australia announced it is now in the process of constructing a charging station at its Central Distribution Center in Sydney, which will have the capacity to charge up to 28 EVs. However, none of the sites are accessible to the general public and will only be utilized by the brand's delivery drivers.

According to Ikea, the proposed units combine AC chargers with 20kW and 22kW output for "overnight charging" with faster 75kW and 150kW DC plugs. The furniture company noted that Jet Charge will handle the EV charging project, which is expected to be completed "by the end of 2024."

Ikea's EV Investment Alongside NVES

According to IKEA, as of May 2024, 40% of customer deliveries were made by cars with zero tailpipe emissions. Ikea Australia's EV charger investment comes as the nation's "New Vehicle Efficiency Standard" (NVES) is set to take effect in 2025.

Apart from mandating automakers to produce fuel-efficient cars, Australia's NVES seeks to reduce greenhouse gas emissions to a level equivalent to the CO2 emissions of a small country.

Additionally, it ensures that more fuel-efficient vehicles, be they diesel, petrol, hybrid, or electric, will be available for locals to use for business and pleasure.

Volkswagen Plug-in Hybrid Electric Vehicles in Australia

Electric vehicles in Australia continue to increase due to the nation's NVES. Thus, Volkswagen Australia was reportedly looking to produce more plug-in hybrid electric vehicle (PHEV) models in the country due to NVES.

This is despite the German carmaker's previous indication that it would rather prepare for the current spike in EV sales than continue to offer plug-in hybrid power on more than just the new Touareg R in Australia, which is its first PHEV locally.

However, Ralph Beckmann, the marketing manager for Volkswagen passenger vehicles, said the NVES has compelled the company to reevaluate its stance on PHEVs and has made it easier to secure the manufacturing of these vehicles from the European plant.

VW Australia has previously said it needed to be in a stronger position to properly ask its German parent company for newer, more efficient powertrain options.

According to reports, VW Australia will have more influence in negotiations to expand the range of PHEV options available in the local market because of the upcoming NVES, which will impose average CO2 emissions targets on all brands beginning next year.