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LAS VEGAS – Mercedes-Benz said Thursday that it would install a network of 2,500 high-powered chargers in North America by 2027 to compete with Tesla.

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The German luxury automaker said at the CES gadget show in Las Vegas that it will begin to build the North American network this year at a total cost of just over $1.05 billion, The New York Times reported. When completed, the network will have 400 charging stations with more than 2,500 high-power plugs, according to The Wall Street Journal.

Mercedes-Benz’s proposed network will be about one-third as large as Tesla’s when it is completed, according to the Times.

Electrify America has 3,400 fast chargers at 790 locations in the U.S., the newspaper reported.

“This is a strategic decision to put our money where our mouth is,” Ola Källenius, the CEO of Mercedes-Benz, told reporters on Thursday.

The cost for the build-out in North America will be split between Mercedes-Benz and its partner in the project, MN8 Energy, according to The Wall Street Journal. MN8 is a U.S.-based renewable energy and battery-storage operator.

Each Mercedes-Benz station will have four to 12 ports with up to 350 kilowatts of charging power, according to The Associated Press.

“This is one of the building blocks that will perhaps persuade even more customers to jump into the EV side of the Mercedes-Benz,” Källenius said, according to The Wall Street Journal.

The charging hubs will be built in key cities and population centers close to major roads and businesses, according to the AP. The hubs will have surveillance cameras for security, according to the Times.

“We know where our customers are in North America, we know where we’re selling electric vehicles,” Markus Schäfer, Mercedes’ chief technology officer, told reporters.

Mercedes-Benz plans to invest more than $42.1 billion between now and 2030 in battery-electric vehicles, The Wall Street Journal reported. Beginning in 2025, the company’s newly launched vehicle platforms will be electric only.