German automaker Volkswagen is partnering with fellow German multinational Siemens AG to invest $US450 million into Electrify America, Volkswagen’s US-based EV charging business.
Volkswagen is selling a small minority stake in Electrify America to Siemens and together the two companies will invest a total of $US450 million, valuing Electrify America at $US2.45 billion.
Siemens will pay at $US100 million for its minority stake – the two companies did not provide any additional details – and becomes the first external investor in the US charging business as well as an important strategic technology partner.
At the heart of this new investment, however, is a plan to more than double Electrify America’s charging infrastructure.
“With our additional investment in Electrify America, we are giving e-mobility in North America a further boost and consistently grow our charging and energy business,” said Thomas Schmall, Volkswagen Group board member for technology and CEO of Volkswagen Group Components.
“The plan is to more than double Electrify America’s charging infrastructure to 1,800 locations and 10,000 fast chargers by 2026.
“Siemens’ investment confirms our electrification strategy of making charging and energy solutions available nationwide – to customers of all EVs. With its expertise and portfolio, Siemens is an important strategic technology partner for us on this route.”
“Representing one of Siemens’ largest investments in electrified transportation, this strategic partnership with Electrify America aims to grow a collaborative ecosystem that propels EV adoption across the United States and Canada,” said Veronika Bienert, CEO of Siemens Financial Services.
“Our unique ability to combine financial and technology know-how helps to fulfill Siemens’ commitment to decarbonize key industries, accelerate the shift to sustainable mobility, and do so in a way that’s accessible for all.”
Founded in 2016, Electrify America is focusing primarily on expanding charging infrastructure throughout California, with $US800 million invested in the state and $US1.2 billion invested across the remainder of the United States.
As of the end of 2021, the Electrify America network consisted of 799 ultra-fast charging stations across the country, including 214 in California, with over 90 also boasting energy storage systems.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.