VW, Siemens invest in Electrify America EV ultra-fast charging network in North America
The Volkswagen Group and Siemens are investing $450 million to support the ambitious growth plans of Electrify America, LLC - the largest public ultra-fast charging network for electric vehicles from all vendors in North America.
With this, the American EV infra firm is valued at $2.45 billion. Through its financing arm Siemens Financial Services (SFS), Siemens becomes a minority shareholder in Electrify America with a low triple-digit million USD investment and will hold a seat on the board.
Electrify America is a subsidiary of Volkswagen Group of America. It was established in 2016 by the German automaker as part of its efforts to offset emissions in the wake of the Volkswagen emissions scandal. The network currently has about 2,500 charging units in the US.
With Siemens, Electrify America receive its first external investor as well as an important strategic technology partner. In line with Volkswagen's 'New Auto' strategy, this step is said to support the expansion of the public charging infrastructure in the U.S. and Canada.
Speaking on the development, Thomas Schmall, Volkswagen Group Board Member for Technology and CEO of Volkswagen Group Components said, "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".
"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", he added.
"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, 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", she added.
Further, as a part of the strategic partnership, Siemens eMobility, a full-service provider of e-Mobility charging infrastructure, will offer the full spectrum of state-of-the-art AC and DC charging hardware, software and services - from residential to commercial to depot applications – to Electrify America.
With its 'New Auto' strategy, the VW is investing in the development of an open fast-charging network worldwide. By 2025, around 45,000 High Power Charging (HPC) points are planned in Europe, China and the USA together with partners.
The product range also includes the entire range of charging solutions for private customers and companies – from the company's own wallbox and flexible fast charging station to charging services and innovative, smart green electricity tariffs.
In the next step, Volkswagen has claimed to anchor the electric car as a mobile power bank in the energy system creating additional added value for e-car customers.