Electrify America charging station
Source: Electrifying America
German industrial giant Siemens AG is investing more than $100 million in Volkswagen AG’s Electrify America unit, becoming the first outside investor in North America’s network of electric vehicle charging stations.
Including new funds from its parent company Volkswagen, the Electrify America unit would receive a total injection of $450 million, the companies said.
The partnership with Electrify America “is part of a much larger investment that Siemens is making in the electrification market,” said John DeBoer, head of Siemens’ North American electric mobility unit.
Electrify America was created by VW in 2017 with a 10-year, $2 billion investment commitment following the German automaker’s diesel emissions cheating scandal.
The two companies did not specify the exact amount each is contributing to the latest investment, other than to say that Siemens’ share is more than $100 million.
Siemens, which is making the investment through the Siemens Financial Services financing arm, will be a minority investor with a seat on the board of Electrify America.
A year ago, Reuters reported that VW intended to sell a stake in Electrify America as the automaker hoped to attract up to $1 billion in outside funding to help develop electric vehicle infrastructure.
In an interview, Giovanni Palazzo, President and CEO of Electrify America, said the company still plans to more than double its charging infrastructure to 1,800 charging stations and more than 10,000 fast chargers by 2026. .
Electrify America has EV charging partnerships with a wide range of vehicle manufacturers outside the Volkswagen Group, including Ford Motor Co, Hyundai/Kia, BMW, Mercedes-Benz, Geely Automobile’s Volvo and Polestar, and rival Tesla , Lucid.
Siemens, which builds charging stations for commercial fleets and other customers, has invested in several electrification companies, including Swedish battery startup Northvolt and wireless charging startup WiTricity, as well as competitor Electrify America ChargePoint, according to investor website PitchBook.