Image Source: Europa Wire
Siemens AG is putting more than $100 million into Volkswagen AG’s Electrify America division as the first external investor in the North American electric vehicle charging stations network, German industrial giant.
According to the corporations, the Electrify America division would receive a total infusion of $450 million, including fresh capital from its parent Volkswagen. Electrify America’s cooperation with Siemens is “part of a much broader commitment that Siemens is making in the electrification sector,” according to John DeBoer, manager of Siemens’ North American e-mobility division.
In the wake of the diesel emissions cheating scandal involving the German carmaker, Volkswagen formed Electrify America in 2017 with a 10-year, $2 billion investment pledge. The two businesses stated that Siemens’ share is more than $100 million without going into further detail about how much each contributes to the most recent investment.
A minority investor sitting on Electrify America’s board is Siemens, which is investing its financial arm, Siemens Financial Services.
According to a Reuters article from a year ago, Volkswagen planned to sell an interest in Electrify America to raise up to $1 billion in outside money to develop infrastructure for electric vehicle use.
In an interview, Giovanni Palazzo, president and chief executive officer of Electrify America, stated that the firm still intends to increase its charging infrastructure by 2026, including 1,800 charging stations and more than 10,000 fast chargers.
Ford Motor Company, Hyundai/Kia, BMW, Mercedes-Benz, Geely Automobile’s Volvo and Polestar, and Tesla rival Lucid are just a few of the automakers with which Electrify America has EV charging collaborations outside of the Volkswagen Group.
According to the investment website PitchBook, Siemens, which constructs charging stations for fleets of vehicles and other clients, has invested in a number of electrification firms, including ChargePoint and Electrify America rivals Northvolt and WiTricity as well as Swedish battery startup Northvolt.