Siemens joins Electrify America to expand the company’s ultra-fast charging lead in North America. They jointly invested $450 million in the VW subsidiary. Electrify America plans to use the cash — Siemens is the first outside investor — to push said expansion forward, but also expects technological advances.
According to Volkswagen and Siemens, the capital injection brings Electrify America’s post-money valuation to $2.45 billion (€2.31 billion). The announcement did not reveal Siemens’ future stake in Electrify America. Siemens Financial Services (SFS) said it was a “low triple-digit one million investment“, giving Siemens a minority stake and a seat on the board. The rest of the 450 million dollars (425 million euros) comes from VW.
The investment is also part of a “strategic partnership”. On the one hand, the capital is to help Electrify America accelerate its growth plans and “achieve technological advances in charging and energy solutions for public, private and commercial offerings.” Second, Siemens’ investment reaffirms the company’s commitment to future collaboration between Siemens and Electrify America on technologies and services to drive the expansion of reliable, high-quality charging solutions, VW said. As a full-service provider of eMobility charging infrastructure, Siemens eMobility offers the full range of AC and DC charging hardware, software and services – from residential to commercial applications to depots. The company also recently expanded its operations in the United States with plans to manufacture one million electric vehicle chargers in America by 2025.
Siemens has become the first outside investor in Electrify America and an “important strategic technology partner”, according to Volkswagen. Reports that VW was seeking co-investors for its North American HPC network surfaced a year ago. Although the exact amount of Siemens’ investment is not known, it is significantly lower than what Reuters had indicated in the July 2021 report. At the time, we were talking about around a billion dollars.
According to Thomas Schmall, VW Group board member for technology and CEO of Volkswagen Group Components, the group intends to use the $450 million, which will come in part from its funds, to “give a new momentum for electric mobility in North America” and “steady growth” in the charging and energy sector. “The plan is to more than double Electrify America’s charging infrastructure to 1,800 locations and 10,000 fast chargers by 2026,” Schmall said. “Siemens’ investment confirms our electrification strategy of making charging and energy solutions available nationwide – for all electric vehicle customers. ”
For SFS, this is one of the most important investments in e-mobility. “Our unique ability to combine financial and technological know-how helps fulfill Siemens’ commitment to decarbonize key industries, accelerate the shift to sustainable mobility and do so in a way that is accessible to everyone,” said Veronika Bienert, CEO of Siemens Financial. Services.
Volkswagen created Electrify America in 2017 following court rulings in the United States that found the company guilty of cheating in emissions testing of its diesel vehicles. VW has been ordered to spend two billion dollars over ten years to install 2,000 charging stations in 500 locations. At present, Electrify America claims to have already installed 800 hubs hosting 3,500 super-fast chargers. Initially a form of takeover, the network proved to be a commercial success for the manufacturer’s subsidiary, which massively increased the coverage of HPC sites. In 2021, Electrify America recorded 1.45 million EV charging sessions, more than five times more than the previous year with more than 268,000 EV charging.
In its NEW AUTO strategy, globally, Volkswagen aims to install around 45,000 high-power charging stations in Europe, China and the United States together with partners.