German industrial giant Siemens invests more than $100 million in Volkswagen Group‘s Electrify America unit, becoming the first outside investor in the North American network of electric vehicle charging stations.
Including new funds from parent company Volkswagen, the Electrify America unit would receive a total injection of $450 million, the companies said in a statement dated Tuesday†
The partnership in Electrify America is “part of a much larger investment Siemens is making in the electrification market,” said John DeBoer, head of Siemens’ North American e-mobility unit.
Electrify America was founded in 2017 by VW with a 10-year investment commitment of $2 billion in the wake of the German automaker’s diesel emissions scandal.
The two companies have not specified the exact amount each will contribute to the latest investment, except that Siemens’ share is more than $100 million.
Siemens, which is making the investment through its financing arm Siemens Financial Services, will be a minority investor with a seat on the board of directors of Electrify America.
A year ago, Reuters reported that VW was planning to sell a stake in Electrify America, as the automaker hoped to raise up to $1 billion in outside financing to expand its electric vehicle infrastructure.
In an interview, Giovanni Palazzo, 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 partnerships for EV charging with a wide range of automakers outside the Volkswagen Group, including Ford Motor Co., Hyundai/Kia, BMW, Mercedes-Benz, Geely Automobile’s Volvo and Polestar, and Tesla rival 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 Electrify America competitor ChargePoint, according to investor website PitchBook.