Volkswagen, Siemens invest $450M into growing Electrify America e-mobility efforts

© Siemens

The electric vehicle DC fast charging station network known as Electrify America LLC received a major monetary boost this week, gaining its first external investor and a $450 million equity investment thanks to joint efforts from Siemens and Volkswagen.

The Volkswagen subsidiary, now valued at $2.45 billion, plans expansion throughout the United States and Canada, and will now be backed by Siemens as a new shareholder and member of its board. Siemens, a global technology company, used its financing arm Siemens Financial Services (SFS), for the deal. As part of this, it will support Electrify America’s accelerated growth plans through technological advancements in charging and energy solutions for public, residential and commercial offerings. It also solidified the potential for future collaboration on charging solutions.

Siemens itself offers a full suite of AC and DC charging hardware, software and services for a range of applications.

“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,” Veronika Bienert, CEO Siemens Financial Services, said. “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.”

Electrify America was formed as a result of the 2015 Volkswagen emissions scandal, when the U.S. Environmental Protection Agency charged the company with intentional violations of the Clean Air Act and creative technology tweaks to hide high vehicle emissions. This led to massive recalls and billions paid in settlement, as well as a pledge to promote electric vehicles.

Today, Electrify America has deployed more than 730 charging locations throughout the United States.

“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,” Thomas Schmall, Volkswagen Group board member for technology and CEO of Volkswagen Group Components, said. “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.”

Additionally, the partnership aligns with Volkswagen’s NEW AUTO strategy at large, which calls for around 45,000 High Power Charging points established throughout Europe, China and the United States by 2025.