Volkswagen Group, Siemens invests $450M in Electrify America
29 June 2022
The Volkswagen Group and Siemens are investing $450 million in Electrify America, with a post-money valuation of $2.45 billion. Through its financing arm Siemens Financial Services (SFS), Siemens becomes a minority shareholder in Electrify America with a low triple-digit million USD investment and will hold a seat on the board. Siemens is the first external investor in Electrify America.
The commitment aligns with Siemens’ continued efforts to advance open and accessible US electric vehicle charging infrastructure and its broader goals of decarbonization. The investment also lays the groundwork for future collaboration between Siemens Smart Infrastructure and Electrify America on the technologies and services that will continue the build-out of high-quality, reliable charging solutions.
The Volkswagen Group had earlier made a capital commitment of $2 billion through 2026. In making this incremental commitment, Volkswagen noted Electrify America’s significant momentum, accelerated growth, and long-term value of its ultra-fast charging network.
With our recent investment, we confirm our commitment to keep growing in the Charging and Energy business. Siemens’ investment validates our electrification strategy to provide charging and energy solutions nationwide, and the company is a significant strategic technology and electrification partner for us on this route.—Thomas Schmall, Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components
The investments will support Electrify America’s accelerated growth plans through technological advancements in charging and energy solutions across public, home and commercial offerings. Specifically, in making the announcement, Electrify America said the investment highlights the long-term growth and viability of Electrify America’s plans to expand to 1,800 charging stations and more than 10,000 ultra-fast chargers in the US and Canada by 2026.
As a full-service provider of e-Mobility charging infrastructure, Siemens eMobility offers the full spectrum of state-of-the-art AC and DC charging hardware, software and services—from residential to commercial to depot applications.
With the NEW AUTO strategy, the Volkswagen Group has made charging and energy its core business. By 2025, around 45,000 High Power Charging (HPC) points are planned in Europe, China and the USA together with partners. The product range also includes the entire range of charging solutions for private customers and companies—from the company’s own wallbox and flexible fast charging station to charging services and innovative, smart green electricity tariffs. In the next step, Volkswagen will anchor the electric car as a mobile power bank in the energy system creating additional added value for e-car customers.