German automaker Volkswagen welcomed multinational conglomerate Siemens into its Electrify America venture. As a result, Siemens acquired a minority stake in Volkswagen’s network of electric vehicle (EV) fast-charging stations with a joint investment of $450 million.
“With our additional investment in Electrify America, we are giving e-mobility in North America a further boost,” Thomas Schmall, head of VW components group, said while announcing the deal.
The investment, which brings Electrify America’s valuation to $2.45 billion, gives Siemens a 10 percent stake in the company as well as a seat on the board, according to Bloomberg.
Volkswagen has been recently looking for an investor in an attempt to increase Electrify America’s network. The company currently has around 800 stations with 3,500 fast-charging ports across North America and plans to more than double that number until 2026. Volkswagen hopes to attract $1 billion in investments to reach this goal.
Siemens, who is the first external investor in Electrify America, has been ramping up its involvement in electric cars infrastructure. Back in March, Siemens announced a $54 million investment in sites in Texas and California that develop “electrical equipment for critical infrastructure systems including EV charging.” It also invested $25 million earlier this month to acquire a minority stake in wireless charging technology company WiTricity.