Electrify America Could A New $1 Billion Partner: Why Is VW Selling A Stake Of Its Company?

Electrify America, one of the largest EV charging stations in the United States, could have a new partner. After its mother company, Volkswagen Group of America, this major information was confirmed that it is selling a stake in its EV charging station.

VW launched its giant high-speed charging company as part of its settlement with the United States government over the Dieselgate scandal. The giant automaker was also forced to invest around $2 billion in ZEV charging infrastructure and the promotion of ZEVs in the region as part of the settlement.

Although this is quite expensive, the investment is a good offer since Volkswagen Group of America was not forced to pay more fines compared to other automakers entering the market. The $2 billion investment was used to improve Electrify America, making it a new network of fast-charging stations in the U.S.

Right now, Volkswagen owns the biggest third-party EV charging network in the country.

Electrify America To Have New Partner

According to Electrek's latest report, Electrify could have a new business partner since VW is planning to sell one of the charging station's stakes.

"Volkswagen is to sell a stake in its electric vehicle charging unit Electrify America, two people familiar with the matter said, as the carmaker looks for outside funds to build infrastructure for battery-powered cars," said the giant automaker.

"Volkswagen is working with Citi to look for a co-investor that is prepared to inject roughly $1 billion into the division, the people said, adding that the company is expected to shortly reach out to infrastructure groups and other potential investors," added Volkswagen.

On the other hand, Electrify America still hasn't released any statement regarding the upcoming business partnership. Aside from this, Volkswagen also did not confirm the name of the actual new partner of its subsidiary company.

GM's Ultium Battery Could Help It Become An EV Creator

Volkswagen currently has lots of plans since it looks for Electrify America's new partner and wants to become one of the giant EV creators in the industry. Aside from VW, GM is also planning to enter full-electric production.

Car and Driver reported that the new Ultium batteries could help it achieve this goal. On the other hand, these new EV batteries are also expected to power almost all models of GM this coming 2035.

For more news updates about Electrify America and other fast-charging networks, always keep your tabs open here at TechTimes.

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Written by: Griffin Davis