Key Points
- Volkswagen and Xpeng are opening their EV charging networks to each other’s customers.
- Over 20,000 charging points across 420 Chinese cities will be accessible through this collaboration.
- Shares of Xpeng rose 3.4%, and Volkswagen gained 2% following the announcement.
- The partnership includes plans for co-branded super-fast charging stations. The firms will jointly develop two electric car models for delivery in 2026.
Volkswagen and Xpeng announced on Monday that they are expanding their collaboration in electric vehicle charging infrastructure in China, which has raised the shares of both companies. The partnership involves a memorandum of understanding under which the German automaker and the Chinese EV firm will open their super-fast charging networks to each other’s customers. This initiative will provide access to over 20,000 charging points across 420 cities in China.
Xpeng’s shares, listed in Hong Kong, gained 3.4% by the close of trading, while Volkswagen’s stock rose 2% during early European trading. As part of the collaboration, the two companies also plan to explore the development of co-branded super-fast charging stations, signaling a deeper commitment to enhancing EV infrastructure in the world’s largest automobile market.
Olaf Korzinovski, executive vice president of Volkswagen Group China, emphasized the partnership’s importance, noting that it will create one of China’s largest super-fast charging networks. This network will facilitate e-mobility in urban centers and extend its reach to more remote cities, enabling the broader adoption of electric vehicles.
Charging infrastructure has become a critical competitive arena in the electric vehicle market, allowing drivers to travel longer distances with confidence in recharging options. Tesla, a key competitor, has also been actively expanding its Supercharger network in China.
Volkswagen’s commitment to China’s EV market is underscored by its $700 million investment in Xpeng in 2023, acquiring a 4.99% stake in the company. By 2030, Volkswagen aims to launch at least 30 fully electric models in China. The two companies are also collaborating on developing two electric vehicle models for delivery in 2026.
