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Top executives from Volkswagen and Xpeng pose at the German automaker’s launch event in Beijing, China, on August 24, 2024.
Bloomberg | Bloomberg | Getty Images
Actions Volkswagen and Xpeng both rose on Monday after the two firms announced plans to expand their partnership in electric vehicle charging stations in China.
A German automaker and a Chinese electric vehicle firm have signed a memorandum of understanding in which they have committed to open their superfast charging networks to each other’s customers. As a result of the cooperation, both companies will operate more than 20,000 charging points in 420 cities in China.
Shares in Hong Kong-listed Xpeng rose 3.4% on Monday. Volkswagen rose 2% in early European trading.
Volkswagen and Xpeng will explore cooperation in the field of joint super-fast charging stations, the companies said.
“Thanks to our strategic cooperation with XPENG, we will form one of the largest ultra-fast charging networks in China, which will allow people to seamlessly integrate e-mobility into their daily lives, not only in megacities, but also in remote cities,” said Olaf Karzinowski, Vice CEO -President of Volkswagen Group China.
Charging points are becoming a key battleground for electric vehicles because they provide the necessary infrastructure to allow people to drive further in battery-powered cars when they need a recharge. Tesla is also expanding its Supercharger network in China.
Volkswagen is increasing its focus on China. In 2023 it is invested about $700 million in Xpenggetting a 4.99% stake in the firm. The German automaker aims to offer at least 30 fully electric models of its brands in China by 2030.
Xpeng and Volkswagen are also looking jointly develop two electric vehicles for delivery to China in 2026.
