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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 of Volkswagen and Xpeng both rose on Monday after the two companies announced plans to expand their collaboration on electric vehicle charging stations in China.
The German automaker and the Chinese electric car firm have signed a memorandum of understanding in which they commit to open their respective super-fast charging networks to each other’s customers. The partnership will see more than 20,000 charging points operated by the two companies in 420 cities in China.
Xpeng shares in Hong Kong closed 3.4% higher on Monday. Volkswagen was up 2% in early trading in Europe.
Volkswagen and Xpeng will explore cooperation on co-branded super-fast charging stations, the companies said.
“Through our strategic partnership with XPENG, we will form one of the largest Super Fast Charging Networks in China that will enable people to seamlessly integrate e-mobility into their daily lives not only in metropolises, but also in remote cities,” said Olaf Korzinovski, executive. vice president of Volkswagen Group China.
Charging points have become a key battleground in the electric vehicle space because they provide the necessary infrastructure that allows people to drive more in battery-powered cars if they need to recharge. Tesla is also expanding its Supercharger network in China.
Volkswagen has increased its focus on China. In 2023, it is invested about $700 million in Xpengtake a 4.99% stake in the company. The German automaker aims to offer at least 30 fully electric models across all its brands in China by 2030.
Xpeng and Volkswagen are also looking develop together two electric cars for delivery in China in 2026.
