Top Volkswagen and Xpeng executives pose at the German carmaker's launch event in Beijing, China, August 24, 2024.
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Shares Volkswagen AND Xpeng both rose on Monday after the two companies announced plans to expand their electric vehicle charging station partnership in China.
The German carmaker and the Chinese electric car maker have signed a memorandum of understanding committing to mutually open their super-fast charging networks to their customers. As part of the cooperation, the two companies will establish over 20,000 charging points in 420 cities across China.
Hong Kong-listed Xpeng shares closed 3.4% higher on Monday. Volkswagen rose 2% in early European trading.
The companies said Volkswagen and Xpeng will explore the possibility of collaborating on co-branded super-fast charging stations.
“Through our strategic cooperation with XPENG, we will establish one of the largest super-fast charging networks in China, enabling 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 in China .
Charging points are becoming a key battleground in the electric vehicle space because they provide the necessary infrastructure that allows people to go further in battery-powered cars if they need a recharge. Tesla is also expanding its Supercharger network in China.
Volkswagen has increased its focus on China. In 2023 it is invested approximately $700 million in Xpengtaking up 4.99% of shares in the company. The German car manufacturer intends to offer at least 30 fully electric models of its brands in China by 2030.
Xpeng and Volkswagen are also looking for this develop together two electric cars for delivery in China in 2026