Big Energy Firms and Automakers Investing in EV Charging Startups

Summary

  • Since 2017, at least 85 charging companies have been acquired in a rapidly consolidating sector.
  • Major energy companies, hardware companies, and other charging companies have absorbed many of these charging stations.
  • Big corporations like BP, Shell, ABB, Siemens, and SK, along with automakers such as Volkswagen, BMW, Mercedes-Benz, Hyundai, and Geely’s Volvo, are heavily investing in EV charging startups.
  • The EV sector investment portfolio of the VW group includes companies like Electrify America, Ionity, Hubject, has.to.be, Go To-U, ChargeSmith, EcoG and PowerShare.
  • Large asset managers like BlackRock, Fidelity, and Wellington Management also have stakes in several charging companies.

The Rapid Consolidation of the Charging Sector

The charging sector is experiencing a swift consolidation, with over 85 companies getting acquired since 2017. Many of these companies are being absorbed by major energy and hardware companies like Shell (LON:), Statkraft, EDF (EPA:), BP (NYSE:), Total, Engie, ABB (ST:), and Schneider Electric (EPA:), along with other charging companies such as Blink, ChargePoint (NYSE:) and Charge Enterprises.

Investments by Large-Cap Corporations

A multitude of large-cap corporations such as BP, Shell, ABB, Siemens, and SK, are heavily investing in EV charging startups. Auto manufacturers like Volkswagen (ETR:), BMW (ETR:), Mercedes-Benz (OTC:), Hyundai (OTC:) and Geely’s Volvo (OTC:) Cars are also allocating significant resources in this sector.

VW Group’s Investment Portfolio

VW Group’s investments in the sector encompass several notable entities such as Electrify America, Ionity, Hubject, has.to.be, Go To-U, ChargeSmith, EcoG and PowerShare.

Asset Managers’ Involvement

Top asset managers including BlackRock (NYSE:), Fidelity, and Wellington Management possess stakes in various charging firms. Noteworthy among them is BlackRock’s investment in companies like EVgo, Ionity, Jolt Charge, Freewire, and Volta Charging.

This trend has the potential to significantly influence trading, particularly impacting energy assets like Shell (LON:), BP (NYSE:), ABB (ST:), and Schneider Electric (EPA:), and automobile assets like Volkswagen (ETR:), BMW (ETR:), and Mercedes-Benz (OTC:).

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