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