ABB will buy a 67 percent majority stake in Shanghai Chargedot New Energy Technology, a Chinese e-mobility solution provider.
The transaction is expected to be completed in the coming months and ABB has the possibility to increase its stake further in the next three years.
The acquisition will strengthen ABB’s relationship with Chinese electric vehicle manufacturers and broaden the company’s e-mobility portfolio with hardware and software developed specifically for local requirements.
Since its establishment in 2009, Shanghai-based Chargedot has made a significant contribution to the uptake of electric vehicles in China. The company supplies AC and DC charging stations, as well as the necessary software platform to a range of customers that includes EV manufacturers, charging network operators and real estate developers.
ABB already offers solutions from grid distribution to charging points for cars and trucks, as well as for the electrification of ships, railways, trams, buses and cable cars.
“This investment is a further demonstration of ABB’s commitment to enabling sustainable mobility,” said Tarak Mehta, president of ABB’s Electrification business.
“With China forging ahead in the development of a comprehensive e-mobility ecosystem, this acquisition will give ABB a significant role in delivering growth, working closely with SAIC and other leading Chinese car manufacturers.”
Mao Chunhua, CEO of Chargedot stated that: “Chargedot was one of the first high-tech enterprises in China to focus on new energy vehicle charging solutions. By joining with ABB, we will be positioned strongly to make the next big leap forward.”
The outlook for the global e-mobility infrastructure market is growing. Grand View Research, Inc. forecasts the Asia Pacific region is expected to show the highest growth in this market. China already boasts the largest fleet of electric vehicles worldwide at 2 million, with consumers supported by a government-backed incentive scheme.
ABB is currently making great efforts to expand it’s e-mobility portfolio. This can be seen in its partnership with the ABB FIA Formula E Championship, which serves as a global platform to test and develop e-mobility-relevant electrification and digitalization technologies, pushing the boundaries of e-mobility for a noise and emission free future.
Furthermore, ABB has been working with BYD and Daimler in China since 2016, supplying its DC Wallbox units for charging Denza electric vehicles. The company is also a supplier of DC fast charging solutions to electric vehicle manufacturers including NIO and to operators such as BP/ifuel 66.