Switzerland-headquartered ABB is set to acquire a 67% share stake in Shanghai Chargedot New Energy Technology Co., Ltd., a leading Chinese e-mobility solution provider.
According to the company statement, the transaction is expected to be completed in the coming months, and ABB is likely to increase its stake further in the next three years.
Shanghai-based Chargedot which makes charging stations and software platforms to enable charging for vehicles has made huge strides since its inception in 2009 and provides AC and DC charging stations, as well as the necessary software platform to a range of customers that includes EV manufacturers, EV charging network operators, and real estate developers.
Speaking about this latest move, Tarak Mehta, president of ABB’s electrification business, said, “This investment is a further demonstration of ABB’s commitment to enabling sustainable mobility. 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.”
Echoing a similar sense of optimism, CEO of Chargedot, Mao Chunhua said, “Chargedot was one of the first high-tech enterprises in China to focus on new energy vehicle charging solutions, and by joining ABB, we are positioned strongly to take the next big leap forward.”
The e-mobility ecosystem is growing at a rapid pace, and China is leading the way with the largest fleet of electric vehicles worldwide at two million. In China, the company has been working closely with BYD and Daimler since 2016, supplying its DC Wallbox units for charging Denza electric vehicles.
In July 2019, Mercom reported that ABB and Italian company FIMER had signed an agreement under which FIMER acquired ABB’s solar inverter business. This acquisition included the solar inverter business from Power-One, which was acquired by ABB’s Discrete Automation and Motion division in 2013. ABB, one of the biggest names in the solar inverter segment, had created headlines with this news of exiting the inverter segment.
Addressing the growing usage of electric vehicles and the infrastructure needed for charging them, the Ministry of Power revised the guidelines and specifications for charging infrastructure in India. A phase-wise installation of an appropriate network of charging infrastructure throughout the country has been envisioned in the guidelines to ensure that at least one charging station will be available in a grid of 3 km x 3 km in the cities and one such station to be set up at every 25 km on both sides of the highways.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.