Shell is expanding in the electric vehicle market through charging stations and now the company is acquiring one of its competitors, Volta, for $169 million.
Shell is acquiring one of its competitors, Volta, for $169 million. Volta Charging’s difference has always been that its business model is centered on ad sales. According to the US Department of Energy (DOE) data on January 2023, Volta Charging Inc. is the 4th largest charging network and media company with 3,172 individual charging ports across the US.
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With the acquisition of Volta, Shell Recharge Solutions will be the 4th largest EV charging network in the US. According to the acquisition announcement, Shell would provide Volta with loans to support the company until the planned acquisition is completed in the first half of 2023.
Shell USA Inc, a subdivision of Shel plc, will rename the existing EV charging stations of Volta Inc after the deal is approved by the board of directors at Volta. Vince Cubbage, interim CEO of Volta stated that “While the EV infrastructure market opportunity is potentially enormous, Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward.”
Shell Trying to Stay in the Game
While the automotive industry is evolving towards producing all-electric vehicles, oil companies are trying to survive. That’s why Shell acquired an EV charging network Greenlots back in 2019 and now Volta Charging. These moves will play quite a role in achieving its goals of adding 50,000 on-street EV charging posts in the UK and reaching to 500,000 charging points globally by the end of 2025.
We saw at CES 2023 that several EV companies launched new products for home and commercial charging. Furthermore, EVgo has announced its agreement with Amazon for an Alexa-assisted EV charging service connected to more than 150,000 US public EVgo charging stations. Those developments show us that the EV and EV charging industry will continue to grow as more companies enter into the business and consumers demand, government mandates and regulations will contribute to the expansion of the industry.