BMW, VW and others in talks to expand Ionity network

A venture between VW, BMW and other automakers is currently plotting to significantly expand its electric vehicle charging network in Europe in order to meet the increasing sales of electric vehicles as part of the twin transitions.

Sales of electric vehicles have seen significant growth throughout 2020 and the companies are looking to add additional funding to their Ionity network, which has been building electric vehicle charging stations in Europe since 2017.

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The project is modelled on Tesla's Supercharger network and has seen renewed interest to allay fears that long queues for charging ports could put off potential customers.

Ionity and its shareholders are currently discussing a growth plan for the future, including the rapid expansion of high-speed infrastructure.

The company is looking to target both high-traffic areas as well as less-frequented highways, which often contain little-to-no EV infrastructure.

Each shareholder has already donated at least $200 million to the project and it is likely the expansion plans will require a significant investment from those involved.

Shareholders include other major automakers such as Hyundai, Ford and Daimler.

EV sales in Europe tripled in 2020, allowing for Europe to overtake China as the world's largest electric vehicle market.

This has been driven by the coronavirus pandemic mixed with nations across the globe starting to implement harsh emissions and climate policies

Standards groups last month announced as many as one million charging stations may be required by 2024 in order to meet the increasing demand for battery-powered vehicles.

Royal Dutch Shell, looking to break into the street charging market, also recently bought ubitricity, the UK's largest EV charging operator to help consumers who do not have access to private charging stations.

However, the global semiconductor shortage has briefly stalled the shift to electric vehicles, as a number of automakers look to overhaul their supply chains or expect to suffer losses until the crisis is solved.

Read more: Automakers may have to overhaul supply chains to address chip shortage

The chip shortage is partially due to the boom in electronic product sales from the pandemic, which has meant demand for semiconductors has outpaced supply.

Automakers may also be looking to introduce their own charging stations in urban areas over threats of a slowdown of sales due to a lack of infrastructure.

Ionity has built more than 400 charging stations in Europe since its founding.

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