Volkswagen may be prepared to sell off its stake in Electrify America to help the division grow in the electric car era. According to a report from Reuters on Monday, the automaker is reportedly working with Citi to find a new co-investor ready to spend at least $1 billion to help Electrify America grow.
According to the publication's sources, the automaker wants outside help to position the company for growth and to build out an EV infrastructure. Volkswagen and Electrify America declined to comment on the news.
As it stands, the company plans to spend roughly $2 billion through 2026 to help expand its network of charging stations. Right now, the count only stands at 635 with 2,850 plugs available for drivers. Another 125 stations are under construction, but the network is far from a Tesla Supercharger network in terms of overall coverage. However, new stations will include 350-kilowatt fast-charging plugs that can juice up a battery in about 20 minutes.
Charging infrastructure remains a tough selling point for those kicking the tires on EVs. While the majority of charging takes place at home, according to recent studies, a lack of public charging infrastructure is a hurdle. The Biden administration now supports a bipartisan infrastructure package that includes funds for hundreds of thousands of new EV charging stations dotted along the interstate highway system, which could provide reprieve to the issue. A final infrastructure package could lean on private companies, like Electrify America, to help construct the nationwide system.