Volkswagen and Xpeng will build a superfast charging network for electric vehicles in China

Shares of Volkswagen and Xpeng both rose on Monday after the two companies announced plans to expand their partnership on electric vehicle charging stations in China.

A German automaker and a Chinese electric car company have signed a memorandum of understanding committing to open their superfast charging networks to each other’s customers. The collaboration will enable more than 20,000 filling stations to be operated by both companies in 420 cities across China.

Xpeng’s Hong Kong-listed shares closed 3.4% higher on Monday. Volkswagen rose 2% in early trade in Europe.

Volkswagen and Xpeng will explore cooperation on joint brands of superfast charging stations, the companies said.

“Through our strategic cooperation with XPENG, we will form one of the largest super-fast charging networks in China that will enable people to seamlessly integrate e-mobility into their daily lives not only in metropolises but also in remote cities,” said Olaf Korzinovski, CEO Vice President of Volkswagen Group China.

Charging points are becoming a key battleground in the EV space as they provide the necessary infrastructure to allow people to drive further in battery-powered cars if they need a charge. Tesla is also expanding its Supercharger network in China.

Volkswagen has increased its focus on China. In 2023 that is invested about $700 million in Xpengtaking a 4.99% stake in the company. The German automaker aims to offer at least 30 fully electric models of its brands in China by 2030.

Xpeng and Volkswagen also want to to develop together two electric cars to be delivered in China in 2026.