Volkswagen AG plans to build a fast-charging station network for electric vehicles in China, Bloomberg News reported Jan. 10, citing people familiar with the matter.
The network reportedly will be built in partnership with China FAW Group Corp. and two other Chinese companies.
Volkswagen and FAW will initially invest 1 billion Chinese yuan together and each hold 30% of the venture, while their other partners will hold the remaining stake. The unnamed sources said the venture will be operational within the first half of 2019, the report added.
More Chinese automakers and battery manufacturers are expected to join the venture, with SAIC Motor Corp. Ltd. preparing to get on board.
A Volkswagen spokesman in China declined to comment on the matter, while FAW did not have an immediate comment, Bloomberg said. The news wire added that calls to an SAIC representative went unanswered.
The report comes after Volkswagen's announcement in November 2018 that it will invest, together with its partners, €4 billion to deliver up to 400,000 new energy vehicles in China by 2020.
On Jan. 8, the German carmaker said it will establish a new company that will offer renewable energy and charging services.
As of Jan. 9, US$1 was equivalent to 6.81 Chinese yuan.