Tuesday, July 23, 2024
NewsShell Expands its U.S. Charging Network by Acquiring Volta

Shell Expands its U.S. Charging Network by Acquiring Volta

Following the acquisition of Volta, Shell is now at the helm of one of the largest destination charging networks in the U.S.

  • This means Shell now controls over 3,000 EV destination chargers in 31 U.S. States.

  • Volta’s current revenue comes mostly from advertising, but Shell plans to add DC fast chargers with a paid charging model.

  • The company aims to expand its global charging network to over 2,5 million charge points by 2030.

With the shift toward electrification in the automotive industry being in full swing and showing no sign of slowing down, some oil companies are trying to expand their horizons in order to remain relevant long after EVs surpass gasoline-powered vehicles in terms of registrations.

One of those companies looking to diversify its business model is Shell, which has just completed the purchase of Volta, one of the largest destination charging networks in the United States.

This gives Shell control of over 3,000 charge points installed in public locations where people usually spend a fair amount of time, such as malls, grocery stores, hotels, and gyms, across 31 States.

In addition to this existing network, the purchase, estimated at USD $169 million, gave Shell access to 3,400 planned charge points which have yet to be installed.

To proceed with the installation of these chargers and the maintenance of the existing network, Shell will benefit from a team of 200 employees from Volta.

At the moment, Volta generates the bulk of its revenue by selling advertising to other companies that want to have their ads played on a screen integrated into the charger.

Shell is likely to continue using this business model for the destination charging network, but the oil company also plans to add DC fast charging stations that will require drivers to pay for their use.

Even before this new acquisition, Shell was one of the most prominent companies in the global EV charging market since it currently manages over 140,000 individual charge points around the world.

Adding Volta to its network will allow it to expand its charging operations in North America, a key element in its strategy to have over 500,000 charge points globally by 2025, and 2,5 million by the end of the decade.

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