Siemens Spins Off EV Charging Biz to Juice Up Growth

Siemens is carving out its electric vehicle (EV) charging business, aiming to charge up growth in this booming sector. The German industrial giant announced on Monday that it plans to separate its Siemens eMobility unit, combining it with recently acquired DC fast-charging specialist Heliox under a new legal structure.

Riding the EV Wave

The EV charging market’s been on a tear lately, with rapid growth and consolidation across Europe, North America, and Asia. Big energy players like Shell and BP have been snapping up charging companies left and right since 2017, reports Reuters.

Siemens is looking to get a bigger piece of that pie. By spinning off eMobility, they’re hoping to “accelerate profitability by focusing on high potential business segments and strategically relevant geographies,” according to board member Matthias Rebellius.

Partnering Up for Power

Siemens isn’t just reorganizing – they’re making moves. Last week, they inked a deal with E.ON, one of Germany’s top charging station providers, to supply charging systems across Europe.

The Dutch company Heliox, which Siemens recently bought, focuses on chargers for eBus fleets and eTrucks. They’ll be going head-to-head with competitors like ABB, Sweden’s Vattenfall, and ChargePoint.

Show Me the Money

While Siemens is tight-lipped about specific financials, analysts are piecing together the puzzle:

• RBC’s Mark Fielding says Siemens is keeping “all options on the table,” including a potential IPO, M&A, or partnerships.
• UBS estimates the EV charging biz brings in €100-200 million, but with “likely very low profitability.”
• It’s currently just a small slice (about 1%) of Siemens’ Smart Infrastructure division revenue.

A Siemens spokesperson added: “The carve-out helps ensure readiness to capture the right partnership opportunities as they become available.”

EVXL’s Take

Siemens’ move highlights the growing importance of EV charging infrastructure. As more automakers like Volkswagen ramp up their electric offerings, reliable and widespread charging networks become crucial.

This spin-off could allow Siemens to be more agile in the fast-moving EV space, potentially leading to innovations that benefit drivers and accelerate EV adoption.

What do you think about Siemens’ strategy? Will this help them become a major player in EV charging? Share your thoughts in the comments below!​​​​​​​​​​​​​​​​