Yahoo Finance

Key Takeaways

• XPeng and Volkswagen will work together to build a network of electric vehicle charging stations in China.

• The two carmakers expect to produce more than 20,000 charging units to be installed in 420 cities.

• XPeng and Volkswagen plan to look into making more strategic collaborations.

Chinese electric vehicle (EV) maker XPeng (XPEV) and Volkswagen's China unit on Monday struck a deal to produce super-fast charging stations there.

XPeng said the agreement calls for the building of more than 20,000 charging units in 420 cities. XPeng and Volkswagen will operate them, and they'll be available for use by drivers of cars by both.

The company explained that customers will benefit from the combination of the companies' technological advantages in "high-power liquid-cooled super-fast charging," along with their reach throughout China.

XPeng added that the deal "will also extend to [the] future possibility of building co-branded super-fast charging stations in China." It added that the two firms plan to explore even more strategic collaborations.

American depositary receipts (ADRs) of XPeng initially rose on the news but were little changed in recent trading. They are down more than 10% over the past year.

Read the original article on Investopedia