ImpactAlpha, Dec. 1 –
How to drive a massive energy transition? With massive investments.
Munich-based Ionity reeled in $700 million to more than quadruple its electric vehicle charging network, from 1,500 charging points across Europe today to 7,000 by 2025. The European Union plans to phase out new gas-powered cars by 2035. The funding will also enable Ionity to acquire properties to build and operate service stations on.
Part of the super-sized haul came from existing auto investors BMW, Ford, Hyundai, Mercedes-Benz, and Volkswagen. A new investor, BlackRock, is said to have invested $500 million from its Global Renewable Power fund, which closed a $4.8 billion fundraise in April.
Bigger funds are driving bigger deals. Tata Motors in October grabbed $1 billion from TPG Rise Climate and Abu Dhabi’s ADQ for a new electric vehicle subsidiary that aims to power up India’s EV market. TPG Rise Climate, the private equity firm’s first dedicated climate fund, reached a first close of $5.4 billion in July.