By Vera Eckert, Christoph Steitz and Tom Käckenhoff

FRANKFURT/DUESSELDORF (Reuters) – Volkswagen (DE:) plans to double staff numbers at its charging and energy division, roll out new payment technology next year and strike more alliances to take on Tesla (NASDAQ:) in a key electric vehicle (EV) battleground: power infrastructure.

Europe’s largest carmaker is making sure there are sufficient fast-charging outlets and enough power for the EVs they want to sell. This will help convince those who worry about their battery life that they can get rid of fossil fuel cars.

Volkswagen’s electric ambition is underlined by Elke Temme who was a power industry veteran and spent almost two decades working for German energy companies RWE (and Innogy) to assist the company in getting in better shape for Tesla.

Since January, Temme (53), has had the task of coordinating the various power activities at the automaker, including procuring energy for customers, charging their vehicles at home and then selling them the required electricity.

Temme said that in order to achieve this, it will be necessary to have a greater workforce. In fact, Temme is planning to double the employees of Volkswagen’s European Charging and Energy division to 300 people in 2022. This follows doubling their staff in 2018, she stated to Reuters.

We’re investing in large growth areas, which don’t necessarily have to prove profitable immediately. She said that these investments are always considered in the context of the group strategy. It is important to build a solid infrastructure.

Temme refused to give details about the budget, but stated that Herbert Diess (a Tesla fan) approved investment requests for the division. The company also sells battery storage systems at home, similar to Tesla’s Powerwall.

Volkswagen leads the pack worldwide by far with its investment plans for EVs and batteries through 2030, according to a Reuters analysis https://reut.rs/3wQop01, and it is planning to spend 35 billion euros on battery EVs by 2025. Global automaker EV & battery investments, https://graphics.reuters.com/CLIMATE-UN/AUTOS-EV/jnvwexwgqvw/chart.png

PLAYING CATCH-UP

VW needs to catch up when it comes time to connect fast-chargers, which many analysts feel are essential for bringing EVs mainstream.

Tesla is a long-standing innovator in supercharging technology and boasts a network of around 30,000 worldwide fast-chargers. It claims that they can provide a boost of 200km (125 miles) in just 15 minutes.

According to the company, its network had increased by a third in the last 18 months. This will increase further in the coming years.

Volkswagen expects that its fast-charging network will nearly double to 45,000 in 2025, when it plans to overtake Tesla as global leader in EVs. It has 18,000 electric pumps across Europe and 17,000 in China, while 10,000 are located in North America.

Volkswagen stated in March it would spend 400 millions euros to increase its fast-charging network across the continent.

It’s still a tiny fraction of the $5 billion that Europe Union believes is necessary to build charging infrastructure in Africa.

Europe: The Volkswagen group, together with its rivals BMW, Daimler, Ford, and Hyundai, is a shareholder of the EU’s Ionity fast-charging venture.

It has also joined forces with other energy companies, such as Italy’s Enel (MI)), Britain’s BP, (NYSE:), and Spain’s Iberdrola are all helping to close geographical gaps. This will provide a framework for how different industries can share funding for EV infrastructure.

“Various models are conceivable, from product partnerships and joint ventures to M&A,” said Temme. Global automaker EV & battery investments, https://graphics.reuters.com/CLIMATE-UN/AUTOS-EV/myvmnkgmypr/chart.png

CARS AND POWER

Tesla already proved that selling cars is not enough when it comes down to EVs. It has adopted a model that offers customers everything from cars to battery storage to solar panels as well as electricity https://reut.rs/3FjTlc2 in some U.S. states.

Volkswagen sells electricity to clients who own an EV/plug-in hybrid. Temme explained that one of their tariffs is now available for customers who don’t have a VW. It has attracted more 10,000 clients since it was launched in July.

According to her, VW will make their fast-charging stations available to all electric vehicle drivers. This is in contrast with Tesla’s current supercharging system which was only for Tesla drivers. There has been a pilot program in the Netherlands.

Temme stated that “we are taking a different approach to Tesla in terms of charging infrastructure rollout.”

We want an open and non-discriminatory charging system. Our services will be improved to improve our customer experience.

Volkswagen claims that its open-for all approach allows buyers of its EVs to charge at over 250,000 public charging points in Europe – with different providers offering different charging speeds.

Problem is, charging protocols and payment options can differ between vendors. This could make refueling your EV a complicated and time-consuming task.

From the first quarter of 2022, Volkswagen plans to offer “Plug & Charge” technology in Europe to make the process smoother.

When the car is plugged into a refuelling station, it will save the owners’ payment information and send a contactless payment.

These are not new problems for existing carmakers. However, Temme who saw firsthand how Germany switched away from nuclear power after the Fukushima catastrophe believes that they can be overcome.

“Utilities have to reinvent themselves in order to transition from nuclear, coal and renewables. “The question at the moment in the automotive industry is whether we can shift our focus away from the conventional vehicle to sustainable mobility,” she stated.

These challenges are similar in magnitude.”

($1 = 0.8738 euros)