ABB is set to acquire a 67% stake in Shanghai Chargedot New Energy Technology (Chargedot), a Chinese e-mobility solutions provider.

The deal is expected to be completed in the next few months and will enable ABB to further strengthen its stake over the next three years.

The financial details of the deal have not been disclosed.

Established in 2009, Shanghai-based Chargedot supplies AC and DC charging stations and software platforms for a range of customers such as electric vehicle (EV) manufacturers, EV charging network operators and real estate developers.

Shanghai SAIC Anyo Charging Technology, a subsidiary of SAIC, is among Chargedot’s other shareholders.

According to ABB, the majority stake acquisition in Chargedot is ‘a natural fit for ABB’, who currently offers grid distribution and charging point solutions, as well as catering towards the electrification of ships, trains, buses, trams and cable cars.

The deal is expected to strengthen ABB’s links with Chinese electric vehicle manufacturers, supporting its e-mobility portfolio with hardware and software developed especially for local needs.

ABB Robotics supplies robot units and software to EV manufacturers in China.

ABB’s Electrification business president Tarak Mehta said: “This investment is a further demonstration of ABB’s commitment to enabling sustainable mobility.

“With China forging ahead in the development of a comprehensive e-mobility ecosystem, this acquisition will give ABB a significant role in delivering growth, working closely with SAIC and other leading Chinese car manufacturers.”

Chargedot CEO Mao Chunhua said: “Chargedot was one of the first high-tech enterprises in China to focus on new energy vehicle charging solutions. By joining with ABB, we will be positioned strongly to make the next big leap forward.”

The outlook for the global e-mobility infrastructure market is growing.

Grand View Research expects the Asia Pacific region to show the highest growth in this market. China already owns the world’s largest fleet of electric vehicles at two million, with consumers supported by a government-backed incentive scheme.

ABB has sold over 11,000 DC fast-charging points across 76 countries. In China, ABB has been working with BYD and Daimler since 2016. It has also supplied its DC Wallbox units for charging Denza EVs.

It also supplies DC fast charging solutions to electric vehicle manufacturers such as NIO, BP and 66 iFuel.