OIL giant Shell is moving into EV charging and battery manufacturing in Australia with a $95 million capital injection into German battery company Sonnen that has a factory in the former Holden plant in Adelaide.

Shell’s venture capital division, Shell Ventures, was the key financier in Sonnen’s latest growth plans around the world.

In Australia, Sonnen produces batteries for commercial and domestic energy storage, and in May started its first exports with an ongoing order to New Zealand.

The company has more than 50 employees and all production staff are former Holden workers.

It started production in Adelaide to service the Australian, New Zealand and South-East Asian markets concurrently, with the South Australian government last year launching its $100 million Home Battery Scheme that offers subsidies for homeowners of up to $A6000 on a solar system.

Sonnen said it forecasts production of 10,000 batteries a year over the next five years to meet demand from Australian households, as well as for export to the Asia-Pacific region.

Shell has also entered into a joint venture in EV charging with German-based company Ionity that is increasing its high-speed charge outlets in Europe to 400 by next year. Ionity is a joint venture between Volkswagen AG, BMW Group, Daimler AG, Ford Motor Company, Audi and Porsche.

It has also led a $52 million investment in EV charging start-up Ample that is planning a rollout of stations in the US.

Shell’s move is echoed by BP which recently bought Chargemaster, the biggest EV charging network in the UK.

Shell has also launched an EV charging service in Singapore under the Shell Recharge banner.

It is Shell’s first EV infrastructure move into South-East Asia and is incidentally made as vacuum cleaner manufacturer and aspiring EV-maker Dyson completes its billion-dollar car factory in Singapore. Dyson EV production is expected to start next year.

Shell Recharge plans to account for 20 per cent of Shell’s retail network in Singapore by the end of this year. Shell plans no connection fee and EV owners will be charged 59 cents per kilowatt-hour at the service stations’ rapid chargers that aim to recharge to 80 per cent in 30 minutes. A 40kWh Nissan Leaf, for example, would cost $23.60 to recharge.

Research by the Singapore government last year found that about 55 per cent of respondents said low charging station numbers was a major deterrent in considering an EV for purchase and 53 per cent were put off by the cost of maintaining an EV and fears of running out of power halfway through a journey.

Shell now hopes the additional charge stations will boost EV sales. It said that the addition of convenience services while vehicles were being charged at the stations would further attract EV ownership.

Shell is not alone in expanding charging points for EVs. Singaporean utility company SP Group in January opened chargers at eight locations across the island that offers both 50kW DC and 43kW AC services in commercial buildings, industrial sites and education institutions. It plans 1000 similar sites by 2020, including 250 DC charging options.

The moves fit with Dyson’s plans for its electric car.

Dyson CEO Jim Rowan said in an interview: “The decision of where to make our car is complex, based on supply chains, access to markets and the availability of expertise that will help us achieve our ambitions.

“Singapore has a comparatively high cost base, but also great technology expertise and focus. It is, therefore, the right place to make high-quality technology-loaded machines and the right place to make our electric vehicle,” he said.

Dyson has had production and design facilities in Singapore since 2007 and now employs about 1100 people in the manufacture of its electric motors for homeware products. The factory makes more than 21 million electric motors a year.

By Neil Dowling