Shell USA to wind down Volta Charging Industries
It was only last year that Shell USA Inc., a subsidiary of Shell plc, announced that it had entered into a agreement and then completed the acquisition of Volta Inc., an EV charging network operator in the United States.
The all-cash transaction was valued at US$169 million and provided Shell an established and well-regarded public EV charging network with over 3,000 charge points, with many placed in shopping centres, grocery stores and pharmacies across 31 U.S. states and territories.
“We want to make charging as convenient as possible for our customers,” said István Kapitány, executive vice-president of Shell Mobility upon completion of the acquisition in a press statement. “As demand for EV charging continues to grow, destination sites will play a key role in meeting people where they spend a great deal of time: the store, the gym, and everywhere in-between. Beyond providing a charging service, Volta specializes in generating advertising revenues from screens embedded into the charge point, adding a source of non-fuel revenue from sites both in the U.S. and globally.”
On March 29th of this year, it was announced in a WARN notice sent to Volta employees that Volt is winding down its operations and that Shell will take over the operations:
“This letter is to inform you that, as part of Shell USA, Inc.’s (“Shell”) acquisition of Volta Inc. and Volta Charging Industries, LLC (“Volta”), Volta is winding down its operations, which Shell and its affiliates will take over. This will involve Volta’s cessation of all operations and termination of all employees effective May 31, 2024.”
According to the same WARN notice, most of Volta’s employees have received offers of employment from Shell or its affiliates to begin work effective June 1, 2024.
READ: Shell expands EV reach in the U.S. with Volta acquisition
When Shell USA was contacted by Convenience Store News Canada to ask what this news means for Volta’s operations and technologies, and for the existing EV charging network and its expansion in the future, a spokesperson wrote back: “We are in the process of integrating Volta into Shell following the acquisition of the company last year. As a courtesy and formality, notices were recently sent to Volta staff regarding this transition, though the majority of these individuals were offered roles at Shell or its subsidiaries.
“The goal remains creating more value with less emissions by focusing on performance, discipline and simplification across the company. That includes following through on an initiative announced at Shell Capital Markets Day to deliver structural cost reductions of US$2-3 billion by the end of 2025. Achieving those reductions will require portfolio high grading, new efficiencies, and a leaner overall organization. While no formal targets exist, we will continuously look to right-size the activities that deliver the most value.”
