Engie Shuts Down EVBox Amid €800 Million Losses

Image source: EVbox

Published on October 21, 2024

French energy giant Engie is pulling the plug on Amsterdam-based EVBox, a leading electric vehicle charging infrastructure provider, after suffering €800 million in losses since acquiring the company in 2017. EVBox will close its operations in the Netherlands, Germany, and the US, with only 30 of its 700 employees retaining their jobs. Engie had sought a buyer but, after receiving only two bids, decided to liquidate the company.

The losses stem from a variety of factors. EVBox struggled with profitability despite the booming demand for electric vehicle infrastructure. In 2021, Engie attempted to take EVBox public via a stock market merger, but the plan failed, signaling deeper financial troubles. The company faced increasing competition, market ramp-up shortfalls in some countries, and the pressure of new regulations, such as the Alternative Fuels Infrastructure Regulation (AFIR), which required significant additional investments in both hardware and software. These regulatory demands placed extra strain on smaller players like EVBox, which was unable to keep pace with the required upgrades, leading to mounting operational costs.

Additionally, EVBox’s expansion into multiple international markets, including the US and Germany, proved costly and unsustainable. The company also faced challenges in the wake of a shifting political landscape, as funding programs for EV infrastructure were canceled or reduced in several regions. Dutch media speculated that Engie, whose largest shareholder is the French state, prioritized its French manufacturing sites, placing further strain on EVBox’s Dutch operations.

Despite these setbacks, a glimmer of hope comes from Financière de Pessac, led by Eric Stempin, which has proposed a partial takeover. The offer involves acquiring EVBox’s DC fast-charging business through Stempin’s EVTronic brand. This plan could save 134 jobs, primarily in France and in after-sales service, while honoring commitments to EVBox customers for DC charging stations. Engie will also set up a new subsidiary in the Netherlands to handle maintenance of the company’s existing AC chargers, creating around 100 temporary jobs.

The partial rescue may help mitigate some of the fallout from EVBox’s closure, but the broader challenges of the electric vehicle charging sector remain, with smaller players continuing to struggle under financial pressure and regulatory demands.

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