While on holiday with his family, Bernd Edelmann opted for an electric car to drive between Munich and Barcelona, a 14-hour trip that clocks above 1300 km. He was able to complete the drive without having to worry about running out of battery power in remote areas, thanks to the electric charging networks operated by IONITY. In a satisfying twist to the story, Edelmann is not only a customer of the network, he’s also the Chief Financial Officer (CFO) of the company.
IONITY, a relatively new player in the business world, has achieved remarkable success. The company was established in November 2017 as a collaborative effort among prominent car manufacturers with the aim of constructing a network of High Power Charging (HPC) along European motorways. This initiative was designed to advance the concept of electric mobility — the use of vehicles powered by electricity instead of gasoline or diesel — across Europe and particularly for long-distance routes. For the high-profile companies involved in supporting IONITY, this project represented a once-in-a-lifetime opportunity requiring substantial investment.
This case study tells the story of how IONITY is working with EY professionals to realize its vision of operating a finance function that could be as smart, lean and agile as possible. Managed services are being used to optimize processes but, more than that, they are being used to motivate IONITY’s people.
Overview of the company
Electric mobility was initially perceived as a concept suitable only for big cities, and the time required to charge electric cars on the go was considered too long to build an attractive business model around it. Yet, IONITY, a leading player in the electric vehicle (EV) charging industry, defied these challenges and successfully established a thriving business.
According to Edelmann:
- IONITY has expanded its network of HPC stations over 2,200 points across 24 countries, spanning from Sweden to Gibraltar in only two years. These stations are strategically spread out over 500 charging points, ensuring convenient access for EV owners.
- The company has developed rapid charging capability, enabling EVs to quickly replenish their battery levels. In only the time it takes to finish a cup of coffee, an IONITY charging station can fill an electric vehicle with 50 kilowatt (kW) hours of green electricity . This rapid charging capability is made possible by the station’s impressive charging capacity of 350 kW.
- IONITY has achieved efficient charging times due to high charging capacities at HPC stations. Depending on the specific vehicle and prevailing season, a vehicle can be fully charged in as little as 20 to 30 minutes, compared to a traditional municipal charging station which typically takes four and half hours to fully charge a vehicle with the same quantity of electricity using an output of around 11 kW.
When put against consumer demand and IONITY's own ambitions, this is only the beginning. By 2025, more than 7,000 charging points are expected to be operational at over 1,000 locations. Through partnerships with cafes, restaurants, hotels and shopping facilities, IONITY charging stations will seamlessly integrate into the driver’s daily routine and offer more than just fast and efficient charging. Drivers can conveniently charge their vehicles while also engaging in activities such as shopping, grabbing a cup of coffee, or visiting friends and family. These stations will provide a unique customer experience that combines effortless charging with opportunities for errands, socializing and leisure.
IONITY’s expansion draws investment
IONITY continues to grow rapidly, says Edelmann “The best thing about it is that through our growth, we are contributing to climate-friendly mobility in Europe. This has made us increasingly interesting for other investors in recent years – even outside the automotive industry," he adds.
The company was established with the backing of major automotive manufacturers from the US and Europe. In November 2020, a couple of leading automakers from the Far East joined, and a year later, a leading asset management firm became the first non-automotive industry shareholder.
This partnership resulted in a further investment of €700m, highlighting the company’s growth and potential in the market.
“Numbers are only the beginning and reflect early impact. IONITY’s unyielding pursuit of speed, accountability, transparency, quality, efficiency and effectiveness sets us apart. These are the traits that most young companies strive for but rarely attain” Edelmann says.
Unique challenges
The finance and control departments of companies with the scope of IONITY are usually well-staffed and handle everything from annual financial statements to tax returns.
Even though IONITY has the backing of major automotive companies, it must remain agile, fast, and focused in a dynamic market. IONITY is subject to the same tax and accounting rules as every other company, but has to account for 24 different European countries. Every day, IONITY and Edelmann must meet around 330 reporting and compliance obligations. At IONITY, all of this is done with a minimum number of people.