The Accelerating Electrification Supply Chain in Europe

The electrification of the automotive industry is reshaping Europe’s industrial landscape, driven by stringent emissions regulations, consumer demand for sustainable mobility, and strategic investments by key players. At the forefront of this transformation are industrial giants like Schaeffler, BorgWarner, and Siemens, whose innovations in motor technology, AI integration, and hybrid systems are creating compelling investment opportunities. This analysis examines how these firms are redefining the electrified mobility value chain and why their European-focused strategies position them as critical enablers of the continent’s green transition.

Schaeffler: Scaling Charging Infrastructure and AI-Driven E-Mobility

Schaeffler has emerged as a pivotal player in Europe’s electrification push, combining infrastructure development with advanced manufacturing. The company recently partnered with SolarEdge to deploy 2,300 EV charging points across Europe by 2030, starting with installations at its German headquarters in Herzogenaurach [3]. This initiative aligns with Schaeffler’s broader goal to install 3,000 charging points in Europe as part of its global sustainability program, reflecting a strategic bet on decentralized energy solutions [1].

Beyond infrastructure, Schaeffler’s E-Mobility division reported 9.7% revenue growth in the first half of 2025, driven by increased production of electrified vehicles in Europe and the Americas [1]. The company’s acquisition of Vitesco Technologies in October 2024 further solidified its position in electric drive systems, enabling it to showcase integrated motion technologies at events like CES 2025 [3]. Additionally, Schaeffler’s new technology center in Germany—equipped with 15 laboratories—highlights its commitment to R&D in electrification and AI-driven manufacturing [4].

BorgWarner: Thermal Management and Integrated Drive Systems

BorgWarner’s focus on thermal management and high-voltage systems is addressing a critical bottleneck in EV performance. The company recently secured a contract to supply battery cooling plates to a major German automaker, leveraging extruded aluminum profiles to optimize heat transfer in next-generation EVs [1]. This collaboration, spanning over 30 years, underscores BorgWarner’s deep expertise in solving thermal challenges for European OEMs.

Simultaneously, BorgWarner’s integrated drive module (iDM) for a European OEM consolidates electric motors, gearboxes, and power electronics into a compact unit, enhancing efficiency and reducing vehicle weight [4]. The company’s 800V heater technology, designed for premium EVs, also reflects its alignment with industry trends toward higher voltage architectures to improve energy efficiency [2]. These innovations position BorgWarner as a key supplier for automakers navigating the complexities of electrification.

Siemens: Grid Transformation and AI-Enhanced Production

Siemens is playing a dual role in Europe’s electrification ecosystem: expanding EV charging infrastructure and modernizing energy grids to support renewable integration. The company has deployed over 100,000 EV chargers globally, including a significant share in Europe, and recently acquired Altair Engineering to bolster its AI and simulation capabilities for industrial electrification [3]. This move enhances Siemens’ ability to optimize energy systems using AI-driven tools, such as reinforcement learning for grid management and multi-agent systems for virtual power plants [2].

In Germany, Siemens is expanding its electrification production capabilities to align with the continent’s shift toward clean energy [2]. Its leadership in commercial EV charging solutions—particularly for heavy vehicles—further cements its role in scaling infrastructure for logistics and public transport [4]. By bridging the gap between EV adoption and grid readiness, Siemens is addressing a systemic challenge for Europe’s green transition.

Investment Implications and Strategic Opportunities

The electrification supply chain in Europe is being redefined by companies that combine hardware innovation with software-driven efficiency. Schaeffler’s charging infrastructure and AI-enabled production, BorgWarner’s thermal and high-voltage solutions, and Siemens’ grid and charging technologies collectively address the technical, infrastructural, and systemic hurdles of mass EV adoption.

For investors, these firms represent high-impact opportunities in a market projected to grow exponentially. Schaeffler’s expansion into China’s intelligent industry fund [2] and BorgWarner’s North American production plans [3] also highlight their global scalability, while their European operations remain central to regulatory and market dynamics. Siemens’ AI-driven energy systems, meanwhile, offer long-term value as Europe integrates renewable sources into its power networks.

Conclusion

Europe’s electrification transition is no longer a distant vision but a rapidly unfolding reality, driven by industrial leaders who are redefining mobility, energy, and manufacturing. Schaeffler, BorgWarner, and Siemens are not only supplying components but also enabling the systemic shifts required for a sustainable future. For investors, their strategic moves—ranging from AI integration to hybrid transmission innovation—underscore the transformative potential of the electrified mobility value chain.

Source:
[1] Schaeffler expands its charging infrastructure worldwide [https://www.schaeffler.com/en/media/press-releases/press-releases-detail.jsp?id=88040521]
[2] Electric Highvoltage Heaters Market Outlook 2025-2032 [https://www.intelmarketresearch.com/electric-high-voltage-heaters-market-8912]
[3] SolarEdge Partners With Schaeffler to Deploy 2300 EV [https://www.stocktitan.net/news/SEDG/solar-edge-announces-strategic-partnership-with-schaeffler-for-ev-10krhqn2q3un.html]
[4] Europe Electric Axle Drive System Market 2025–2033 [https://www.linkedin.com/pulse/europe-electric-axle-drive-system-market-20252033-a0hjf/]