Amid a global electrification push, LG Electronics is moving into electric vehicle (EV) charging business as it acquired a South Korean EV battery charger developer. This move is the company's step to advance into EV charging solution industry.
LG Electronics has recently acquired 60% stake in AppleMango, as per The Star report. The acquisition was made jointly with GS Energy, an EV charging station operator, and GS Neotek, an IT provider, who took over 34% and 6% stakes, respectively.
The amount of the acquisition is not disclosed. The company said that the acquisition of AppleMango will allow them to take advantage of future business opportunities.
Future Plans of LG Electronics After the Acquisition
According to LG Electronics, within this year, they plan to put up an EV charging production line at the LG Digital Park in Pyeongtaek, which is 60km south of Seoul.
Furthermore, the company said that with the acquisition, LG aspires to strengthen its business portfolio along with the existing automotive electronics business "in the era of EVs."
AppleMango was established in 2019. Since then, the company has advanced technologies in producing slow and fast chargers. These chargers are for both household and commercial use.
"The EV charging market is expected to grow rapidly due to the surging demand for more eco-friendly vehicles." Paik Ki-mun, senior vice president of LG Electronics, said in a statement.
As automakers rapidly adopt battery-powered vehicles in their lineups due to stricter emissions regulations, the world's EV charging solutions business is expected to grow to $316 billion by 2030.
"Leveraging our know-how and experience in the B2B sector, we will offer customized, integrated vehicle charging solutions for diverse customers, enhancing the competitiveness of our existing and ensuring our readiness for future opportunities," Paik Ki-mun added, as cited by LG News.
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LG Electronics Focuses on its Growth Areas Such as EV
LG Electronics' move to acquire an EV charging company comes nearly a year after it shut down its loss-making mobile business. Since the shutdown, the company had focused on its growth areas such as electric vehicles, the internet of things (IoT) and B2B solutions.
With the acquisition, LG Electronics is set to use its expertise creating user-friendly interfaces. This action will make the EV charging experience in South Korea a pleasant and easy one for drivers.
In addition, according to the company, by transcending to EV charging business, it will pave way for them to create more synergy between EV battery development, energy storage systems, energy management solutions and chargers, as per TechCrunch report.
The EV charger production line that LG plans to establish at LG Digital Park in South Korea will provide customized EV charging solutions for private residences, shopping malls, hotels and public institutions.
However, LG did not specify whether it will continue selling AppleMango's chargers.
By setting up the LG Vehicle Component Solutions company in 2013, LG Electronics entered the EV industry.
To expand its EV business, LG Electronics also acquired Austria-based automotive lighting company ZKW in 2018. Meanwhile, in December 2020, it formed a joint venture with Magna International to manufacture e-motors, inverters, and onboard charges.
