LG Electronics Inc., in partnership with GS Group, is advancing into the electric vehicle charging service market by acquiring AppleMango Co., a South Korean EV charger maker, amid a global electrification push.
LG, which exited its loss-making mobile phone business last year, has been looking for new growth drivers, including the infotainment and electric powertrain businesses.
As part of its future mobility push, the home appliance giant said on Sunday it has signed a contract to acquire a 60% stake in AppleMango, while GS Energy Corp. and GS Neotek Co. will purchase 34% and 6% of the company, respectively.
Following the deal, the EV charging system maker will become an LG Electronics subsidiary.
The value of the deal wasn’t known, but industry watchers said the three companies likely paid a combined 10 billion won ($7.8 million) for the 100% stake in AppleMango.
Established in 2019, AppleMango has technology in manufacturing slow and fast chargers for household and commercial use.
LG Electronics said it plans to build an EV charger production line at the LG Digital Park in Pyeongtaek, some 60 km south of Seoul, by the end of the year.
GS Energy aims to turn its gas stations into EV charging stations Through the partnership with the GS companies, LG said it expects to create synergy as the energy-focused group is striving to turn its nationwide gas stations into EV charging stations.
With the acquisition, LG said it would strengthen its business portfolio together with its existing automotive business.
LG Electronics has been fostering its automotive electronics business to enhance its presence in the future mobility market since the company set up a vehicle component division in 2013. The company later expanded the division into a vehicle components solutions (VS) unit covering infotainment technology.
In April of this year, LG said its joint venture with Canada’s auto parts maker Magna International Inc., LG Magna e-Powertrain Co., broke ground for a factory to produce EV components in Mexico to meet growing demand for eco-friendly automobiles in North America.
In 2018, LG Electronics acquired Austria-based automotive lighting company ZKW Group, which counts German premium carmakers such as Mercedes Benz, BMW, Audi and Porsche as its clients.
More recently, LG has also hired Yang Woong-chul, former vice chairman of Hyundai Motor Group in charge of the automaker’s research and development projects, as the board chairman of LG Magna e-Powertrain and LG Group’s VS business adviser.
Hyundai Motor's EV charging station E-pit OTHER BIG FIRMS JUMP INTO EV CHARGING MARKET
Other big Korean companies are also advancing into the EV charging service market.
Hanwha QCELLS Co., a Hanwha Group unit, said in May it is entering the EV charging business under a newly launched brand, Hanwha Motiev.
LS Corp. has said that it and E1 Corp., the gas-producing unit of LS Group, will jointly establish LS E-Link, an electric vehicle charging service company.
Hyundai Motor Co., which already operates its EV charging station, E-pit, in April signed a business cooperation pact with Lotte Group and KB Asset Management to establish a special purpose company to further expand its EV charging infrastructure across the country.
The world's EV charging infrastructure market is expected to grow from $55 billion in 2023 to $325 billion by 2030, according to industry estimates.
Write to Shin-Young Park and Il-Gue Kim at nyusos@hankyung.com In-Soo Nam edited this article.
