Announced its entry into the electric car charging space with the acquisition of South Korean electric car battery charger developer AppleMango, as the race to produce everything related to electric vehicles is increasing globally.
AppleMango was founded three years ago in 2019. It has developed its own technology such as the slim and fast electric vehicle charger.
The company said the acquisition allows it to take advantage of future business opportunities. The acquisition came jointly with GS Energy, an electric vehicle charging station operator, and GS Neotek, an information technology provider.
LG said that this move allows it to create full-featured charging stations with an easy-to-use interface and real-time control and management.
In particular, the company will be able to take advantage of the dust- and water-resistant outdoor digital display technology.
“The electric vehicle charging market is expected to grow rapidly due to the increasing demand for more environmentally friendly vehicles,” said LG’s senior vice president. Leveraging our knowledge and experience in the B2B sector, we offer customized, integrated vehicle charging solutions to diverse clients, enhancing our current competitiveness and ensuring we are prepared for future opportunities.
LG acquired a 60% stake while GS Energy and GS Neotek acquired 34% and 6%, respectively. AppleMango will become a subsidiary of LG after the deal.
The two companies did not disclose the financial terms of the deal. But according to a local media report, the size of the acquisition is estimated at $7.8 million.
The move comes nearly a year after LG closed its loss-making mobile phone business to focus on its growth areas such as electric vehicles, the Internet of Things and B2B solutions.
The company is poised to leverage its expertise in creating user-friendly interfaces to make the experience of charging electric vehicles in South Korea fun and easy for drivers.
In addition, the company can create more correlation between the development of electric vehicle batteries, energy storage systems, energy management solutions and chargers by moving into the electric vehicle charging business.
LG accelerates its electric vehicle charging business
The company plans to set up an electric vehicle charger production line at its facility in Pyeongtaek, South Korea, by the end of this year.
It aims to provide customized charging solutions for electric vehicles to private residences, shopping malls, hotels and public institutions.
LG did not say whether it intends to continue selling AppleMango chargers. But AppleMango offers a wide range of electric vehicle charging solution technologies. From slow chargers to fast chargers for residential and commercial uses.
LG entered the electric vehicle industry in 2013 by creating the Vehicle Component Solutions Company. It also acquired Austrian-based automotive lighting company ZKW in 2018 to expand its electric vehicle business.
It formed a joint venture with Magna International in December 2020 to manufacture electric motors, inverters and chargers for automakers.