The Big Business Move LG Is About To Make
Electronics giant EV is about to make a pivotal business move my making a major foray into the electric charing stations sector.
This article is more than 2 years old
Electronics giant LG is getting into the EV business with the acquisition of AppleMango – a company specializing in electric vehicle chargers. The deal, which was jointly made with GS Energy and GS Neotek, will allow the South Korean firm to take advantage of future business opportunities. The strategic move, combined with the company’s expertise and experience in B2C and B2B segments, will also enable it to create fully-featured charging stations showcasing a user-friendly interface with real-time control and management.
In a statement on the company’s website, Senior Vice President of LG Electronics Business Solutions Company Paik Ki-mun said the EV charging market is expected to grow rapidly due to surging demand for more eco-friendly vehicles. “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 business and ensuring our readiness for the future,” he said.
According to TechCrunch, LG Electronics acquired a 60% stake in AppleMango while GS Energy and GS Neotek took over 34% and 6%, respectively. As such, AppleMango will become a subsidiary of the Yeouido-dong headquartered firm following the deal. Although the companies did not disclose any financial details, the acquisition is estimated to be worth around $7.8 million. Interestingly, the move comes almost a year after the electronic giant shut down its loss-making mobile business to focus on electric vehicles, the internet of things (IoT), and B2B solutions.
The electronics company plans to set up a production line for its electric charging stations at LG Digital Park in South Korea by the end of the year. It aims to provide customized EV charging solutions for private residences, shopping malls, hotels, and public institutions. Although the tech giant did not say whether it intends to keep selling AppleMango’s chargers, the acquired company brings a wide range of charging solution technologies – from slow to rapid chargers for residential and business use.
In addition to AppleMango’s proprietary tech, which includes a slim fast charger, LG has secured the necessary parts to develop and supply EV batteries and related products like energy storage and management systems. The company is also strengthening its EV charging solution business by leveraging its exceptional digital signage technologies – specifically, its IP-rated outdoor digital display with a sturdy, dust- and water-proof enclosure, Yahoo News reports.
LG Electronics entered the EV industry in 2013 by setting up a company called LG Vehicle Component Solutions. To expand its EV business, it also acquired the Austria-based automotive lighting company ZKW in 2018. Additionally, the tech firm embarked on a joint venture with Magna International in December 2020 to manufacture e-motors, inverters, and onboard charges.
Since then LG has been supplying EV charging control systems to South Korean oil refiner GS Caltex. The company currently boasts 130 EV sockets installed at 80 stations across the region. Meanwhile, AppleMango was established three years ago (in 2019) and has developed exclusive tech systems to meet the rising global demand for electric vehicle charging solutions.
