LG Electronics has acquired AppleMango, a South Korean developer of electric vehicle (EV) battery chargers, as the race to produce electric vehicles intensifies globally. The acquisition, made jointly with GS Energy, an EV charging station operator, and GS Neotek, an IT provider, will allow LG to seize future business opportunities, the company said.
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“The EV charging market is expected to grow rapidly due to the increasing demand for more environmentally friendly vehicles,” said Paik Ki-mun, senior vice president of LG Electronics in a statement. “By leveraging expertise and experience in the B2B sector, we will offer customized, comprehensive vehicle charging solutions for diverse customers, enhancing the competitiveness of our existing ones and ensuring our readiness for future opportunities.”
LG Electronics acquired a 60% stake, while GS Energy and GS Neotek took 34% and 6%, respectively, in AppleMango, which will become a subsidiary of LG Electronics after the deal. The companies did not disclose financial terms of the deal. According to local media reports, the size of the acquisition is estimated at $7.8 million (KRW 10 billion).
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The move comes nearly a year after LG Electronics shut down its loss-making mobile phone businesses to focus on its growth areas, such as electric vehicles, the internet of things (IoT) and B2B solutions.
LG Electronics is ready to leverage its expertise in creating user-friendly interfaces to make the EV charging experience in South Korea enjoyable and easy for drivers. In addition, by moving into the EV charging business, LG can create more synergy between the development of EV batteries, energy storage systems , energy management solutions and chargers, the company said.
The giant plans to set up an EV charger production line at LG Digital Park in South Korea by the end of this year, aiming to provide customized EV charging solutions for private homes, shopping malls, hotels and public institutions. While LG did not say whether it plans to continue selling Apple’s Mango chargers, the acquired company brings a wide range of EV charging solution technologies to the deal, from slow chargers to fast chargers for home and business use.
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LG Electronics entered the EV industry in 2013 by establishing LG Vehicle Component Solutions. It also acquired Austria-based automotive lighting company ZKW in 2018 to expand its EV business. It formed a joint venture with Magna International in December 2020 to manufacture electronic motors, inverters and onboard charging.
Information source: techcrunch.com
