LG Electronics has announced a new acquisition of AppleMango Co., Ltd that will enable the company to create fully-featured charging stations boasting a user-friendly interface and real-time control/management.
In a press statement, the company noted that the acquisition is expected to accelerate the growth of its EV charging solution business and enable it to take advantage of future business opportunities.
LG’s acquisition, which was made jointly with GS Energy, an EV charging station operator, and GS Neotek, an IT provider, will help it integrate the charger development technology from AppleMango with its existing EV charging management system.
“The new acquisition will help LG to become an integrated solutions provider, bringing together its new charger development capabilities and existing in-house-developed EV charging management system,” the company noted in the press statement.
LG Electronics’ BS (Business Solution) Business Headquarters, which is in charge of the B2B business, plans to foster the electric vehicle charging solution business as a future driver. If it has focused on R&D for charging control systems, it is planning to develop electric vehicle chargers by internalizing Apple Mango’s R&D capabilities.
LG Electronics plans to build an electric vehicle charger production line at LG Digital Park in Pyeongtaek-si, Gyeonggi-do within this year and expand its supply to homes, shopping malls, hotels, and public institutions.
“Established in 2019, AppleMango has developed proprietary technologies and systems, including a slim, fast charger, to meet the rising global demand for EV charging solutions.
In addition to the company’s market-leading charging tech, LG will secure access to the necessary operational infrastructure by working closely with GS Energy and GS Neotek. Both GS companies have considerable experience in operating EV charging stations and related businesses.”
“The EV charging market is expected to grow rapidly due to the surging demand for more eco-friendly vehicles,” said Paik Ki-mun, senior vice president of LG Electronics Business Solutions Company. “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 future opportunities.”
LG Electronics acquired a 60% stake while GS Energy and GS Neotek took over 34% and 6%, respectively, in AppleMango, which will become a subsidiary of LG Electronics following the deal. The companies did not disclose the financial terms of the deal. According to a local media report, the acquisition size is estimated at $7.8 million (10 billion KRW).
This comes nearly a year after LG Electronics shut down its loss-making mobile business to focus on its growth areas such as electric vehicles, the internet of things (IoT), and B2B solutions.
LG Electronics’ BS (Business Solution) Business Headquarters, which is in charge of the B2B business, plans to foster the electric vehicle charging solution business as a future driver. If it has focused on R&D for charging control systems, it is planning to develop electric vehicle chargers by internalizing Apple Mango’s R&D capabilities.
LG Electronics plans to build an electric vehicle charger production line at LG Digital Park in Pyeongtaek-si, Gyeonggi-do within this year and expand its supply to homes, shopping malls, hotels, and public institutions.
LG Electronics has secured a stable supplier of electric vehicle charging solutions with this acquisition. GS Energy is continuously expanding its electric vehicle charging service business by launching G-Connect, a joint venture for electric vehicle charging service with GNTel, a domestic charging company last year.
LG Electronics started supplying electric vehicle charging control systems to GS Caltex in 2020. Currently, 130 chargers installed at 80 GS Caltex charging stations nationwide are using LG Electronics’ charging control system.
With this share purchase, LG Electronics will advance into the electric vehicle charging solution business in addition to the electric field business such as VS Business Headquarters, ZKW, and LG Magna e-Powertrain.
