LG Electronics Acquires AppleMango, Forays into EV Charging Business

LG Electronics announced on June 26 its foray into the EV charging solutions business by acquiring fellow South Korean EV charging firm AppleMango amid a global electrification push. About 60 per cent stake in AppleMango was bought by the Korean electronics major for an unspecified amount, with GS Energy and GS Neotek taking over 34 per cent and 6 per cent stakes in the company, respectively, to secure a new growth engine, the company said in a statement.

Established in 2019, AppleMango’s claim to fame is a slim, fast charger for EV charging. For LG, besides access to the market-leading charging tech, the deal will secure access to the necessary operational infrastructure from GS Energy and GS Neotek, who have an experience in operating EV charging stations.

This makes an economic sense as the world’s EV charging solutions market is expected to grow to 410 trillion won ($316 billion) by 2030 as carmakers rapidly adopt battery-powered vehicles in their lineups amid stricter emissions regulations. LG shared its plans to establish a EV charging production line at the LG Digital Park in Pyeongtaek, some 60 kms south of Seoul, within this year, reports a news agency. With the existing automotive electronics business “in the era of EVs,” LG aims to strengthen its business portfolio together with the portfolio of AppleMango, established in 2019. AppleMango has advanced technologies in manufacturing slow and fast chargers, both for household and commercial use.

In March, LG Energy Solution Ltd rolled out the plans to invest 1.8 trillion won ($1.48 billion) to set up a joint venture with Stellantis NV in Windsor, Canada. In October, LGES and Stellantis NV struck an electric vehicle (EV) battery production joint venture, targeting to start production by the first quarter of 2024 and aiming to have an annual production capacity of 40 gigawatt hours of batteries. LG Energy Solution said it plans to acquire stake worth 662 billion won in ES America to respond to demand from EV startups in the United States.

“Our joint venture with LG Energy Solution is yet another stepping stone to achieving our aggressive electrification roadmap in the region aimed at hitting 50% of battery electric vehicle sales in the US and Canada by the end of the decade,” said Carlos Tavares, Stellantis CEO.