LG Energy to launch battery swapping services

LG Energy Solution Ltd., a South Korean rechargeable battery maker, has launched two in-house ventures to enter the battery swapping and energy aggregation (EA) markets.

The ventures, named KooRoo and AVEL, will power LG Energy’s advance into new growth areas centered on its battery business in a swift and efficient way, the company said on Wednesday.

KooRoo will operate battery swapping stations (BSS), at which a depleted battery pack of electric two-wheelers is replaced with a charged battery, instead of being recharged.

To do so, KooRoo will develop battery packs to be used at BSS. Then it will utilize the collected data to expand its footprint in the electric two-wheeler ecosystem.

AVEL will provide energy aggregation services, which bring together a group of companies or institutions to buy energy from a single or multiple developers.

Jeju Island, South Korea’s largest island, will be the first place where AVEL is introducing the service. The venture will also manage the procurement of renewable energy, utilizing energy storage systems (ESS).

Going forward, it will further develop the EA service to make accurate predictions of the amount of electricity generated from renewables, while efficiently managing and utilizing energy stored at an ESS.

LG Energy said that its in-house ventures will provide an opportunity for its employees to play a leading role in exploring new growth areas so that they can grow together with the company.

The company will provide full support for both ventures to build their relevant infrastructure. But they will be managed independently from LG Energy’s chief strategy officer in their first few years in business.

In case they split away from the parent company, LG will prepare generous reward packages.

Write to Hyung-Kyu Kim at khk@hankyung.com
Yeonhee Kim edited this article