LG Group revs up EV charging businesses to lead burgeoning sector

LG Group affiliates, notably LG Electronics Inc. and LG Uplus Corp., are entering the electric vehicle (EV) charging business in full force. 

Industry insiders told The Korea Economic Daily the South Korean conglomerate could be aiming to dominate the EV ecosystem, which encompasses battery production, charger manufacturing, as well as distribution and operation of the charging stations. 

GATHERING EXPERTS 

LG Uplus is preparing for an EV charging business led by its Chief Strategy Officer (CSO). 

The mobile network operator owned by LG Corp. applied for trademark rights for "Voltup" to the Korean Intellectual Property Office in June. 

The company described the nature of Voltup to be software for an app that provides geographic information for electric charging stations and for making reservations at the stations.

In February, the company recruited experienced employees to set up the supply of EV charging stations and develop strategies.

Industry insiders forecast LG Uplus to be interested in a charging station platform business.  

LG Electronics is also ramping up its human resources department in the EV charging sector. 

It is now hiring EV charging strategists for the B2B department. 

The electronics arm of the LG Group has been sporadically hiring business developers and engineers in the EV charging sector.

In June, the company acquired a 60% stake in the South Korean EV charging startup AppleMango.

LG Uplus subsidiary LG HelloVision Co. is providing installation and operation services for EV charging stations.

Industry insiders say the EV charging infrastructure in South Korea would need to grow drastically to meet the explosive demand. 

The EV charging stalls in South Korea amount to some 132,000 as of last month, according to the country’s Ministry of Environment. The figure is less than half of around 300,000 electric cars in distribution. 

The supply and demand discrepancy is equally dire outside the peninsula. 

Munich-based international management consultancy Roland Berger forecasts the global EV charging market to reach $55 billion next year and for the figure to skyrocket 491% to $325 billion by 2030.

PROFITABILITY CONCERNS

Analysts say LG Group is strategically moving to dominate the EV infrastructure. 

LG Energy Solution, Ltd. manufactures and sells EV batteries while LG Display Co. does the same for the cockpits for electric cars. 

If LG Electronics leads in EV charging stalls, LG Hello Vision operates charging services, and LG Uplus launches the charging service platform, then the LG Group will have all-around dominance in the ecosystem. 

In the overseas market, the cooperation between EV manufacturers and infrastructure firms is more lively than ever. 

The General Motors Co. joined forces with local EV charging firms such as ChargePoint, EVgo and Blink in April.

The Detroit-based automaker announced it will install about 40,000 charging stalls across the United States.

The move is widely thought to catch up to the rapid growth of Elon Musk-owned Tesla, Inc. 

An industry insider said, “The LG Group will collaborate closely with the EV industry to become a comprehensive service provider.” 

The biggest risk to enter the EV charging industry is fierce competition. 

There are more than 350 firms in South Korea’s EV charging industry and profitability, especially in North America, remains a concern. 

The aforementioned EV charging firms such as ChargePoint have not yet turned profitable.

Write to Jeong-Soo Hwang at hjs@hankyung.com
Jee Abbey Lee edited this article.