According to The Korea Economic Daily Global Edition,

Stocks of electric vehicle (EV) battery charging infrastructure providers are expected to gain momentum in line with the projection that the EV market will grow at an annual average of about 30 percent by 2030.

According to multiple industry sources on Sunday, South Korean conglomerates, including SK Group, LG Group, Hyundai Motor Group, and GS Group, are actively engaged in the EV charging infrastructure business by leveraging existing business sites such as charging stations and parking lots.

The business entities are aggressive in seeking merger and acquisitions as they believe that timely investment is essential.

According to the market research firm Precedence Research, the world’s EV charging infrastructure market size was expected to grow to $417.3 billion by 2030.

SK Group is at the forefront, with its affiliates including SK signet Inc, an EV charger producer, and SK E&S Co., which provides charging services in partnership with parking lots, venturing into the EV charging business.

SK signet was founded in 2021 when SK Group acquired Signet EV, a global charging company, for 293 billion won ($228.9 million).

The company is listed on the Konex market and its stock price has risen by about 37 percent this year to reach 55,000 won from 40,200 won per share.

Signet EV holds a leading position in the U.S. EV ultra-fast charging market, accounting for 91 percent of the fast charger sales and 82 percent of exports last year.

SK signet announced last week that it decided to adopt the North American Charging Standard, a charging standard used by Tesla Inc.

“The U.S. Inflation Reduction Act (IRA) is expected to drive rapid expansion of fast chargers eligible for charger subsidies in the U.S.,” said Kim Hak-joon, an analyst at Kiwoom Securities Co. “Securing technological advantages in fast charging has become crucial for the companies in the rally.”

SK networks Co., a major mobile device distributor in Korea, acquired 53 percent stake in charging infrastructure operator SS Charger and launched SK electlink.

As the country’s largest private operator of fast chargers, SK electlink operates 2,000 units nationwide. SK networks invested in the fast charger company Everon to become its second-largest shareholder with 14 percent of its stake.

SK E&S acquired U.S. EV charging company EverCharge in 2021 and has offered charging services in partnership with its parking service provider Parking Cloud.

LG Electronics Inc. and LG Uplus Corp. are also active in the business.

LG Electronics established a charger production line at LG Digital Park in Pyeongtaek, Gyeonggi Province, and enhanced its charger manufacturing capabilities by acquiring Apple Mango last year, a company that specializes in slow and fast chargers.

Earlier this year, LG Uplus took over the EV charging business from LG HelloVision Corp. and launched a new charging app dubbed Bolt Up.

GS Connect, a subsidiary of GS Energy Corp, has solidified its position as a charging service provider. By the end of last year, GS Connect had installed 20,000 chargers nationwide and aims to increase that number to 70,000 by 2025. GS Connect operates the electric vehicle charging app Gcharger.

LS Group has invested in EV charging platforms through its leading affiliate LS Electric Co. Shares of LS Electric Co. rose 34 percent this year.

By Park Yoon-ye and Han Yubin





Source: The Korea Economic Daily Global Edition (Jun 19, 2023)