Agree to Invest KRW300bn in EV Charging Infrastructure
Hyundai Motor Group and Lotte Group are forging an alliance to strengthen their electric vehicle (EV) charging infrastructure business.
The two groups plan to sign a contract within this month at the earliest to establish a special purpose corporation (SPC) to jointly carry out the superfast EV charging infrastructure business. KB Asset Management will join them in this contract. The three partners have agreed to invest a total of 300 billion won in the newly established joint venture.
The three companies' business model is to lease superfast EV chargers to charging companies through the SPC.
Accordingly, 5,000 ultra-fast chargers will be installed in major cities across the country by 2025. Joongang Control, a manufacturer of EV chargers acquired by Lotte, has decided to participate in the venture as a key charger supplier. Chargers will be installed at Lotte Group’s major distribution facilities nationwide, as well as at Hyundai Motor Group’s sales offices and service centers.
Experts say that this cooperation between Hyundai Motor Group and Lotte Group will serve as a great catalyst for the expansion of domestic charging infrastructure. According to the Ministry of Environment, most of the charging stations in Korea have slow chargers.
Hyundai Motor Group and Lotte Group are planning to take the lead in the EV charging market. Other major Korean business groups such as SK, LG, GS, Hanwha and LS are also actively entering the charging market. SK Group bought Signet V, a charger manufacturing company, in 2021. LG Group and GS Group jointly acquired Apple Mango this year.