South Korean conglomerate LG Corporation said it planned to invest KRW100bn (US$88m) in Kakao Mobility Corporation, one of the country’s leading taxi-hailing firms, according to local reports.

The conglomerate said the reason for the investment was to facilitate the creation of synergies between some of its subsidiaries, particularly electric vehicle (EV) battery manufacturer LG Energy Solution and LG Electronics, and Kakao Mobility, with a view to generating new opportunities for growth in the mobility sector.

LG Energy Solution, estimated to be the world’s second-largest EV battery supplier, is looking to expand beyond battery manufacturing by offering aftersales services such as battery swapping, recharging and, eventually, recycling.

In 2019 LG Electronics announced a partnership with local energy company GS Caltex to create a network of EV charging stations. The two companies said they planned to build the stations within the GS Caltex network of petrol stations across South Korea.