LG Energy Solution and Lotte Rental Join Forces for Electric Vehicle 'BaaS' Business

Continuous Diagnosis and Evaluation Certification for Electric Vehicles, Mobile Emergency Charging, and Professional Maintenance Services
Joint Development of Electric Vehicle Specialized Services with 'Lotte Rent-a-Car,' the No.1 Brand in the Electric Vehicle Rental Industry

Kim Hyun-soo, President of Lotte Rental (left in photo), and Kim Jong-hyun, President of LG Energy Solution, are taking a commemorative photo at the signing ceremony on the 30th. Photo by LG Energy Solution

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution, the No.1 electric vehicle battery company, and Lotte Rental, which owns the No.1 electric vehicle rental car brand 'Lotte Rent-a-Car,' have joined forces to collaborate on the electric vehicle 'BaaS (Battery As A Service)' business. The 'BaaS' business refers to a service that encompasses the entire lifecycle of batteries, from manufacturing to utilization and reuse.

On the 30th, LG Energy Solution announced that it signed a 'business agreement for discovering new services in electric vehicle-based mobility and batteries' with Lotte Rental at Park One in Yeouido, Seoul. The signing ceremony was attended by Kim Jong-hyun, President of LG Energy Solution, and Kim Hyun-soo, President of Lotte Rental, among others.

Through this agreement, LG Energy Solution will leverage its accumulated battery-related technology to develop various electric vehicle specialized services with Lotte Rental. Additionally, these services will be provided to customers of Lotte Rental's rental car brand 'Lotte Rent-a-Car' to enhance user convenience as well as increase the residual value of electric vehicles.

One specific service cooperation plan is the continuous diagnosis and evaluation certification service for electric vehicles. LG Energy Solution will provide real-time information on the current battery capacity, safety status, and future degradation predictions, and issue battery evaluation certificates based on this data.

Through this, Lotte Rental will strengthen battery safety diagnostics and provide customers with real-time diagnostic information, securing higher profitability when selling used electric vehicles in the future. Lotte Rental plans to purchase up to 4,000 electric vehicles this year by issuing the industry's first overseas ESG bonds. In addition, they will develop mobile emergency charging services for electric vehicles and specialized electric vehicle maintenance services.

The two companies plan not only to develop these services but also to jointly promote electric vehicle battery rental businesses and the recycling of aged electric vehicle battery ESS (Energy Storage Systems), actively leading the establishment of a virtuous cycle ecosystem for electric vehicles.

Through this collaboration, LG Energy Solution will strengthen its BaaS business capabilities, while Lotte Rental will secure differentiated customer services for the recently expanding electric vehicle rental market, as well as specialized charging and repair service capabilities for electric vehicles.

Kim Jong-hyun, President of LG Energy Solution, said, "The BaaS business is a core capability that must be secured to expand the electric vehicle market and enhance the social value of batteries," adding, "We will actively cooperate with Lotte Rental, the No.1 electric vehicle holder, to provide the best services to customers."

Meanwhile, LG Energy Solution, as a leading electric vehicle battery company, has been steadily promoting the BaaS business that manages the entire lifecycle of electric vehicle batteries to create new added value. In July last year, it signed an MOU with GS Caltex to develop battery-specialized services using big data, and in February this year, it signed an MOU with Hyundai Motor, Hyundai Glovis, and others for services related to the utilization of used electric vehicle batteries.

This content was produced with the assistance of AI translation services.