In a significant move to bolster its presence in the electric vehicle (EV) charging market, LG Electronics (LG) has inaugurated its inaugural EV charger production facility in the US.
The state-of-the-art factory, spanning 5,500 square meters, is strategically situated in Fort Worth, Texas, with a primary focus on supplying chargers for the North American market.
Anticipated to achieve an annual production capacity exceeding 10,000 units, this facility marks LG’s first foray into EV charger manufacturing outside of South Korea, where a similar operation was established under its affiliated company HiEV Charger just last year.
Choosing Texas as the location for its US-based EV charger production, LG cited multiple strategic advantages, including the utilisation of existing facilities and the state’s robust logistics and transportation networks. Texas is also home to major operations in various industries, from automobile manufacturing to finance.
LG’s move into the U.S. EV charging market aligns with the company’s forward-looking vision, as highlighted by CEO William Cho in 2023, emphasising ‘Electrification’ as a major driver for rapid mid- to long-term growth. With a commitment to addressing the burgeoning local demand and exploring new business opportunities, LG is strategically aligned with key energy and environmental goals outlined in the U.S. government’s Inflation Reduction Act.
The Fort Worth factory has already commenced the assembly of 11kW chargers and is set to initiate the production of 175kW fast chargers within the first half of the year. LG has ambitious plans to introduce a 350kW ultra-fast charger in 2024, expanding its EV charger lineup to cater to diverse customer needs, particularly in commercial travel and long-distance transportation.
Positioning itself as a reliable EV charger provider, LG emphasises its manufacturing capabilities, quality control, and after-sales service to enhance its market position over the mid- to long-term. The company believes that its differentiated offerings, including control and advertising solutions, will contribute to the success of its EV charging solutions business.
Looking ahead, LG aims to tap into the varied EV charging demands of businesses and facilities, ranging from hotels and shopping malls to retail stores, gas stations, and parking garages, to drive future growth. Leveraging its B2B experience in the U.S. hotel TV and digital signage sectors, LG anticipates valuable insights that will aid in the expansion of its EV charging solutions business in the US.
The global EV charging market is poised for substantial growth, projected to reach $186bn by 2030, according to global management consulting firm Roland Berger.
The expansion of this market is driven by environmental regulations and the continuous progress of vehicle electrification. LG, with its strategic initiatives and commitment to sustainability, is well-positioned to play a pivotal role in this evolving landscape.
LG business solutions Jang Ik-hwan said: “By establishing our EV charger production factory in Texas, we will be able to actively respond to the rapidly growing demand for EV infrastructure in the U.S.
“LG is dedicated to delivering uncompromising quality and will offer customers reliable EV charging solutions that combine efficient charger units with advanced control systems.”
