One of the technology giants based in South Korea LGopened a factory in the USA to produce special chargers for electric vehicles.
The company itself explained this important investment in detail: “LG Electronics (LG) expanded its electric vehicle (EV) charging solutions infrastructure by opening its first EV charger manufacturing factory in the United States in Fort Worth, Texas, with a new 5,500 square meter facility. Thus, LG is expected to have an annual capacity of over 10,000 units in the North American market. The factory attracts attention as it is LG’s first EV charger production facility outside South Korea. Last year, the company launched an EV charger manufacturing operation under its subsidiary HiEV Charger. LG chose to locate its US-based EV charger manufacturing plant in Texas for many strategic reasons, such as the ability to utilize existing facilities. The state also has excellent logistics and transportation networks and hosts major operations of companies in various sectors, from automobile manufacturing to finance.
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While announcing the company’s future vision in 2023, LG CEO William Cho stated that “Electrification” will be an important driver of medium and long-term rapid growth. LG’s entry into the US electric vehicle charging market will allow the company to meet growing local demand and explore new business opportunities. Strategically and philosophically aligned with many of the energy and environmental goals outlined in the U.S. government’s Inflation Reduction Act, the sustainability-focused company is committed to strengthening its electric vehicle charging business and has begun plans to grow its presence worldwide, including in Asia and Europe.
LG has started assembling 11kW chargers at its Texas factory and will begin production of 175kW fast chargers in the first half of the year. LG also aims to launch a 350kW ultra-fast charger in 2024 and expand its EV charger lineup to meet the diverse needs of customers, especially those operating in areas such as commercial travel and long-distance transportation.
The company is quickly gaining a reputation as a reliable EV charger provider thanks to its manufacturing capabilities, quality control and after-sales service. LG is confident that its EV charging solutions business will continue to improve its market position in the medium and long term by emphasizing its differentiated offerings, including control and advertising solutions.
Additionally, LG plans to tap into the diverse EV charging demands of various businesses and facilities, such as hotels, shopping malls, retail stores, gas stations, and parking lots, to support future growth. LG’s B2B experience in the US hotel TV and digital signage sectors provides valuable insight that is expected to help the company expand its EV charging solutions business in the US.
The global EV charging market is expected to reach US$186 billion by 2030, according to global management consultancy Roland Berger. The expansion of the market is driven by several factors, including the ongoing implementation of regulations aimed at protecting the environment and the continued advancement of vehicle electrification.
Jang Ik-hwan, President of LG Business Solutions Company, said: “By establishing our EV charger manufacturing factory in Texas, we will be able to actively respond to the rapidly growing demand for EV infrastructure in the United States. “LG is committed to providing uncompromising quality and will offer customers reliable EV charging solutions that combine efficient charging units with advanced control systems.”