LG Electronics is revving up its presence in the electric vehicle (EV) sector with the opening of its first EV charger facility outside South Korea, located in Fort Worth, Texas. This strategic move signals LG’s ambition to capture a significant share of North America’s burgeoning EV charging market.
Spanning an impressive 59,202 square feet, LG’s new factory boasts the capacity to produce over 10,000 chargers annually. The company has already commenced the manufacturing of 11-kilowatt
EV chargers and plans to scale up. They’re set to start assembling 175-kilowatt chargers in the first half of this year, followed by powerful 350-kilowatt chargers later in the year.
This expansion aligns with LG CEO William Cho’s commitment to electrification as a key growth driver. LG aims to reach $79 billion in sales by 2030, a significant jump from $51.4 billion in 2022. This goal underscores the importance of diversifying into emerging markets like EV charging and digital healthcare, especially as LG transitions away from declining sectors like mobile phones.
The U.S. EV market is ripe with opportunity, with more than 165,000 public EV charging ports available as of December 2023. President Biden’s ambitious plan to build at least 500,000 public chargers by 2030 further bolsters this market’s potential. LG’s entry into this space is timely, tapping into the rising demand for reliable and accessible EV chargers.
However, it’s not without challenges. The EV charging network expansion faces a classic chicken-and-egg dilemma: the slow uptake of electric vehicles due to concerns about charging infrastructure, and the hesitant deployment of more charging stations due to modest demand. Additionally, existing charging stations often face compatibility and functionality issues.
Despite these hurdles, government support has given LG the confidence to invest in this venture. “Establishing our EV charger production factory in Texas positions us to actively meet the growing U.S. demand for EV infrastructure,” says Jand Ik-hwan, President of LG Business Solution Company.
Texas offers strategic advantages for LG’s manufacturing hub, including access to existing facilities, logistics, and transportation networks. This choice aligns with LG’s broader goals and leverages the state’s robust industrial ecosystem.
Since its foray into EV charger development in 2018, LG has been proactive in expanding its capabilities. The acquisition of HiEV Charger, a South Korean EV battery charger maker, in 2022, is a testament to LG’s commitment to strengthening its position in this sector.
LG’s new manufacturing hub in Texas is more than just a production facility; it represents a pivotal step in the company’s journey towards a more sustainable and electrified future. As the demand for electric vehicles continues to rise, LG is well-positioned to play a significant role in shaping the EV infrastructure landscape, not just in the U.S. but globally. With its innovative technology and strategic foresight, LG is charging ahead in the race to power a greener, more sustainable transportation ecosystem.
