LG Electronics has made a significant move by opening its first electric vehicle (EV) charger facility outside of South Korea. The new factory, located in Fort Worth, Texas, marks the company’s foray into the competitive EV charging market in North America.
Key Takeaway
LG Electronics has established its first EV charger facility outside of South Korea in Fort Worth, Texas, signaling the company’s entry into the competitive North American EV charging market. The move aligns with LG’s strategic goal to explore new business opportunities and cater to the increasing demand for EV chargers in the U.S.
Capacity and Production
The newly established EV charging station factory covers an area of 59,202 square feet and has the capacity to manufacture over 10,000 chargers annually. LG has already commenced the production of 11-kilowatt EV chargers at this facility. Additionally, the company plans to start assembling chargers with a capacity of 175 kilowatts in the first half of this year, followed by 350 kilowatts later in the year.
Strategic Expansion
Last year, LG CEO William Cho emphasized the company’s commitment to ‘electrification’ as a primary driver for mid and long-term growth. With an eye on new business opportunities, LG aims to achieve $79 billion in sales by 2030, up from $51.4 billion in 2022. The expansion into the U.S. EV market aligns with LG’s strategic goal to explore new business avenues and cater to the increasing demand for EV chargers in the U.S.
Market Potential and Opportunity
The U.S. currently boasts over 165,000 public EV charging ports, and President Biden has set a target to build at least 500,000 public chargers by 2030. Jand Ik-hwan, the President of LG Business Solution Company, expressed that the establishment of the EV charger production factory in Texas will enable the company to actively address the rapidly growing demand for EV infrastructure in the U.S.
Why Texas?
LG chose Texas as the location for its first EV charger factory due to strategic reasons. The state offers the advantages of utilizing existing facilities along with robust logistics and transportation networks, making it an ideal base for LG’s expansion into the EV charging market.
Business Development and Acquisitions
LG has been involved in EV charger development since 2018 and further strengthened its position in the EV charging business by acquiring HiEV Charger, previously known as AppleMango, a South Korean EV battery charger maker, in 2022. This strategic move has enabled LG to bolster its EV charging business and commence the production of EV chargers in the U.S.
