LG Electronics Unveils Inaugural Electric Vehicle Charging Factory in Texas, USA
LG Electronics has marked a significant milestone by establishing its first electric vehicle (EV) charger facility outside South Korea, choosing Fort Worth, Texas, as its entry point into North America’s competitive EV charging market.
Spanning an impressive 59,202 square feet, the new EV charging station factory has the capability to produce over 10,000 chargers annually, according to LG’s statement on Monday. The company has commenced manufacturing 11-kilowatt EV chargers in Texas, with plans to assemble chargers of 175 kilowatts in the first half of this year, followed by 350 kilowatts later in the year.
This strategic move aligns with LG CEO William Cho’s commitment to “electrification” as a pivotal driver for mid and long-term growth, aiming for $79 billion in sales by 2030, up from $51.4 billion in 2022.
The timing is crucial, as LG estimates its 2023 full-year revenues for LG Electronics at KRW 84 trillion (approximately $63.6 billion at current rates), reflecting a marginal increase from 2022’s revenues of KRW 83.5 trillion.
With the mobile phone business behind it (LG exited the phone market in 2021), LG is actively exploring new opportunities in sectors like EV charging and digital healthcare.
Recognizing the potential in the U.S. EV market and the growing demand for EV chargers, LG is strategically positioning itself in this lucrative landscape.
As of December 2023, the U.S. boasted over 165,000 public EV charging ports, and President Biden has set a target of building at least 500,000 public chargers by 2030. However, challenges persist, with a market growth bottleneck due to a chicken-and-egg scenario: low EV purchasing rates due, in part, to concerns about insufficient charging points, and a slow rollout of charging points due to low demand.
Despite these challenges, government support for large-scale efforts gives LG the confidence to invest in such ventures.
Jang Ik-hwan, President of LG Business Solution Company, stated, “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 strategically chose Texas for its first EV charger factory due to the state’s advantageous existing facilities, coupled with robust logistics and transportation networks. Having delved into EV chargers since 2018, LG solidified its position in the EV charging business by acquiring HiEV Charger (formerly AppleMango), a South Korean EV battery charger maker, in 2022, facilitating the local production of EV chargers in South Korea.
