LG Electronics (LG) has taken a significant step in bolstering its position in the electric vehicle (EV) charging solutions market with the inauguration of its first EV charger production factory in the United States.
The EV charger facility, spanning 5,500 square meters, is strategically located in Fort Worth, Texas, and is geared towards meeting the growing demand for EV chargers in North America. With an anticipated annual capacity exceeding 10,000 units, this expansion marks LG’s foray into EV charger manufacturing outside its native South Korea.
The decision to establish the U.S.-based production site in Texas was based on multiple strategic considerations. The state offers the advantage of utilizing existing facilities, coupled with excellent logistics and transportation networks. Moreover, Texas is a hub for major operations in diverse industries, including automobile manufacturing and finance.
LG’s move aligns with the company’s commitment to electrification, as highlighted by CEO William Cho in 2023. This venture into the U.S. EV charging market positions LG to tap into rising local demand and explore new business opportunities, in line with the energy and environmental goals set by the U.S. government’s Inflation Reduction Act.
The Texas facility has commenced assembly of 11kW chargers, with plans to initiate the production of 175kW fast chargers within the first half of the year. Looking ahead, LG aims to introduce a 350kW ultra-fast charger in 2024, catering to the diverse needs of customers, particularly in commercial travel and long-distance transportation.
LG is swiftly gaining recognition as a reliable EV charger provider, thanks to its robust manufacturing capabilities, stringent quality control measures, and comprehensive after-sales service. The company’s emphasis on differentiated offerings, including control and advertising solutions, instills confidence that LG will continue to strengthen its market position over the mid- to long-term.
In addition to addressing the varied demands of businesses and facilities such as hotels, shopping malls, retail stores, gas stations, and parking garages, LG draws upon its extensive business-to-business (B2B) experience in the U.S. hotel TV and digital signage sectors. This valuable insight is expected to drive the expansion of LG’s EV charging solutions business in the United States.
The global EV charging market is poised for substantial growth, projected to reach USD 186 billion by 2030, according to global management consulting firm Roland Berger. This expansion is fueled by environmental regulations and the continuous progression of vehicle electrification.
Jang Ik-hwan, President of the LG Business Solutions Company, expressed the company’s dedication to meeting 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.”