LG Withdraws from Electric Vehicle Charger Market Due to Global Demand Decline
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Synopsis
In a significant strategic shift, LG Electronics has decided to exit the electric vehicle charger market due to ongoing global demand stagnation. The company will liquidate its HiEV Charger division while ensuring maintenance services for existing clients. This move allows LG to refocus on its HVAC business.
Key Takeaways
- LG Electronics is exiting the EV charger market.
- HiEV Charger will be liquidated, and employees reassigned.
- The decision is due to global demand stagnation for EVs.
- LG will continue maintenance services for existing clients.
- Focus will shift to HVAC growth.
Seoul, April 22 (NationPress) LG Electronics announced on Tuesday its decision to withdraw from the electric vehicle (EV) charging sector, attributing this move to an extended period of stagnation in global demand for EVs.
The company’s charging division, HiEV Charger, will be dissolved, with all personnel reassigned to different departments within LG Electronics, as reported by Yonhap news agency.
Despite this exit, the firm will maintain uninterrupted maintenance services for its current clientele.
LG ventured into the EV charging arena in 2022 by purchasing HiEV Charger, previously known as AppleMango, following initial research and development efforts that began in 2018.
Since its entry, LG has provided charging solutions in South Korea, including chargers at Emart retail locations, and made strides into the U.S. market by inaugurating a production facility in Texas in January 2024.
This retreat aligns with LG Electronics' strategic shift to prioritize growth in its heating, ventilation, and air conditioning (HVAC) division.
Previously, LG Electronics' CEO Cho Joo-wan had highlighted the EV charger segment as a crucial component of the company’s vision to reach 100 trillion won (US$70.1 billion) in sales by 2030.
In the past year, LG partnered with ChargePoint, a top supplier of EV charging solutions in North America, with the aim of expanding its global presence in the EV charging sector. ChargePoint oversees over 306,000 active ports across North America and Europe.
This collaboration was anticipated to unlock additional business prospects for LG Electronics on a worldwide scale, leveraging ChargePoint’s extensive network and superior charger management solutions.
This strategic decision is part of LG Electronics' larger ambition to achieve 100 trillion won ($72.5 billion) in sales from business-to-business operations by 2030, with a focus on promising growth sectors, including the EV charging market.
