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LG pulls out of EV charger business after three years in 'strategic rebalancing'

Published: 22 Apr. 2025, 16:49 Updated: 22 Apr. 2025, 20:44

HiEV Charger electric vehicle charger lineup. From left: 100kW, 200kW, 7kW stand and 7kW wall-mounted models. [LG ELECTRONICS]

LG Electronics will pull out of the electric vehicle (EV) charging business just three years after entering the market as the prolonged “EV chasm” — a period of stagnant demand — and intensifying competition in the charging infrastructure sector weigh on profitability.

The company said Tuesday it had decided to terminate its EV charger business, which operates under its Eco Solution Business Division. “This is a strategic rebalancing decision in response to changes in the business environment,” said an LG Electronics spokesperson.

LG Electronics entered the market in 2022 by acquiring 100 percent of HiEV Charger, an EV charging specialist, in a joint investment with GS Energy and GS Neotek. The company aimed to ride the growing wave of EV adoption by developing and launching slow and fast chargers, with a goal of turning the business into a “unicorn” generating more than 1 trillion won ($703 million) in annual sales.

It installed chargers at Emart stores and made a push into the U.S. market last year. However, shifting market conditions led the company to withdraw from the sector.

HiEV Charger will undergo liquidation. All employees who had been working in the EV charger business will be reassigned to other divisions within LG Electronics. The company said it will continue to provide maintenance services for existing customers without disruption.

Going forward, the ES division will focus on the heating, ventilation and air conditioning business under a “selection and concentration” strategy. Product lines will include residential and commercial air conditioners, chillers, heat pumps and data center cooling.

Meanwhile, LG Electronics’ vehicle component solutions (VS) business is gaining traction globally, with major automakers recognizing its capabilities. The company announced Tuesday it had won the 2024 Best Value Innovation Award at Toyota North America’s annual supplier business meeting. Toyota North America evaluates its partners annually based on technology, quality, cost and supply capacity

This marks LG’s first time receiving the award. LG began supplying navigation boxes to Toyota in 2011 and has since maintained a longstanding partnership. Since 2019, the company has expanded its supply of advanced telematics solutions — automotive communication modules — particularly in North America, which accounts for 30 percent of Toyota Motor’s global sales.

LG Electronics’ telematics control units support 5G-based vehicle-to-everything communication and feature advanced capabilities including top-tier cybersecurity.

The company also earned the “Creativity Team Award” at this year’s Supplier of the Year awards hosted by General Motors.

“We will continue to strengthen our collaboration with global automakers by leveraging differentiated technologies that align with the evolution of the future mobility industry,” said Eun Seok-hyun, head of LG Electronics' VS unit.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY PARK HAE-LEE [[email protected]]