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by IANS |
Seoul, April 22 (IANS) LG Electronics said on Tuesday it will exit the electric vehicle (EV) charger business, citing prolonged global demand stagnation in the EV market.
The company's EV charger-manufacturing subsidiary, HiEV Charger, will be liquidated, and all employees involved in the business will be reassigned to other divisions within LG Electronics, reports Yonhap news agency.
The company added that it will continue to provide maintenance services to existing clients without disruption.
LG entered the EV charging market in 2022 by acquiring HiEV Charger, formerly known as AppleMango, after initiating early research and development in the segment in 2018.
Since then, the company had offered charging solutions in South Korea, including chargers at Emart retail stores, and expanded into the U.S. market last year, opening a production plant in Texas in January 2024.
The decision to withdraw comes as LG Electronics has refocused its efforts to prioritise growth in its heating, ventilation and air conditioning (HVAC) business.
LG Electronics CEO Cho Joo-wan had previously identified the EV charger business as a key growth driver in the company's vision to achieve 100 trillion won (US$70.1 billion) in sales by 2030.
Last year, LG Electronics partnered with ChargePoint, the leading supplier of charging solutions for electric vehicles in North America, to expand its EV charging business on a global basis. ChargePoint manages more than 306,000 active ports across North America and Europe.
LG Electronics said the partnership was expected to help the company explore further business opportunities on a global scale through ChargePoint's expansive network and industry-leading charger management solution.
This move was part of LG Electronics' broader strategy to achieve 100 trillion won ($72.5 billion) in sales from business-to-business operations by 2030 by focusing on future growth areas, including the EV charging business.
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