LG Electronics Refocuses on HVAC Amid Strategic Shift
South Korea: LG Electronics is scaling back its energy storage system (ESS) business after nearly a decade to focus on its expanding heating, ventilation, and air conditioning (HVAC) operations. The company’s Eco Solution Business Division recently restructured the ESS unit, renaming it the ESS Business Support Task Force to prioritise contract fulfilment and maintenance services. ESS technology, which stores electricity for efficient energy distribution, faced increasing competition from Chinese manufacturers, prompting LG’s decision to reduce its activities in this sector. The strategic shift aligns with LG’s goal of increasing its business-to-business revenue share to 45% by 2030.
To support its HVAC growth, LG Electronics established a dedicated ES Business Division in 2023 to become a global leader in air solutions. The company is also leveraging artificial intelligence (AI) technologies, recently partnering with Microsoft to develop sustainable cooling systems for AI data centres. This pivot underscores LG’s commitment to aligning its priorities with global trends in energy efficiency and AI-driven innovation. While the company reduces its presence in the ESS market, it aims to maintain service quality and focus its efforts on emerging opportunities in HVAC.
Source: Korea Business Wire