LG Electronics to Withdraw from EV Charger Business and Refocus on HVAC

LG Electronics to Withdraw from EV Charger Business and Refocus on HVAC

South Korea: LG Electronics has announced its decision to exit the electric vehicle (EV) charger business, citing declining profitability and a temporary slowdown in market demand. The decision comes three years after its entry into the sector through the acquisition of HiEV Charger, formerly known as Apple Mango. Despite efforts to expand, including entering the United States market, HiEV Charger recorded an operating loss of 7.2 billion won (approximately USD 5.2 million) last year and received a 'disclaimer of opinion' in its audit report due to consecutive years of significant deficits. The company stated that maintenance services for suppliers will continue without interruption as it winds down operations in this segment. 

LG Electronics will liquidate HiEV Charger, with employees from the EV charger division being reassigned to other areas within the company. Moving forward, LG will focus on its ES Business Division, which oversees residential and commercial air conditioners, chillers, heat pumps, and data centre cooling systems. The company aims to concentrate on sectors considered to offer more stable demand and reduced exposure to rapid technological shifts. This reallocation of resources is part of LG’s broader strategy to pursue growth in areas where it holds established capabilities and where long-term market potential remains consistent. 

Source: Business Korea