Another One Bites the Dust- LG to Exit EV Charger Business Amid Weak Demand and Price Pressure

LG Electronics has announced that it will exit the electric vehicle (EV) charger business, just three years after entering the market. The decision to wind down the business comes as a result of prolonged stagnation in demand and growing price competition within the sector. This move is part of a broader strategic realignment aimed at refocusing the company’s efforts on its heating, ventilation, and air conditioning (HVAC) business, which remains a key growth driver for LG’s eco solutions division.

An official from LG explained that the company’s decision was driven by several factors, including a "protracted demand slowdown"—referred to as the “chasm”—and intensifying competition on pricing. As a result, LG will begin the liquidation process for HiEV Charger, its wholly owned subsidiary responsible for EV charging equipment production. The company has also confirmed that all employees involved in the EV charger business will be reassigned to other divisions within the company.

Despite ceasing its production of new EV chargers, LG has committed to continuing maintenance and support services for existing customers, ensuring that there will be no disruption for clients who have already implemented LG’s charging infrastructure.

High Expectations

LG initially entered the EV charger market with high expectations, viewing it as a key pillar of its business-to-business (B2B) portfolio. The company began researching and developing EV charging technologies in 2018 and acquired HiEV Charger—formerly AppleMango—in 2022. LG launched its charging solutions at domestic locations like E-Mart stores and others, hoping to build a strong presence in the growing EV sector.

The company’s CEO, Cho Joo-wan, had previously outlined a bold vision for the EV charging business, aiming to turn it into a trillion-won business by 2030, as part of LG’s overarching goal to reach 100 trillion won ($70 billion) in revenue. At the beginning of 2024, LG established a charger production base in Texas and formed a partnership with ChargePoint, the leading EV charging service provider in North America. The partnership involved the operation of six types of slow and fast chargers in both domestic and North American markets. Furthermore, LG had set an ambitious goal of securing 8% of the U.S. fast charger market by 2030, aspiring to become a global top-tier player in the EV charging industry.

Losses Mounting

However, despite these aspirations, HiEV Charger has not been able to meet expectations, reporting two consecutive years of significant financial losses. In 2023, the subsidiary posted a modest revenue of 5.9 billion won but suffered an operating loss of 7 billion won. The losses continued into 2024, with 10.6 billion won in revenue and an operating loss of 7.2 billion won, forcing the company to reevaluate its position in the market.

LG's exit from the EV charger business reflects the growing challenges in the EV charging market, where competition is fierce, and price pressures are increasing. The company’s pivot toward its HVAC business demonstrates a shift in focus, as it seeks to strengthen its position in other high-growth sectors.

As the EV market continues to expand, LG’s decision serves as a reminder of the volatility and challenges of emerging industries. While the company will no longer produce new EV chargers, its commitment to customer support ensures that those who have adopted LG’s technology will not be left in the lurch.

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