LG Electronics is exiting the electric vehicle (EV) charger business, citing ongoing stagnation in global EV demand and intensifying price competition as the main reasons for the shift. The company has confirmed plans to dissolve its EV charger subsidiary, HiEV Charger, which was launched in 2022, and reassign staff from the division to other departments within the company.
The company has not yet issued an official statement regarding the closure, but reports from South Korean media indicate that LG will continue to provide maintenance and customer service to existing clients.
LG entered the EV charger sector in 2022 with the acquisition of South Korean charging infrastructure manufacturer AppleMango. In 2023, HiEV Charger began launching a range of products, from basic AC units to more advanced DC high-power chargers. Initially focused on the South Korean market, the division expanded its presence into the United States, setting up a production facility in Texas.
Despite the early investments, the division struggled to meet ambitious growth targets. Cho Joo-wan, CEO of LG Electronics, had previously regarded the EV charger business as a key driver for long-term growth, with initial projections suggesting a revenue target of 100 trillion won (approximately €61.5 billion) by 2030. However, in 2024, HiEV Charger reported a revenue of just 10.6 billion won and incurred an operating loss of 7.2 billion won, falling significantly short of the company’s expectations.
Source: koreatimes.co.kr, koreaherald.com, yna.co.kr
