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"LG Electronics Seizes Growth Opportunities in Electric Vehicle Charging Infrastructure"
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입력 : 2023.11.10 13:15
ㅣ 수정 : 2023.11.10 13:15
LG's Vehicle Component Solutions (VS) Division Emerges as a Key Revenue Driver, Expanding Focus to Electric Vehicle Charging Stations
SEOUL (news2day) - In a surprising turn of events, LG Electronics, led by CEO Cho Ju-wan, reported an impressive third-quarter consolidated revenue of KRW 20.7 trillion and an operating profit of KRW 9.967 trillion. Notably, the profit from the core home appliances sector more than doubled compared to the same period last year.
The Vehicle Component Solutions (VS) division, a strategic business unit for LG, achieved record-breaking results in Q3, with revenue reaching KRW 2.5035 trillion and operating profit hitting KRW 1.349 trillion. This stellar performance positions the VS division as a cornerstone for LG's overall growth, with expectations of reaching an annual revenue exceeding KRW 10 trillion for the first time this year.
With the company's focus on expanding its portfolio, LG Electronics is strategically tapping into the rapidly growing market of electric vehicle (EV) charging infrastructure. The global trend of increasing electric car adoption, with an estimated 14% of total new car sales being electric vehicles, has prompted LG to explore opportunities in the EV charging station sector.
Rapid Growth of EV Charging Infrastructure with Increasing Electric Car Sales
International Energy Agency (IEA) reports indicate a surge in electric car sales, with an expected record of 14 million units sold by the end of 2022, constituting 14% of all new car sales. This trend aligns with the steady growth of electric car sales in South Korea, reaching 162,987 units in 2022, as reported by the Korea Automotive Research Institute.
As electric car adoption expands, so does the need for a robust charging infrastructure. The global charging infrastructure market is projected to grow at an average annual rate of 27%, reaching approximately $128.13 billion by 2030, according to a report by accounting firm Samjong KPMG.
As of December 2022, South Korea had 19,408 electric vehicle charging stations, including 2,641 fast chargers and 17,344 slow chargers. In response to this growing demand, the government has outlined ambitious plans to increase the number of charging stations to 123,000 by 2030.
LG's Strategic Entry into the Electric Vehicle Charging Business
LG Electronics recognized the potential in the electric vehicle charging sector early on. In 2018, the company's Chief Technology Officer initiated the development of electric vehicle charging solutions. The acquisition of 'Apple Mango' (now known as High Bee Charger), a specialized electric vehicle charging company, in the late 2021 further strengthened LG's capabilities in charging technology and production.
Expanding its foothold in the EV charging business, LG Electronics recently collaborated with major retail giant E-Mart to install 100 kW fast chargers and 7 kW slow chargers in over 30 E-Mart locations nationwide.
The strategic partnership aims to enhance the overall customer experience, providing not only efficient charging solutions but also integrated cloud-based management systems.
This collaboration is seen as a significant step towards LG Electronics' commitment, as mentioned by CEO Cho Ju-wan in July, to nurture the electric vehicle charging business into a multi-trillion won industry.
The company's dedication to providing diverse services based on customer needs positions LG as a key player in the competitive EV charging market.
As part of its long-term plan unveiled in July, LG Electronics aims to leverage its superior manufacturing capabilities, global operations, and business-to-business (B2B) initiatives to foster the electric vehicle charging business on a mega-scale.
With a focus on delivering high-quality products, efficient after-sales service, and advanced solutions, LG Electronics is poised to expand its electric vehicle charging business not only in South Korea but also in North America and Europe.
LG Electronics, along with other major South Korean conglomerates such as GS, SK, Hyundai, Hanwha, and LS, is actively exploring opportunities in the burgeoning electric vehicle charging infrastructure market. The collaboration between LG and E-Mart is expected to serve as a benchmark for the industry, showcasing the integration of convenient charging solutions with advanced control systems.
In a statement, an LG Electronics spokesperson emphasized, "In the demanding field of electric vehicle charging, where reliability is crucial, we will leverage our manufacturing, quality, after-sales service, supply chain, and solution capabilities to expand the electric vehicle charging business globally."
As the global electric vehicle market continues to evolve, LG Electronics remains at the forefront, strategically positioning itself to drive innovation and shape the future of electric vehicle charging infrastructure.
By Soyeong Jeon / jsy@news2day.co.kr
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