LG Electronics has decided to withdraw from the electric vehicle (EV) charger market and proceed with the liquidation of its wholly owned subsidiary, HiEV Charger.
The move responds to what the company describes as structural changes in the business environment, including a prolonged slowdown in EV demand and increasing price competition.
According to South Korean media, all employees involved in the business will be reassigned to other departments within LG Electronics.
Despite the closure, the company confirmed that it will maintain after-sales services for its existing customers.
LG entered the EV charging market in 2022 by acquiring local manufacturer AppleMango, later rebranded as HiEV Charger, following initial research and development efforts that began in 2018.
The subsidiary launched its first products in 2023, offering a portfolio that included AC chargers and various DC fast charging solutions.
Initially focused on the domestic market, HiEV expanded its presence internationally by opening a production facility in Texas, United States, in January 2024.
Despite these developments, the business failed to meet internal performance targets.
In 2024, HiEV Charger posted revenues of 10.6 billion won (approximately €7.2 million), while recording an operating loss of 7.2 billion won. It also received a disclaimer of opinion in its audit report due to consecutive years of financial deficits.
LG Electronics CEO, Cho Joo-wan, had previously positioned the EV charging business as a key driver in the company’s strategy to reach 100 trillion won (around $70 billion) in annual revenue by 2030.
However, the company has now chosen to reallocate its resources to more stable and profitable sectors.
Going forward, LG will prioritize its Energy Solutions (ES) Business Division, which focuses on residential and commercial air conditioning systems, heat pumps, chillers, and data center cooling solutions.
This strategic shift reflects the company’s intention to strengthen its presence in sectors less affected by rapid technological changes and market volatility.
READ MORE
-
From Obligation to Opportunity: How Can CPOs Grow Through New Regulations?
Compliance is no longer just a sunk cost: ProperPhi reveals how to transform regulatory requirements into energy efficiency, added value for customers, and sustainable financial returns.
-
PowerGo launches dynamic charging prices in Spain
PowerGo launches dynamic electric vehicle (EV) charging prices in Spain, directly linked to hourly electricity market prices.
-
Save the date: The third edition of the mega event FES Iberia 2025 is here
On 24 June, Madrid will host FES Iberia 2025, the key event in the renewable sector. Featuring participation from leading companies, a notable presence of Latin American firms, Autonomous Communities, and exclusive panels on offtakers and Southern Europe, this edition is set to establish itself as the must-attend meeting for the energy transition.
