A new plant producing chargers for electric vehicle batteries opened Friday in Fort Worth, Texas less than two months after LG Electronics announced it will enter the U.S. charger market through its LG Business Solution’s USA division.
The new plant covers 100,000 square feet and will produce about 12,000 chargers annually, according to Mike Kosla, senior vice president of sales for LG Business Solutions.
While declining to release specific investment and employment numbers, “dozens of new high-tech jobs will be created,” said John Taylor, vice president of public affairs and communications for LG Electronics, in an interview.
The decision to place the new plant in Fort Worth made sense since the company already has a presence in the area, including a large distribution center, Kosla explained in an interview.
“We have already customer orders in-house and we are excited to say the factory is ready to ready to start producing level two chargers. In the spring we will be looking at producing level three fast chargers,” said Kosla.
The chargers LG produces are aimed solely at the commercial market that includes businesses, municipalities, and apartment complexes where residents with EVs do not have garages where they can install a home charger.
“The main, number one reason, was to help with the electrification of the United States. It’s a it’s a strong need,” explained Kosla as to the reason LG decided to jump into charger sales.
He cited research by Goldman Sachs and IHS Global insights indicating a 9% growth in electric vehicles in 2023, and an expected increase in EV use in the U.S. to 20% by 2025 and 50% by 2030.
“Probably from our standpoint of equal importance as we are a leader in all the major business-to-business verticals, whether it be quick serve restaurant, hotel, health care, travel, transportation, you name it,” added Kosla.
Some customers will buy chargers from LG, others will acquire them in different ways, with Kosla explaining “it’s going to vary relationship to relationship.”
Initially, the new plant will produce level two chargers which generally operate off 240 volt circuits, typical for a home charger. The LG level two chargers enable 11kW of output power through a standard SAE J1772 connector, also known as a J plug or type 1 connector.
Coming later this year, the company plans to begin producing level three DC chargers, a stand-type model with a connected power bank it says provides fast charging up to 175kW through CCS1 and NACS connectors. The Level 3 model will feature a large outdoor LCD touch-screen display that can serve multiple functions for various owners and use cases, according to an LG release.
Most EVs in the U.S. use CCS connectors however several automakers have decided to convert to NACS connectors which are able to connect to Tesla’s well developed supercharger network.
The South Korean company is already well-entrenched in North America. LG Energy Solution is the world’s largest producer of batteries for EVs and has invested billions of dollars in U.S. manufacturing, according to the company.
General Motors Co. and LG Energy Solution formed Ultium Cells, a joint venture to produce EV batteries in the U.S.
Chargers produced at its new plant in Fort Worth will be sold in North America. The company already builds them in South Korea but has plans to expand globally, including Europe at a later day, according to Kosla.
But right now, LG is focused on a fast start for its newest charger plant that will soon begin producing fast EV chargers.
“We have received our first orders and with many more to follow. We have numerous letters of intent,” said Kosla. “So the business was well on its way. We are looking forward to the factory opening and starting to make the product so we can start moving.”
