A new factory to make battery chargers for electric vehicles opened in Fort Worth, Texas, on Friday, less than two months after LG Electronics announced it would enter the U.S. charger market through its LG Business Solutions U.S. unit.
Mike Kosla, senior vice president of sales at LG Business Solutions, said the new 100,000-square-foot factory will produce about 12,000 chargers per year.
John Taylor, LG Electronics’ vice president of public affairs and communications, said in an interview that “dozens of new high-tech jobs will be created” while declining to disclose specific investment and employment figures.
Khosla explained in an interview that the decision to locate the new facility in Fort Worth made sense because the company already has a presence in the area, including a large distribution center.
“We have received internal customer orders and we are happy to say that the factory is ready to start production of level 2 chargers. This spring, we will consider production of level 3 fast chargers.” Kosla said.
LG makes the chargers only for the commercial market, including businesses, municipalities and apartment complexes where residents with electric vehicles don’t have garages where they can install home chargers.
“The main, primary reason is to help electrify America. There’s a strong need,” Kosla said, explaining LG’s decision to get into charger sales.
He cited research from Goldman Sachs and IHS Global Insights that shows electric vehicles will grow 9% by 2023, and U.S. electric vehicle usage is expected to increase to 20% by 2025 and 50% by 2030.
“Maybe it’s just as important from our perspective because we’re the leader in all the major business-to-business verticals, whether it’s quick service restaurants, hospitality, healthcare, travel, transportation, you name it,” Khosla added.
Some customers will buy their chargers from LG, others will buy them differently, Kosla explained “it will vary from relationship to relationship.”
Initially, the new facility will produce Level 2 chargers, which typically operate on 240-volt circuits, which is typical for home chargers. The LG Level 2 charger achieves 11kW of output power via a standard SAE J1772 connector (also known as a J-plug or Type 1 connector).
Later this year, the company plans to begin production of Level 3 DC chargers, a vertical model It is said that through the connected power bank, it can provide up to 175kW of fast charging through CCS1 and NACS connectors. According to a release from LG, the Level 3 model will feature a large outdoor LCD touch screen display that can provide multiple functions for different users and use cases.
Most electric vehicles in the United States use CCS connectors, but some automakers have decided to switch to NACS connectors, which can connect to Tesla’s well-established supercharger network.
The Korean company has deep roots in North America. LG Energy Solution is the world’s largest producer of electric vehicle batteries and has invested billions of dollars in U.S. manufacturing, according to the company.
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Chargers produced at the new Fort Worth plant will be sold in North America. Khosla said the company already produces the products in South Korea but plans to expand globally later, including in Europe.
But for now, LG is focusing on the quick start of its latest charger factory, which will soon begin producing fast EV chargers.
“We have already received the first orders, and there will be more to come. We have a lot of expressions of interest,” Khosla said. “So business is going well. We’re looking forward to opening the factory and starting production so we can hit the ground running.”
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