The U.S. electric vehicle market is growing rapidly at an average annual rate of 65.5% from this year to 2020.

LG Electronics is establishing an electric vehicle parts factory in Michigan, USA.

LG Electronics plans to accelerate the expansion of its automotive parts business by directly producing electric vehicle components in Michigan, USA, where major automakers are concentrated, and by solidifying local partnerships.

In particular, the company plans to solidify its position in the global electric vehicle parts industry by targeting the rapidly growing U.S. electric vehicle market. According to market research firm IHS, the U.S. is the third largest electric vehicle market, along with China (257,929 units) and Europe (108,639 units), where 104,178 pure electric vehicles were sold last year. The average annual growth rate of the U.S. electric vehicle market is projected to reach 65.5% from this year through 2020.

■ Invest approximately $25 million in Hazel Park, Michigan to establish electric vehicle parts factory

LG Electronics is investing approximately $25 million (about 28.5 billion won) to establish an electric vehicle parts factory in Hazel Park, a suburb of Detroit, Michigan.

LG Electronics decided to establish production facilities by leasing a factory site and building in the region, taking into account synergies with the VC North America Business Center located in Troy, Michigan, as well as various incentives such as state government funding and hiring support. Hazel Park is located in the suburbs of Detroit, an industrial city in southeastern Michigan.

The electric vehicle parts factory in Michigan will have a total floor area of 215,000 square meters (㎡) and is scheduled to be completed within the first quarter of 2018. LG Electronics will produce battery packs for electric vehicles here, and plans to expand its product range to include major electric vehicle components such as motors.
■ Accelerating expansion of automotive parts business... It also won GM's 'Innovation of the Year' award.

LG Electronics is accelerating the expansion of its automotive parts business, which is being fostered as one of its key new growth businesses, through the establishment of this factory in Michigan.

LG Electronics’ Vehicle Components (VC) business unit, which is responsible for the automotive parts business, has been growing steadily since first disclosing its performance in 2015. It posted sales of 2.773 trillion won in 2016, a 51.3% increase from the previous year, and recorded sales of 1.759 trillion won in the first half of this year, a 42.7% increase from the same period last year.

In addition, LG Electronics has been recognized for its world-class electric vehicle component technology by supplying 11 types of key components, including drive motors, inverters, and battery packs, to GM’s all-electric vehicle, the ‘Chevrolet Bolt EV,’ which was launched in the U.S. at the end of last year and in Korea this year.

LG Electronics received the 'Innovation Award' along with LG Chem at the 'GM Supplier of the Year' event held by GM in March of this year, in recognition of its significant contribution to the commercialization of the 'Chevrolet Bolt EV'.

Michigan Governor Rick Snyder said, “I look forward to LG Electronics, a leader in next-generation automotive components such as electric and autonomous vehicles, building the future of the automotive industry together with Michigan.”

LG Electronics VC Business Division President Lee Woo-jong said, “The establishment of this factory will serve as an opportunity for LG Electronics to establish itself as the best partner for U.S. automakers preparing for the electric vehicle era.”