SEOUL - LG Electronics (LG) has once again strengthened its position as a major player in the electric vehicle (EV) component business solutions. Closing the first half of 2022, LG stated that it has successfully secured orders totaling KRW 8 Trillion, to provide the best in-vehicle experience to global car manufacturers.
LG Electronics has partnered with various global car manufacturers including Mercedes-Benz AG, Groupe Renault and General Motors to provide P-OLED IVI systems to all of their clients' electric car products and also to expand their portfolios to a more comprehensive level. LG's EV component solutions business continues to grow rapidly through three core business sectors: LG Vehicle component Solutions (VS) Company, ZKW Group and LG Magna e-Powertrain.
Acquired by LG in 2018, the ZKW Group offers market-leading vehicle headlight technology, and also partners with global clients including BMW, Mercedes-Benz AG, Audi and Porsche. Meanwhile, the LG Magna e-Powertrain is expanding its global production base, adding a third manufacturing facility in Ramos Arizpe, Coahuila, Mexico after building 2 other existing factories in Incheon, South Korea and Nanjing, China. Construction has started on a land area of 25,000 square meters and the factory is expected to open in 2023. The plant in Mexico will be used as a place to produce key components such as engines and inverters for General Motors' latest generation EV.
In the first half of this year, the value of orders for LG's EV component solutions exceeded the total accumulated value of all existing orders in 2021 (KRW 60 Trillion) by an increase of 13%. LG expects that the accumulated orders placed on its EV components business by the end of 2022 will exceed KRW 65 Trillion.
In the midst of declining vehicle production due to lack of stock of automotive semiconductors and other global supply problems, LG EV showed a positive performance where consolidated sales for its components rose by 24% compared to last year and reached sales of up to KRW 6.7 Trillion. (LM)