LG, headquartered in Seoul Electronics Inc. is withdrawing from the global solar panel market. The decision was approved yesterday by LG’s board in South Korea.
Competition with lower prices from Chinese rivals has made it tough for LG to compete.
John I. Taylor, senior vice president of LG Electronics USA Inc., explained the reason for Electrek by email:
The decision was based on factors such as rising material costs, rising logistics costs and supply chain constraints.
This announcement looks to the future as LG focuses on other high-value products and services such as energy storage systems and energy management solutions. These technologies complement LG’s energy-efficient product offerings, from heat pump clothes dryers and water heaters to advanced HVAC solutions to industry-leading Energy Star-certified appliances, to name a few. only a few.
We look forward to discussing these groundbreaking developments with you soon.
Panel production will stop this spring, and LG says it will continue to support its US solar customers by honoring all limited warranties.
The decision to halt solar manufacturing will impact approximately 160 employees and 60 contractors at LG’s corporate campus in Huntsville, Alabama. The company has been assembling solar panels there since 2018.
Thomas Yoon, President and CEO of LG Electronics North America, said in a statement:
We hope to be able to retain many of our talented and dedicated employees.
The company is meeting with US solar panel workers to identify potential opportunities within other LG business and manufacturing units. Employees who do not continue with LG will be offered transition support and severance packages commensurate with their tenure with the company.
If you own LG solar panels, you can access additional information here, or you can call LG’s Customer Support Center at 1-833-388-2121.
This announcement is a real shame, as LG Solar panels were ranked by independent comparison website SolarReviews in November as the #1 solar panel brand. LG primarily manufactured solar panels for the residential and commercial markets.
It’s also a concern at a time when the Biden administration is trying to expand domestic clean energy manufacturing and jobs.
We hope LG takes good care of both its Huntsville workers who lose their jobs and its customers who already own LG solar panels. We also look forward to seeing the company follow through on its stated intention to focus on energy storage and management.
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