LG To Exit Solar Module Business

Citing Uncertainties In Global Solar Panel Industry, LG Electronics To Exit Space

LG To Exit Solar Module Business

A year after Japanese electronics company Panasonic said it is quitting solar PV production business, its South Korean peer LG Electronics has followed suit. The latter will instead focus on other growth sectors as energy storage systems and home energy management. (Photo Credit: LG)

  • LG Electronics says the group is exiting solar panel business and continue production till Q2/2022
  • It has cited reasons as impact of increasing material and logistics costs and severe supply constraints on its business for the move
  • Management said the focus will now be on other growth sectors including energy storage systems and home energy management

A comprehensive review of increasing material and logistics costs, along with severe supply constraints and their impact on its solar business has led the South Korean electronics manufacturer LG Electronics to announce it will leave the global solar panel business for good.

Instead, it plans to use its experience to concentrate on growth sectors including energy storage systems and home energy management. It will continue to produce solar panels at its Huntsville, Alabama in the US where it assembles modules till Q2/2022 to maintain adequate inventory for future service support.

LG produces high-efficient solar cells and modules in Korea and modules at its 550 MW Huntsville, US factory, which opened in 2019. In the January 2021 edition of our TaiyangNews Top Solar Module Efficiency Listing its n-type panel ranked third.

LG Business Solutions (BS) that operates the solar panel business will reorganize the portfolio around Information Technology (IT) and Information Display (ID). It plans to continue supporting the US solar customers ‘for years to come’ and honor the limited warranty with each product sold.

Affected employees will be accommodated in its other business and manufacturing units, and those leaving the company will be offered severance package.

A year back, Japanese electronics company Panasonic announced its plans to stop producing solar PV products at its factories in Malaysia and Japan, while continuing to sell modules under its brand name but manufactured by its manufacturing partners. While the company itself did not state any specific reason, a report by Nikkei Asia blamed it on fierce competition from Chinese rivals for Panasonic’s move (see Panasonic Exiting Solar PV Production Business).

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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