LG Electronics to exit solar module business citing supply chain concerns

Facebook
Twitter
LinkedIn
Reddit
Email
LG’s Mono Neon panel range. Image: LG Electronics.

LG Electronics has confirmed it is to exit the solar module manufacturing business and shutter its assembly plant in Alabama, US.

The decision, approved by the consumer electronics major’s board yesterday and confirmed by a press note from the company’s US office, followed what it described as a “comprehensive review” of the impact of soaring material and logistics costs on top of supply constraints on its solar business.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

LG said it would continue to lean on the renewable energy experience gathered by concentrating instead on sectors including energy storage and home energy management.

Module production is to be wound down from this spring before ending in Q2 2022, affecting around 160 employees and a further 60 contract workers at the company’s assembly plant in Alabama.

Modules produced at the Alabama facility from this week are to be earmarked for serving existing customers, with LG stating that it would honour existing product warranties and support customers in the US “for years to come”.

Thomas Yoon, president and CEO at LG Electronics North America, said the business intended to retain “many” of those workers. The business is to meet with workers to identify opportunities in other manufacturing units.

In a note issued to clients earlier today (23 February), investment bank ROTH Capital said it estimated LG held a ~14% share of the US residential solar market, suggesting the company’s exit could be a “source of friction” for module supply moving forward.

While LG’s statement confirmed the fate of its US facility, the company has yet to clarify whether solar manufacturing projects in Korea, including the company’s PV cell production facilities would be similarly shuttered. The company has yet to respond to requests for clarification by PV Tech on this matter.

27 June 2024
9am BST
FREE WEBINAR -This special webinar will take a deep dive into the latest PV ModuleTech Bankability Ratings pyramid, capturing the relative bankability status of the top 70-80 PV module suppliers globally. In addition to revealing the latest ranking of global PV module suppliers, PV Tech’s Head of Research, Finlay Colville, will show the depth of analysis and commentary included within the report for module suppliers. A key output from the webinar will be to learn which PV module suppliers have moved up the rankings pyramid in recent years and why this growth has been achieved. Conversely, some of the companies that have fallen down the rankings will be discussed, in particular those suffering from market-share losses and financial problems.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.

Read Next

Sponsored
June 21, 2024
PV Tech speaks to Autowell about some of its successes in recent years, and how it plans to expand its footprint into new markets.
June 20, 2024
Greater supply chain independence is a priority for companies in the solar sector, according to Hardeep Singh at Intersolar Europe 2024.
June 20, 2024
A study exploring the feasibility of resurrecting PV manufacturing in Germany and Europe more widely has identified an eight-cent-per-watt cost gap between modules produced in China and those produced locally.
June 20, 2024
Installed solar PV capacity in Germany is expected to stabilise at 22GW per year from 2026 onwards, according to a report from the German Solar Association (BSW-Solar).
June 20, 2024
Ensuring effective legislation, but not getting bogged down in bureaucracy, could make or break the EU’s Net Zero Industry Act (NZIA), which is set to come into effect in 2026.
June 19, 2024
A leading German solar distributor has predicted “crazy” ongoing pricing pressures in Europe as the PV industry continues to face huge product oversupply and competition prompted by the easing of the recent energy crisis in Europe.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia