LG withdraws from the global PV module market! Manufacturing plant shuts down in June

After being approved by the South Korean board of directors on February 22, LG Electronics announced that the company will withdraw from the global solar module manufacturing business.

LG Electronics said increased material and logistics costs and severe supply constraints were the main reasons for the decision to halt solar module manufacturing.

It is reported that LG's 550MW solar module plant in Huntsville, Alabama, will cease production by June 2022. The Alabama facility, which began producing modules in 2018, may be the second-largest crystalline silicon solar module manufacturer in the United States.

LG said it would assist the plant's 160 employees and 60 contract workers to find work in other LG businesses. Huntsville is also home to LG's technical call center and service training center.

The company primarily produces solar modules for the residential and small commercial markets. Last October, the company introduced a new all-black solar module with "gapless technology" rated at 405W.

In the most recent "EnergySage Solar Market Report", LG was recognized as the third most cited solar module brand in the U.S. residential market, behind Panasonic and REC. Industry analyst firm Roth Capital Partners said LG accounts for 14 percent of U.S. residential solar module supply.

Last year, LG joined other U.S. module makers in asking the Biden administration to extend Section 201 tariffs on imported solar modules. For U.S. players, tariffs are seen as a way to support U.S. manufacturing by providing an opportunity to fight cheap imports. Biden did extend the tariffs for four years, but granted exemptions for bifacial modules.

Bifacial modules are mainly used in large-scale ground power projects, and their tariff exemption means that bifacial modules can still enter the United States at a lower price than traditional modules produced domestically for the residential market, putting local residential suppliers at a  disadvantageous position. Chatter on social media suggests this could be another reason why LG decided to get out of thesolar module manufacturing business.

While solar module production is coming to an end, LG said it will continue to support its U.S. solar customers and honor a limited warranty on every unit sold. Going forward, LG will shift its focus to a "new era of sustainable development" through energy storage systems and home energy management.

Thomas Yoon, president and CEO of LG Electronics North America, said in a release, "While exiting the solar module business, LG is focusing on products and services that can have a greater impact, and sustainability is a core business principle of LG Electronics. , we have been evaluating how LG can unlock its potential, create greater value and support our vision of a better life for all."