LG to Shutdown US Solar Module Manufacturing Plant

  • L.G. is set to exit the solar module business.
  • The company is looking to focus on energy storage and home management systems.
  • L.G. is estimated to have a 14% solar module market share in the U.S.

In June, L.G. is set to stop production and operations at its 550MW solar module assembly systems plant in Alabama. This comes as the company announced that it would be closing down its solar business. The Huntsville plant, which was completed in 2019, is one of the largest module manufacturing facilities in the U.S.

L.G. noted that the increased price of materials and logistics costs was instrumental in shutting down operations. Instead, L.G. says it will focus on developing energy storage and home management systems.

The South Korean company last November announced a partnership with Sunverge to work on a residential virtual plant project (VPP) with customers in Northern and Central California. According to both companies. The project will explore ways to aggregate intelligent and dynamic load control so solar/energy storage can be aggregated as dynamic multi-service and multi-asset VPPs. L.G. believes that this will help utilities transition to more resilient and flexible distribution grids.

Analysis from Roth Capital Partners indicates that L.G. supplies 14 per cent of U.S. residential solar modules. Its move to the energy storage business has been bolstered by recent activities, including supplying the battery for Vistra’s Moss Landing Energy Storage Facility in California. L.G. provided over 4,500 TR1300 battery racks for the installation.

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