LG Electronics establishes heat pump research consortium in China

This picture shows LG Electronics officials and Chinese university representatives at the signing ceremony for the Chinese Consortium for Advanced Heat Pump Research at Harbin Institute of Technology on August 31 marking LGs completion of its global RD triangle for HVAC business expansion in Asia Courtesy of LG Electronics — LG Electronics officials and Chinese university representatives pose for a photo at the signing ceremony for the Chinese Consortium for Advanced Heat Pump Research at Harbin Institute of Technology on Aug. 31, 2024. Courtesy of LG Electronics

SEOUL, Sept. 2 (AJP) - LG Electronics has established a heat pump research consortium in Harbin, China, as part of its efforts to expand its presence in the heating, ventilation, and air conditioning (HVAC) market, which is crucial for AI and high-capacity data centers.

The launch of the Chinese Consortium for Advanced Heat Pump Research (CCAHR) marks the completion of LG's global research and development triangle for HVAC, following similar initiatives in Alaska, U.S., and Oslo, Norway.

CCAHR, which includes researchers from LG Electronics and three Chinese universities, will focus on developing high-performance HVAC solutions for extremely cold climates, utilizing the harsh winter conditions of Harbin and Mohe.

This initiative aligns with LG's business strategy emphasizing B2B acceleration, as presented by CEO Jo Joo-wan at the August Investor Forum.

The company is leading the high-efficiency, eco-friendly HVAC market through core component internalization and is also targeting the cooling system market for AI data centers.

LG is implementing a localized completion system for its HVAC business. The company operates five global air solution research labs and HVAC academies in 62 locations across 43 countries.

The global HVAC market is estimated to be $58.4 billion in 2023 and is expected to reach $61 billion by 2028, according to IBISWorld.

Lee Jae-sung, vice president of LG's air solution business, said the company aims to provide "differentiated solutions through next-generation heat pump technology specialized for major markets worldwide."

Candice Kim candicekim1121@ajupress.com