LG Electronics' U.S. Tennessee plant has surpassed 10 million units in cumulative production. Following its rise to the top market share in the U.S. laundry appliance market through local production, the company is expanding its role as an advanced manufacturing hub leveraging artificial intelligence (AI) and robotics.
LG Electronics announced on the 15th that it held a commemorative event for achieving 10 million units in cumulative production of laundry appliances at its U.S. Tennessee state production corporation on the 13th (local time).
Since starting washing machine production at the Tennessee plant in November 2018, LG Electronics expanded its product lineup to include dryers in 2022 and WashTowers in 2023. To date, the company has invested approximately $500 million, securing an annual production capacity of 1.55 million washing machines and 700,000 dryers, for a total of 2.25 million units. This represents an increase of about four times compared to 2019.
The expansion of local production has led to increased market share in the U.S. According to market research firm Trackline, LG Electronics' market share in the U.S. washing machine market by sales revenue rose from 17.2% in 2018 to 23.3% last year. During the same period, dryer market share also increased from 17.4% to 24.1%, securing first place for both product categories.
Logistics efficiency has also improved. In the past, it took more than 10 weeks to supply products from overseas production bases in Korea, China, and Southeast Asia to U.S. stores, but products made at the Tennessee plant can be supplied in about one week. This reduces the burden of ocean freight costs and tariffs while enabling a response to global supply chain uncertainties.
LG Electronics is also utilizing the Tennessee plant as a physical AI demonstration hub. The plant employs approximately 300 industrial robots and has achieved an automation rate of about 70% by applying smart factory technologies such as AI and digital twins. In 2023, it was selected as a "Lighthouse Factory" by the World Economic Forum (WEF), becoming the first home appliance factory in the U.S. to receive this designation.
Recently, the company has introduced the robot "LG CLOiD" into its production line to verify tasks such as transporting washing machine top panels and aligning and loading drainage pumps. The plan is to advance physical AI technology by augmenting and synthesizing data collected on-site at the Seoul Yangjae Data Factory for robot learning, and then applying the learning results back to the production site.
The company is also strengthening local customized product development. Representative examples include front-loading washing machines designed with North American consumers' body types in mind to make it easier to remove laundry, and laundry appliances equipped with pet care functions for pet furniture.
Baek Seung-tae, Senior Vice President and Head of the Home Appliance & Air Solution Business at LG Electronics, said, "The Tennessee plant has achieved 10 million units in cumulative production as a result of LG Electronics' laundry appliances consistently being recognized by North American customers." He added, "Based on differentiated products and AI-driven manufacturing innovation, we will further solidify our leadership in the North American market."
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