During the roundtable dialogue among senior administration officials and industry CEOs, LG applauded the government’s major investments in driving demand through tax incentives and rebates but cited the lack of awareness and familiarity about the benefits of heat pump technology as a major barrier to market adoption.

Text of CEO Yoon’s prepared remarks follows:

“LG already makes millions of heat pump-enabled products. All of our HVAC systems, from residential mini-splits to large-rooftop commercial units, are 100% electric and employ heat pump technology. LG also is a key player in the supply chain as a provider of compressors for other manufacturers’ heat pump systems.

“Having a secure and resilient supply chain that ensures access to components and raw materials is critical to successful domestic manufacturing. We all are grappling with labor shortages. Another major supply chain roadblock involves logistics, and we urge the federal government to continue its efforts to reduce shipping costs and port congestion.

“Government incentives, at the federal, state, and local levels, will encourage and expand domestic manufacturing. As we briefed the DOE last month, LG is finalizing plans to establish a new manufacturing base in the U.S. for HVAC products that are key elements of heat pump based home comfort solutions.

“In the near future, LG plans to produce indoor products that are part of the heat pump system in the U.S. for the first time. Soon thereafter, we are planning to produce the heat-pump outdoor units as well.

“From our perspective, the bigger issue is not supply but demand. We applaud the government’s major investments in driving demand through tax incentives and rebates. However, lack of awareness and familiarity about the benefits of heat pump technology is a barrier to market adoption. For contractors, LG is planning to leverage its training academies across the country to educate and train technicians. But the supply of qualified installers is limited and perhaps there are ways government can help address this shortage and support more training.

“Getting consumers to embrace heat pumps also is a big marketing challenge. That is where trusted brands with deep, data-driven consumer insights like LG can play a major role. Consumers want to know their system will be reliable; energy efficient; and, most of all, cost-effective. LG seeks to help consumers embrace the entire home energy ecosystem — electrification; battery storage; Energy Star appliances; and, of course, heat pump-enabled comfort systems.

“Recognizing their climate, economic, and consumer benefits, LG has been expanding heat pumps beyond HVAC systems. LG now also offers heat pump water heaters and heat pump clothes dryers. With these products, along with our electric ranges, induction cooktops, and energy storage systems, LG is leading the way in electrification, a major part the decarbonization movement.

“At LG, we see heat-pump products as integral parts of the green, smart home ecosystem, complementing connected appliances and, most importantly, integration of energy storage and energy management with advanced software and platforms. The market transformation enabled by heat pump technologies will be accelerated by delivering on the long-awaited promise of the smart home, coupled with today’s emphasis on a zero-carbon lifestyle.”

For more information, visit www.lg.com.