“Without the localization of power modules, there is no sovereignty for electric vehicles”
From a ‘charging station competition’ to an ‘OS competition’
Efforts to domestically produce key components that determine the performance and safety of prompt chargers for electric vehicles are gaining momentum. This comes as Chinese manufacturers have secured 90% of the domestic market share and concerns are growing over reliance on foreign suppliers for the stability of charging infrastructure. Both the government and private sector are now strategizing to reclaim the “heart” of fast chargers with domestic technology.
As of February 10, 2026, fast chargers equipped with LG Innotek power modules are being assembled at the EVSIS (a charging subsidiary of Lotte Innovate) plant in Cheongju, Chungcheongbuk-do, and are awaiting delivery to public charging stations managed by the Ministry of Environment. The power module is a core component that constitutes the inverter, converting alternating current (AC) to direct current (DC) in fast chargers, and is critical in determining charging speed and energy efficiency.
LG Innotek established a mass production system for power modules utilizing silicon carbide (SiC) power semiconductors at its Gwangju plant after initiating localization efforts in September 2022. The chargers produced in collaboration between LG Innotek and EVSIS were the first to pass quality evaluations conducted by the Korea Testing Laboratory (KTL) last year. Following LG Innotek-EVSIS, performance tests are currently underway at KTL for chargers equipped with domestically produced power modules from SoluM-Hyundai Kefico consortium and two other companies.
○Lost Ground Due to Focus on ‘Cost-Effectiveness’
The European Union Institute for Security Studies (EUISS) released a sobering report last month, revealing the deep penetration of Chinese influence into the heart of the European energy system. The report specifically highlighted the Volt Typhoon, a Chinese hacking group capable of paralyzing power systems, and urged immediate preparation against “digital Trojan horses” threatening energy security.
Prior to this, the U.S. Department of Energy (DOE) and the Cybersecurity and Infrastructure Security Agency (CISA) announced in 2025 that backdoors – undisclosed communication devices – were discovered in some Chinese-made solar inverters. This discovery confirmed existing concerns about potential security vulnerabilities.
These growing security concerns surrounding Chinese products are now extending to electric vehicle chargers, which are directly connected to the power grid. According to industry sources and the Ministry of Climate Change and Environment, over 90% of the inverters used in fast chargers installed in South Korea rely on Chinese-made power modules. There are even reports that some Chinese power modules are being falsely marketed as domestically produced.
While domestic brands like Hyundai and Kia have managed to maintain a 57% market share in electric vehicle sales as of last year, the charging infrastructure supporting them is heavily dependent on Chinese components. This is attributed to extensive subsidies from the Chinese government and a strong track record built within the world’s largest domestic market. These factors have enabled Chinese companies to achieve price competitiveness and diversify their product lines, including liquid-cooled and bidirectional models, leaving little room for domestic competitors.
“The Chinese government provides subsidies across the entire spectrum, from compound power semiconductors to power modules and charging station operators (CPOs),” said one industry official. “Currently, Chinese power modules dominate the domestic market, but Chinese companies are increasingly manufacturing entire chargers themselves. If this trend continues, there is a risk that the entire charging market could be taken over.”
○Preventing Dependence on Data and Control Rights
The domestic CPO market has undergone significant consolidation, shrinking from approximately 300-400 companies to around 40 today. This restructuring is attributed to a price competition driven by reliance on inexpensive Chinese power modules, coupled with accumulated communication errors and operational issues. While Chinese power modules are affordable, they lack adequate co-development of next-generation models and sufficient after-sales service (A/S) support.
With annual electric vehicle sales exceeding 200,000 units, the charging infrastructure is transitioning from a simple installation competition to a stage where control of core components and software determines industrial competitiveness. Chargers are evolving from mere power supply devices into “smart nodes” that exchange real-time information with the power grid and regulate energy flow. A Ministry of Climate Change and Environment official explained that the industry is entering a phase of reorganization into a “charging OS ecosystem” integrating authentication, communication, control, and settlement.
Industry experts warn that dependence on foreign power modules could lead to dependence on specific countries for upper-level software, including control unit design and communication protocol compliance. Concerns are rising that control over data generated during the charging process, as well as future services such as vehicle-to-grid (V2G) and demand response (DR), could be lost. The government is encouraging the establishment of a domestic power module ecosystem through public fast charger procurement and differentiated subsidy policies, aiming to build actual installation and operational experience.
Even in the realm of slow chargers, once considered merely “sophisticated multi-tap” devices focused solely on power supply, changes are emerging. Equipping slow chargers with power line communication (PLC) modems that directly communicate with vehicles can transform them into intelligent infrastructure. PLC modems enable battery status monitoring, real-time charging control, and fire prevention. GridWiz has developed and applied internationally standardized PLC-based charging communication and control technology to slow chargers, and companies like ZenisKorea are also expanding related technologies.
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