LS e-Mobility Solutions Co., a power transmission parts maker, has won a 250 billion won ($187 million) deal to supply electric vehicle (EV) parts to South Korea’s two largest carmakers — Hyundai Motor Co. and Kia Corp.
LS e-Mobility, a unit of LS Group, said on Tuesday it plans to supply EV relays to Hyundai and Kia from the first half of 2025.
EV Relays are used in electric cars to prevent short-circuit and open-circuit events that, if exposed to high voltage, could damage the vehicle's electrical system or cause injury.
Under normal circumstances, the safety component transfers battery current to the inverter. In the event of abnormal current or fire, it interrupts the current to protect the high-voltage system.
“Hyundai Motor Group, now the world’s third-largest automaker, is accelerating its electrification push. We expect a strengthened partnership with Hyundai and Kia going forward,” said an LS e-Mobility official.
Spun off from LS Electric Co. in April 2022, LS e-Mobility counts General Motors, Renault, Daimler, Volkswagen, Volvo and Porsche among its clients.
The company, which clinched 700 billion won worth of orders from global automakers in 2022, has so far this year won 400 billion won in orders, including the latest deal from Hyundai and Kia.
OVERSEAS EXPANSION
LS e-Mobility said it will complete construction of an EV parts factory in Durango, Mexico, by the end of this year to meet growing demand from electric car manufacturers in North America.
Starting in the second half of next year, it plans to supply EV relays and other components produced at the Mexican plant to its North American clients.
The North American EV market is forecast to expand from 750,000 units in 2021 to 2.03 million units by 2025 and further to 6.02 million units by 2030, driven by US President Joe Biden’s push to roll out more eco-friendly vehicles on America's roads.
“Our Mexico plant will serve as our frontline base for our push into the global EV parts market. We will work closely with companies such as GM, Ford and Stellantis to enhance our presence in the market,” said an LS e-Mobility official.
