Electric vehicle parts subsidiary of LS Electric signs large-scale contract with Hyundai Motor and Kia for supply of EV relays from 2025, with accumulated orders exceeding KRW 1 trillion.
22 Aug 2023 | 6989 Views | By Autocar Professional Bureau
LS e-Mobility Solutions, a key electric vehicle parts subsidiary of LS Electric, has signed a large-scale contract with Hyundai Motor and Kia, with accumulated orders exceeding KRW 1 trillion (US$ 746 million).
The contract is for the supply of EV relays for electric vehicles to the Korean automaker, with ...
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LS e-Mobility Solutions, a key electric vehicle parts subsidiary of LS Electric, has signed a large-scale contract with Hyundai Motor and Kia, with accumulated orders exceeding KRW 1 trillion (US$ 746 million).
The contract is for the supply of EV relays for electric vehicles to the Korean automaker, with supplies commencing from the first half of 2025.
An EV relay is a key safety component that protects high-voltage systems by delivering battery current to the inverter under normal circumstances and cutting off current in the event of an abnormal current or fire. It is essential for all means of transportation that use batteries.
According to LS Immobility Solutions, it bagged the new business based on its technology and reliability of its supplies to major global OEMs including GM, Renault, Daimler, Volkswagen, Volvo and Porsche.
With the Hyundai Motor Group, which comprises the Hyundai, Kia and Genesis brands, accelerating its drive to electrification, LS Immobility Solutions is expected to benefit from increased demand for its EV components.
Along with this latest business win, LS Immobility Solutions has surpassed KRW 1 trillion in accumulated orders for relay and BDU (Battery Disconnect Unit) electric vehicle parts in about a year since it was spun off from LS Electric in April 2022. Between January and June 2023, LS Immobility Solutions has won new business orders worth 400 billion KRW (US$ 298 million) in the first half of this year alone, following 700 billion KRW (US$ 53o million) last year.
As the global EV market expands rapidly due to environmental and fuel efficiency regulations around the world, LS Immobility Solutions expects to maintain growth in the mid- to long-term as well as large-scale projects in the second half of 2023.
LS Mobility Solutions plans to complete the construction of a plant in Durango, Mexico within this year to respond to the North American electric car market, , and to supply mass-produced parts produced at the plant to customers from the second half of next year.
Currently, the North American EV market is expected to expand from 750,000 units in 2022 to 2.03 million units in 2025 and 6.02 million units in 2030, according to the Biden government's policy to expand the supply of eco-friendly electric vehicles.
In particular, according to the executive order to produce 50% of all passenger vehicles sold by 2030, Ford and other US big 3 automakers are also making bold investments in the development of next-generation EVs, which is expected to accelerate the growth of the local market.