ajunews Sunday,3 March 2024

LS Electric's subsidiary completes construction of EV parts plant in Mexico

By Kim Joo-heon Posted : February 5, 2024, 16:51 Updated : February 8, 2024, 01:53
Courtesy of LS Electric
[Courtesy of LS Electric]

SEOUL -- LS e-Mobility Solutions, an electric vehicle component producer affiliated with South Korea's power solution provider LS Electric, has completed the construction of a plant in Mexico. Through the new plant that can produce up to five million electric vehicle relays and four million battery disconnect units annually, LS e-Mobility Solutions aims to strengthen its presence in the North American electric vehicle market.

LS Electric said on February 5 that LS e-Mobility Solutions' North American plant was built in Durango, Mexico. The Mexican plant, designed for the production of EV parts, will serve as LS e-Mobility Solutions' outpost for targeting the North American automobile market. "We anticipate great results as we have boldly and promptly secured a production base targeting the North American market, which is the world's largest EV market," said LS Electric CEO Koo Ja-kyun.

LS Electric projected that the number of EVs in North America will skyrocket to 8.2 million units by 2029 from the current 3.4 million, thanks to the EV promotion policies of the Biden administration. The EV parts manufacturer plans to achieve a revenue of 700 billion won ($525 million) in North America by 2030. LS e-Mobility Solutions will cooperate with major North American automakers such as Ford and Stellantis.

Previously, the South Korean company signed an EV relay supply contract worth 250 billion won with Hyundai Motor and Kia. LS e-Mobility Solutions was spun off from LS Electric in April 2022 and operates plants in South Korea and Wuxi, China. Wuxi, is a city near Shanghai in eastern China. 

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