LS Mobility Solutions, a significant player in the electric vehicle (EV) parts sector and a subsidiary of LS Electric, has inked a substantial contract with Hyundai Motor and Kia, valued at over KRW 1 trillion (approximately US$ 746 million). The contract entails the supply of EV relays for electric vehicles to Hyundai Motor Group, with deliveries scheduled to commence in the first half of 2025.
The EV relay plays a critical role in ensuring the safety of high-voltage systems within electric vehicles. It is responsible for directing battery current to the inverter under normal operating conditions, while also disconnecting the current in the event of abnormal current flow or fire. This safety component is indispensable for all battery-powered transportation modes.
LS Immobility Solutions secured this significant contract due to its technological prowess and a reputation for supplying top-tier global original equipment manufacturers (OEMs), including GM, Renault, Daimler, Volkswagen, Volvo, and Porsche. As Hyundai Motor Group intensifies its focus on electrification across its brands—Hyundai, Kia, and Genesis—LS Immobility Solutions is poised to capitalize on the surging demand for EV components.
This recent achievement propels LS Immobility Solutions beyond the KRW 1 trillion mark in accumulated orders for relay and BDU (Battery Disconnect Unit) EV parts. Remarkably, this milestone has been reached in just over a year since its spin-off from LS Electric in April 2022. Notably, the company secured new business orders amounting to KRW 400 billion (about US$ 298 million) in the first half of 2023, building upon the KRW 700 billion (approximately US$ 530 million) secured in the previous year.
With the global EV market expanding rapidly due to stringent environmental and fuel efficiency regulations worldwide, LS Immobility Solutions anticipates sustained growth in the medium- to long-term. Furthermore, the company is gearing up for substantial projects in the latter half of 2023.
To cater to the North American electric car market, LS Mobility Solutions is on track to complete the construction of a plant in Durango, Mexico by the end of this year. This strategic move aligns with the projected growth of the North American EV market, which is expected to surge from 750,000 units in 2022 to 2.03 million units in 2025 and a substantial 6.02 million units by 2030. This momentum is driven in part by the Biden administration’s commitment to expand the supply of eco-friendly electric vehicles.
As the automotive landscape rapidly transforms towards electrification, LS Mobility Solutions is poised to play a pivotal role in meeting the escalating demand for critical EV components, solidifying its position as a key player in the global EV ecosystem.
