LS Electric opens EV parts plant in Mexico

LS e-Mobility Solutions has opened a new factory manufacturing safety parts for electric vehicles (EV) in Mexico, which the company said will become a strategic base for the supply of key EV components in North America.

According to the EV parts arm of LS Electric, Monday, the plant comes with a production capacity of five million EV relays and four million battery disconnect units annually. Both components are considered key for the safety of battery-powered EVs. The facility is located in Mexico’s north-central state of Durango.

This is the first time the company has established an overseas factory since it was split up from LS Electric in April 2022. LS e-Mobility Solutions identified the region as a key base for the production and logistics for its expansion into the United States. The company operates two other production bases in Cheongju, North Chungcheong Province, and Wuxi, China.

The LS affiliate also presented its vision of achieving sales of 700 billion won ($524.85 million) in North America by 2030 by expanding its partnerships with leading automakers there, such as Ford and Stellantis. Buoyed by its potential growth in the region, the company also aims to generate annual sales of 1.2 trillion won on the timeline.

“LS e-Mobility Solutions will play a pivotal role in the next-generation core business by growing to become the best auto parts manufacturer for EVs in North America,” LS Electric Chairman Koo Ja-kyun said during an event to celebrate the completion of the factory. “Investment in EVs is perceived as crucial in an era of electrification. We are expected to create measurable achievement in that we have preemptively expanded our production base in the world’s largest EV market.”

LS e-Mobility Solutions clinched a mega-sized EV relay supply deal worth 250 billion won with Hyundai Motor and Kia in August last year. It has been only about a year since its division that the company attained an accumulated contract worth 1 trillion won.

“We have decided to set up the EV parts production line in Mexico as part of efforts to meet the standard required in North America, and this is the first time that a local firm has done so there, an official from the company said.

Courtesy of LS Electric An overview of LS e-Mobility Solutions’ factory in Durango, Mexico, is seen above. Key electric vehicle (EV) parts, such as EV relays and battery disconnect units, are manufactured at the facility.