LS e-Mobility wins $187 mn supply deal for Hyundai, Kia EVs

LS e-Mobility Solutions Co.’s EV relays. [Courtesy of LS e-Mobility Solutions]

LS e-Mobility Solutions Co., an EV part subsidiary of LS Electric Co., announced on Tuesday that it has won a supply contract of relays worth 250 billion won ($187 million) for electric vehicles from Hyundai Motor Co. and Kia Corp.

The EV relay serves as a critical safety component for high-voltage systems in electric vehicles. Under normal circumstances, it facilitates the transfer of battery current to the inverter, but in cases of abnormal current or fire, it intervenes by cutting off the current flow, thus safeguarding the vehicle’s high-voltage system.

The products will be supplied to Hyundai Motor and Kia from the first half of 2025. LS e-Mobility Solutions has a track record of supplying components to major global automakers including General Motors, Renault, Daimler, Volkswagen, Volvo, and Porsche.

As Hyundai Motor and Kia, collectively ranked third in global car sales, are accelerating their transition to electric vehicles, LS e-Mobility Solutions and the Korean carmakers will forge a tighter partnership, said an LS e-Mobility Solutions spokesperson.

Notably, the recent deal has enabled LS e-Mobility Solutions to surpass 1 trillion won in cumulative EV component orders just over a year since it spun off from LS Electric in April of last year. The company’s received order amount reached 700 billion won last year and 400 billion won in the first half of this year.

In preparation for the North American EV market, LS e-Mobility Solutions is set to inaugurate a factory in Durango, Mexico later this year. Starting from the second half of next year, the factory will supply components to clients. The North American electric vehicle market is expected to grow from 750,000 units in 2020 to 2.03 million units in 2025 and further to 6.02 million units in 2030, driven by the EV promotion policies of the Biden administration.

* source : https://pulsenews.co.kr/view.php?year=2023&no=637791