LS ELECTRIC Chairman Koo Ja-Kyun visits LS e-Mobility Solutions' Durango, Mexico plant to review the North American electric vehicle market and call on the company to grow into the top electric vehicle component company in North America with the highest quality and technological capabilities.
LS ELECTRIC recently held an inauguration ceremony for its electric vehicle components subsidiary LS e-Mobility Solutions' Durango, Mexico plant. More than 50 key stakeholders attended the ceremony, including LS ELECTRIC Chairman Koo Ja-Kyun, LS e-Mobility Solutions CEO Kim Won-Il, and LS e-Mobility Solutions Mexico President Yoo Seung-Woo.
"LS e-Mobility Solutions has boldly and quickly secured a production base in North America, the world's largest electric vehicle market, and we expect its achievements to be great," said Chairman Koo. "As investment in the electric vehicle business is recognized as a necessity in the era of electrification, LS e-Mobility Solutions will grow into the top electric vehicle parts company in North America and serve as a pillar of its future core business."
The LS e-Mobility Solutions Durango plant has a gross floor area of 35,000 square meters (m2) with a production capacity of 5 million EV relays and 4 million Battery Disconnect Units (BDUs). Durango is a city in northern Mexico that offers production and logistical advantages for our North American localization strategy.
The Durango plant is LS e-Mobility Solutions' first overseas plant since its spin-off from LS ELECTRIC in April 2022. The Durango plant is LS e-Mobility Solutions' third production location, joining Cheongju, South Korea and Wuxi, China.
LS e-Mobility Solutions aims to achieve KRW 700 billion in North American sales and KRW 1.2 trillion in global sales by 2030 by solidifying partnerships with the Big 3 North American automakers, including Ford and Stellantis, and expanding its current EV relay and BDU (Battery Disconnect Unit) production lines through additional investment.
Meanwhile, LS e-Mobility Solutions continued to win large orders, including signing a contract worth 250 billion won with Hyundai Motor Company in August last year to supply EV relays for electric vehicles, and exceeded 1 trillion won in cumulative orders within a year after the spin-off.
As the electric vehicle market is currently expanding rapidly due to environmental and fuel efficiency regulations around the world and automakers' competition to reduce prices, LS e-Mobility Solutions expects to receive large project orders within the year and maintain growth in the mid- to long-term.
In particular, the North American electric vehicle market is expected to expand from 3.4 million units in 2024 to 4.6 million units in 2025 and 8.2 million units in 2029 in accordance with the Biden administration's policy to support the spread of eco-friendly electric vehicles.
