South Korea’s LS Cable & System announced plans to invest KRW67.5bn (US$53m) in a new joint venture with Austria’s Hammerer Aluminium Industries (HAI) which it describes as a leading supplier of aluminium parts to the global electric vehicle (EV) industry.
According to local reports, LS Cable – a manufacturer of aluminium parts including cable systems – announced in a regulatory filing at the end of last week that it signed an agreement to establish a joint venture with HAI to develop and manufacture high strength, lightweight aluminium EV components.
LS Cable said it would initially acquire all of the 67,500,000 issued shares in the new company with HAI agreeing to buy 33.3% later.
The joint venture was scheduled to begin mass production of high strength, lightweight aluminium auto parts, including battery cases, by 2025, generating revenue of around KRW200bn (US$157m) by 2027.
LS Cable supplies of high-strength aluminium components to Hyundai Motor and Kia Corporation and said it hoped the deal with HAI would accelerate its expansions into the global EV supply chain.
Last month, LS Cable said its domestic affiliate, LS Alsco Company, had developed a new, highly conductive, lightweight and strong aluminium alloy which it hoped would replace copper wiring in EVs.