South Korean automotive parts manufacturer LS e-Mobility Solutions Company Ltd announced it has signed a deal worth KRW250bn (US$187m) to supply parts for electric vehicles (EVs) to be produced by Hyundai Motor and Kia Corporation.
LS e-Mobility Solutions, the power transmission systems unit of LS Group formerly known as LS Electric Company, said the supply contract for relays and other electrical parts will begin in the first half of 2025 for new EV models to be produced by the country’s largest vehicle manufacturing group. Relays help prevent short-circuits in high-voltage systems, which can otherwise cause significant damage to the electrical systems and potentially cause fires.
A spokesperson for LS e-Mobility said in a statement “Hyundai Motor Group (HMG), now the world’s third-largest automaker, is accelerating its electrification drive and we expect to strengthen our partnership with Hyundai and Kia in the future”.
LS e-Mobility also supplies electrical parts to General Motors, Ford, Stellantis, Volkswagen, Daimler, Volvo and Renault among its clients. The company said it won orders worth some KRW700bn from automotive clients last year and KRW400bn so far in 2023, including the contract with HMG.
LS e-Mobility is currently building an EV parts plant in the Mexican state of Durango which is scheduled to be completed by the end this year to help meet growing demand from automotive clients in North America.
The company confirmed: “the Mexican plant will serve as a base for our push into the global EV parts market. We will work closely with companies such as GM, Ford and Stellantis to increase our presence in the North American market”.
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