LS Electric announced on the 5th that its electric vehicle parts subsidiary, LS E-Mobility Solutions, has secured a production base to target the North American electric vehicle market with the recent completion of the Durango, Mexico plant.
The Durango factory has a total floor area of 35,000 m2 and has the capacity to produce 5 million EV relays and 4 million battery disconnect units (BDUs), which are key components for the safety of electric vehicles. This is the first overseas factory built by LS E-Mobility Solutions after its physical spin-off from LS Electric in April 2022.
LS Electric said that Durango, a city in northern Mexico, has advantages in production and logistics in its North American localization strategy. With this, LS E-Mobility Solutions has secured its third production base following Cheongju, North Chungcheong Province, and Wuxi, China. LS E-Mobility Solutions plans to achieve 700 billion won in North American sales and 1.2 trillion won in company-wide sales by 2030 by continuing its cooperative relationships with major North American automakers such as Ford and Stellantis and expanding its production lines through additional investments.
LS Electric Chairman Koo Ja-kyun said at the Durango factory completion ceremony, “We expect great results as we have boldly and quickly secured a production base to target the North American market, the world’s largest electric vehicle market.”
Chairman Koo emphasized, “As investment in the electric vehicle business is recognized as essential in the era of electrification, LS E-Mobility Solutions will grow into the best electric vehicle parts company in North America and play an important role in our future core business.”
Previously, LS E-Mobility Solutions continued to receive large orders, including signing an EV relay supply contract worth 250 billion won with Hyundai Motor Company and Kia in August last year, and accumulated orders exceeded 1 trillion won in just one year after the spin-off. An official from LS E-Mobility Solutions said, “In line with the demands of the North American market, which requires the establishment of local production facilities, we have established an electric vehicle parts production line in Mexico for the first time in the domestic industry.”
He added, “By adding a localization strategy to the world’s highest level of product reliability, we have become the best in North America.” “We will grow into an electric vehicle parts company,” he said.