'Targeting the Growing European Electric Vehicle Market'… LS Cable Expands Parts Factory in Poland

An employee at the LS EV Poland factory is inspecting parts for electric vehicle batteries.

[Photo by LS Cable & System]

[Asia Economy Reporter Ki-min Lee] LS Cable & System is expanding its production plant in Poland to target Europe, the second-largest electric vehicle (EV) market in terms of sales volume.

According to industry sources on the 10th, LS Cable & System is making additional investments to expand its EV battery parts subsidiary (LS EV Poland) located in Zi?bice, southwestern Poland.

LS EV Poland, a 100% subsidiary of LS Cable & System, produces interconnection boards (ICB) for EV battery packs. The interconnection board is a key component that connects cells within an EV battery pack to supply power.

LS EV Poland was established in November 2017 as an advanced base for supplying the European finished car market. At that time, it invested 20 billion KRW to purchase a newly built factory on a 26,450㎡ site with a building area of 9,920㎡ in the Zi?bice Special Economic Zone and set up production facilities.

This factory produces interconnection boards for 300,000 electric vehicles. Its main customer is LG Chem’s plant located nearby in Wrocław.

LS EV Poland Factory Overview

[Photo by LS Cable]

The recent expansion of LS Cable & System’s Poland plant is aimed at proactively securing production capacity in line with the growth trend of the European EV market. Europe is the world’s second-largest EV market after China. According to market research firms, sales from January to November 2018 increased by more than 30%, reaching approximately 1.2 million units.

After completion, LS Cable & System aims to more than double its annual production target from 300,000 units to over 600,000 units. The expanded plant will cover a site of 98,000㎡ with a building area of 8,000㎡, about three times larger than the existing site.

An LS Cable & System official stated, “Starting with supplying battery parts to LG Chem for EVs, we plan to expand our supply to European automakers. In the long term, we intend to leverage global supply chains in China and Europe to expand into markets such as the United States and India.”

Meanwhile, LS EV Korea, a subsidiary producing high-voltage harnesses, battery packs, and parts for energy storage systems (ESS), is positioned as the core of LS Cable & System’s EV business to drive its global EV operations.

An LS Cable & System official said, “We are committed to fostering the EV-related business as a future growth engine. We plan to develop our subsidiary LS EV Korea into a global specialized EV parts company and are preparing for LS EV Korea’s public listing.”

This content was produced with the assistance of AI translation services.