LS Cable & System Halts Round Wire Production... Focuses on Angular Wires for Electric Vehicles

[Image source=Yonhap News]

[Asia Economy Reporter Jang Hyowon] LS Cable & System announced that it will discontinue its Round Wire business and focus on the high-performance Rectangular Wire business for electric vehicles.

On the 28th, LS Cable & System disclosed that it will cease production and sales of Round Wire as of the 30th of this month. LS Cable & System explained, "The termination of the Round Wire business is expected to improve the business structure and financial condition in the mid to long term," and added, "We plan to improve our business portfolio through new business initiatives going forward."

LS Cable & System operates in the Magnet Wire business. Magnet wire is copper wire coated with an insulating material, wound in a coil form around the drive motor, playing a role in converting electrical energy into mechanical energy. Magnet wire can be considered the blood vessels of the drive motor.

LS Cable & System's magnet wire business is categorized into Round Wire, Rectangular Wire, and high-performance magnet wire based on product characteristics, among which Round Wire refers to the most common round-shaped wire.

However, with the growth of the electric vehicle market, demand for products that can withstand high voltage and heat has increased. In response, LS Cable & System has developed Rectangular Wire with an angular shape to meet market demand.

An LS Cable & System official explained, "The existing Round Wire has limited applications and low added value, which limits its growth potential," and added, "Rectangular Wire has high density and efficiency, and is recently used in electric vehicle drive motors, leading to rapid market growth."

LS Cable & System is the sole supplier of Rectangular Wire for Hyundai Motor's and Kia's Ioniq 5 and EV6. Instead of continuing the Round Wire business, LS Cable & System plans to focus on the Rectangular Wire and high-performance magnet wire businesses.

Recently, LS Cable & System separated its Rectangular Wire business to establish LSEVC (LS EV Core), and plans to sell 44.09% of LSEVC's shares. The proceeds from the sale will be used as resources for business expansion.

Last year, the Round Wire business recorded sales of 228.3 billion KRW, accounting for 3.74% of LS Cable & System's consolidated sales.

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