Gu Ja-gyun Visits LS EM Sol Mexico Plant, Aiming for "Top North American Electric Vehicle Parts Company Growth"

Completion of Mexico Durango Plant
5 Million EV Relays and 4 Million BDUs Produced
"Supply Expansion to Big 3: Ford, Stellantis, GM"
"Achieving 1.2 Trillion Won in Sales by 2030"

Gu Ja-gyun, Chairman of LS Electric, visited the LS e-Mobility Solutions Mexico plant, a subsidiary specializing in automotive electrical and electronic equipment, and stated, "We will grow it into the top electric vehicle parts company in North America."

On the 5th, LS Electric announced that Chairman Gu made these remarks at the completion ceremony of the LS e-Mobility Solutions Durango plant in Mexico. About 50 stakeholders, including Chairman Gu, Kim Won-il, CEO of LS e-Mobility Solutions, and Yoo Seung-woo, head of LS e-Mobility Solutions Mexico, attended the ceremony.

In his commemorative speech, Chairman Gu said, "LS e-Mobility Solutions has boldly and swiftly secured a production base to target the North American market, the world's largest electric vehicle market, so we expect significant results," adding, "LS e-Mobility Solutions will grow into the top electric vehicle parts company in North America and become a key pillar of our future core business."

The LS e-Mobility Solutions Durango plant spans a total floor area of 35,000㎡ (approximately 10,000 pyeong). It has the capacity to produce 5 million EV relays and 4 million Battery Disconnect Units (BDU). EV relays are power control components for electric vehicles.

The Durango plant is the first overseas factory established by LS e-Mobility Solutions after its physical spin-off from LS Electric in April 2022. Durango is a city in northern Mexico with advantages in production and logistics. LS e-Mobility Solutions has secured its third production base following Cheongju in Chungbuk and Wuxi in China.

Koo Ja-kyun, Chairman of LS Electric, visits the LS E-Mobility Solutions subsidiary's Durango plant in Mexico to inspect the production line.
[Photo by LS Electric]

LS e-Mobility Solutions plans to strengthen partnerships with North America's 'Big 3' automakers: Ford, Stellantis, and General Motors (GM). They intend to make additional investments to expand the current EV relay and BDU production lines. The goal is to achieve 700 billion KRW in North American sales and 1.2 trillion KRW in total company sales by 2030.

An LS e-Mobility Solutions official stated, "In response to North American market demands, we established the first electric vehicle parts production line in Mexico among domestic companies," adding, "By combining world-class product reliability with localization strategies, we will grow into the top electric vehicle parts company in North America."

In August last year, LS e-Mobility Solutions signed a 250 billion KRW EV relay supply contract with Hyundai Motor and Kia. Within one year of the spin-off, cumulative orders surpassed 1 trillion KRW.

LS e-Mobility Solutions Durango Plant in Mexico. [Photo by LS Electric]

Due to the Biden administration's eco-friendly electric vehicle promotion policies, the North American electric vehicle market is expected to grow from 3.4 million units this year to 8.2 million units by 2029. Following the executive order to produce 50% of passenger cars as electric vehicles by 2030, the U.S. Big 3 automakers are investing in next-generation electric vehicle development.

A company official said, "We expect to maintain growth not only through large project orders this year but also in the mid to long term."

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