LS Electric opens EV components plant in Mexico for North American customers

South Korea’s LS Electric said on Monday that its electric vehicle (EV) components subsidiary LS e-Mobility Solutions has completed its plant in Durango, Mexico to sell products in the North American market.

This plant covers an area of 35,000 square meters. It could output 5 million relays and 4 million battery disconnect units per year. Based on an estimate, a typical EV can equip up to 20 relays or more. Thus, the plant could serve up to 250,000 EVs each year.

LS e-Mobility Solutions announced the plant’s plan in July 2022 and the recent inauguration follows 18 months of construction.

Koo Ja-kyun, CEO of LS Electric said his company is expecting some good results and “boldly secured a production foothold to target the North America market”.

This is the first overseas investment from LS e-Mobility Solutions since the company separated from LS Electric in April 2022.

It is said that the plant’s location in Northern Mexico gives an advantage in logistics for local deliveries. This Korean firm has partnerships with major car makers including Ford and Stellantis and looking to expand the Durango site with new investments.

With its expansion, LS e-Mobility is expecting 700 billion won ($523 million) in sales in North America and 1.2 trillion won in the global market by 2030. Meanwhile, the global relay market is projected to grow by 7.3 trillion won by the projected year.

LS e-Mobility Solution also has two other production plants in Cheongju and second in Wuxi China.

(source – The Korean Herald)