LS e-Mobility Solutions, a subsidiary focused on electric vehicle (EV) components under LS Electric Co., has secured a supply contract valued at 250 billion won ($187 million) to provide relays for electric vehicles manufactured by Hyundai Motor Co. and Kia Corp.
The agreement was officially announced by LS Electric on the 22nd, highlighting that LS Mobility Solutions, a branch of LS e-Mobility Solutions, has recently entered into a contract with Hyundai-Kia Motors. The agreement entails the supply of EV relays for electric vehicles, with a projected value of 250 billion won. The components are scheduled for delivery in the first half of 2025.
The EV relay is critical as a safety component within the high-voltage systems of electric vehicles. Its primary function involves enabling the controlled flow of battery current to the inverter during regular operation. However, in the presence of abnormal current or fire occurrences, the EV relay plays a vital role by swiftly interrupting the current flow, thereby ensuring the protection of the vehicle’s high-voltage system.
This pivotal safety mechanism prevents potential hazards by averting short-circuit and open-circuit situations that might arise within electric cars. These events, if exposed to the vehicle’s elevated voltage levels, have the potential to cause harm to the electrical system and pose a risk of injury.
The role of EV relays extends across all modes of transportation that rely on battery technology, making them an essential feature in maintaining the integrity and safety of electric vehicles.
Commencing from the first half of 2025, the supplied products are slated to be integrated into vehicles manufactured by Hyundai Motor and Kia. LS e-Mobility Solutions has previously furnished components to prominent global automakers, including names such as General Motors, Renault, Daimler, Volkswagen, Volvo, and Porsche.
With Hyundai Motor and Kia, globally ranked as the third-largest contributors to car sales, intensifying their shift towards electric vehicles, a spokesperson from LS e-Mobility Solutions stated that the partnership between the Korean car manufacturers.
The recent agreement has propelled LS Mobility Solutions to surpass 1 trillion won in cumulative orders for electric vehicle components, a feat achieved in just over a year since its spin-off from LS Electric in April of the previous year.
The company’s order intake amounted to 700 billion won in the preceding year and an additional 400 billion won during the initial half of the current year.
Additionally, LS Mobility Solutions is on track to finalize the construction of a manufacturing facility in Durango, Mexico, this year. The plant is anticipated to commence mass production in the latter half of the following year, supplying components to regional customers.
The North American electric vehicle market is for significant expansion, projected to escalate from 750,000 units in 2022 to 2.03 million units in 2025 and further soar to 6.02 million units by 2030.
“Drawing on our world-class technology and unwavering reliability, we’ve achieved 1 trillion won in orders within just a year since our company’s inception, including contracts from Hyundai and Kia Motors,” said a spokesperson from LS Mobility Solutions. “Our focus moving forward is to foster active collaborations with prominent global manufacturers like GM, Ford, and Stellantis, aiming to strengthen our position as a prominent global electric vehicle parts provider.”
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