LS Group Chairman Koo Ja-eun has emphasized electrification as a key driver of future growth, and this focus is increasingly evident in the domestic automotive market. Hyundai Motor and Kia are adopting LS’s automation systems in their new electric vehicle (EV) factories, signaling a significant move in their electrification efforts.
LS Electric has recently completed the spec-in of their automation systems in a domestic automobile factory for the first time, according to the industry insiders as of Jan. 23. This integration encompasses areas such as body, painting, and upholstery. In this context, ‘spec-in’ refers to providing products and processes customized from the design stage to meet specific customer needs.
This new collaboration will see the implementation of LS Electric’s automation system in Hyundai Motor’s upcoming Ulsan Genesis EV plant, as well as in Kia’s Hwaseong EV plant and the Gwangmyeong Plant 2. These plants, either newly constructed or repurposed for electric vehicles last year, align with Hyundai Motor Group’s strategy towards electrification. Notably, the Ulsan EV plant is Hyundai’s first new facility in South Korea in 29 years, following the establishment of the Asan plant in the South Chungcheong Province in 1996.
Regarding financial impact, LS Electric recorded approximately $1.5 million (200 million won) in sales from Gwangmyeong Plant 2 last year. This year, the company anticipates generating $3.4 million (4.5 billion won) and $2.2 million (3 billion won) in sales from the new Ulsan and Hwaseong plants, respectively. Construction of the Hwaseong and Ulsan EV plants began in April and November of the previous year. Gwangmyeong Plant 2 began transitioning to EV production in June last year, with operations expected to resume next month.
LS Electric has successfully secured substantial orders for essential components in EVs. Their automation systems are integral to battery pack lines in Ulsan, Chungju, and Seongju and drive motor core lines in Daegu. The drive motor core, a crucial motor component, generates electricity and functions analogously to an engine in traditional internal combustion engines.
Amidst the accelerating electrification trend, particularly among automakers, LS Group companies, including LS Electric, are concentrating on strengthening their market positions. The growing importance of LS’s core businesses, such as wires and power equipment, is closely linked to this trend. Consequently, the company has identified batteries, electric vehicles, and semiconductors as its strategic focus areas for the future.
At the 2024 New Year’s Business Event earlier this month, Koo spoke to reporters about his steadfast commitment to electrification, highlighting exports as a central theme for the year. “With the electrification of all things, we foresee robust growth across all LS’s businesses,” Koo remarked about the group’s business prospects.
