LS Materials completes EV parts factory in Gumi, eyes annual sales of $148M by 2030

LS Materials is gearing up for a major market push with the completion of its cutting-edge lightweight parts factory in Gumi, North Gyeongsang Province. Designed to serve the booming electric vehicle and mobility sectors, the facility is set to kick off mass production in the second half of this year.

With bold ambitions, the company is targeting annual sales of 200 billion won (US$148 million) in this space by 2030, signalling its serious intent to become a key player in the future of sustainable mobility. Gumi is the second largest and most densely populated city in North Gyeongsang Province, South Korea.

South Korea is a major player in the EV market, with a strong focus on both manufacturing and battery technology. South Korea’s electric vehicle market is accelerating at full speed, fuelled by strong government backing, cutting-edge technology, and a growing commitment to environmental sustainability.

LS Materials highlighted that the completion of the Gumi facility represents Asia's first high-quality lightweight parts production system. This capability has previously been concentrated in Europe. This milestone is anticipated to drive supply chain diversification and promote the internalisation of advanced manufacturing technologies.

Hong Young-ho, CEO of LS Materials, said, “We are currently in supply negotiations with major domestic automakers,” adding, “We will take the lead in the mobility parts market by making high-strength lightweight parts our future growth engine.”

In response to the current slowdown in electric vehicle demand, LS Materials plans to utilise the new facility to also produce components for internal combustion engine vehicles. With mass production set to begin in the second half of this year, the company is targeting annual sales of 200 billion won by 2030—approximately 1.4 times its total revenue of 142.1 billion won recorded last year.

On May 15, LS Materials announced that its subsidiary HiMK has completed the construction of a high-strength aluminium parts production facility in the Gumi National Industrial Complex. Established last year as a joint venture with Austrian aluminium parts specialist HAI, HiMK will focus on manufacturing a range of aluminium components for electric vehicles.

These include crash boxes, side sills, and battery pack cases (BPC) made from aluminium profiles designed to protect the vehicle body and battery. The new facility has the capacity to supply parts for up to 300,000 electric vehicles per year.

The newly manufactured products are more than 10 per cent lighter than conventional components, while offering superior strength. This advancement is expected to enhance driving range, battery efficiency, and collision safety across next-generation mobility solutions, including electric vehicles and urban air mobility (UAM).

Image Source: Korea IT Times