LSIS has built the country’s first exclusive green car key-component electric vehicle (EV) relay plant, taking its first step towards becoming a global green car solution provider.

On May 15, LSIS held a ceremony to celebrate the completion of the EV relay plant at its Cheongju Workplace No. 1. In attendance at the event, which saw the plant enter into full operation, were 180 people including CEO and Vice Chairman Koo Ja-kyun, government officials from the Ministry of Knowledge Economy, the Ministry of Land, Transport and Maritime Affairs, the Ministry of Environment, and Green Growth Korea, as well as personnel from Hyundai Motor Company, LG Chem and other local and overseas customers. 

The EV relay is a component needed to supply electric energy to the battery in the power train for driving an electric car or to safely cut off power. Thus, it essentially requires high-voltage and high current-resistance durability, and it must be a lightweight and low-noise technology. 

In his speech to the assembled audience, LSIS Vice Chairman Koo said, “LSIS is still a young business in the global green-car components market, but it has leapt into the ranks of the three most powerful global players in the EV Relay category, together with an American and a Japanese company. This plant will certainly help LSIS advance from a market dark horse to its new status as one of the world’s top players.”  

He added, “With the ongoing expansion of the EV Relay markets, the three majors will further widen the gap with the rest of the field, and as such are likely to compete ever more fiercely. Based on our technological prowess and the plant’s sophisticated equipment, we expect to take the lead in the market competition.”  

Construction of the EV Relay plant began last May 23, and was completed within one year at a total investment cost of 31.4 billion won. With a total floor space of 13,680m2, the plant comprises two aboveground stories and one underground level. The aboveground premises consist of the plant and laboratories, while the underground area consists of utility buildings.  

Prior to its construction, the Cheongju Workplace operated an EV Relay line, but following a surge in orders from North America, Europe, and Asia since 2010, the decision was made to build a new plant.  

With the completion of this plant, LSIS has acquired a mass-production infrastructure for EV Relays, and is now in a position to increase its annual output from 100,000 EV Relays to 1 million this year and 4 million by 2015.  

In response to the rapidly expanding global green-car components market along with existing orders, LSIS has established the basis for carrying out marketing activities proactively and aggressively.  

An LS official said, “Since 2010, the volume of orders has steadily increased due to wider recognition of our technologies, and under agreements with global automakers we develop and manufacture components. Given the robust EV Relay economy, we expect to reach cumulative target orders worth 1 trillion won in 2013.”He added, “Global automakers are paying attention to LSIS because the company, as a smart-grid leader, has the necessary know-how concerning not only automotive components but also electrical grids. In the coming smart-grid era, automobiles will be connected to electrical grids to exchange electrical information. With its proven excellence in both areas, LSIS has massive potential in the green-car market.”  

Meanwhile, the global eco-friendly automobile market will grow at an annual average rate of 31.7 percent, exceeding 12 million cars in 2020, while the EV Relay markets will grow at an average annual rate of 26 percent to create a market worth 1.7 trillion won by 2020. 

To date, the global EV Relay markets have seen Tyco, Panasonic, and OMRON competing with each other. However, LSIS’s EV Relays will change the competitive landscape. The EV Relay was developed using high-precision sealing technology, which was developed based on LSIS’s 20 years of experience with vacuum interrupters to reduce its volume by 86 percent and lighten its weight by 93 percent compared with existing products.  

In addition, LSIS has built up a solid portfolio in the electronic parts area, including BDUs (Battery Disconnect Unit) such as EV Relays and other power control green-car components, the electrical-electronic product group comprising PCUs (Power Control Unit) and OBCs (On-Board Charger), and charging infrastructure such as slow-speed charging stands. #