LS C&S is expanding its EV (electric vehicle) parts business through a joint venture with Hammerer Aluminium Industries (HAI), a global manufacturer specializing in aluminum parts.
LS C&S signed a deal to establish a joint venture for aluminum EV parts with HAI based in Austria, the former said, on Feb. 10.
Both sides will invest 67.5 billion won in total and mass produce high-strength, lightweight aluminum parts for EVs, such as battery cases, starting in 2025.
LS C&S and HAI plan to combine their respective experiences and technologies accumulated throughout the domestic and European automobile markets for a full-scale expansion into the aluminum parts market.
The new JV is predicted to post sales of approximately 200 billion won in 2027.
LS C&S has previously supplied high-strength aluminum parts for internal combustion engine vehicles to Hyundai Motor and Kia.
The company is planning to pivot and expand its business with a focus on EVs following the establishment of the new JV.
LS C&S CEO Koo Bon-kyu said, “We are trying to innovate our business model based on promising business projects related to renewable energy and EV.”
He added, “We are increasing our investment with the anticipation that the aluminum market will grow rapidly with the increase in EV supply.”
HAI is the top global manufacturer of EV aluminum parts. It currently operates factories in four countries, Austria, Germany, Poland, and Romania, and supplies aluminum EV parts to auto manufacturers such as Daimler AG and BMW.
HAI CEO Rob Van Gils said, “Supplying EV parts requires advanced technology and that is why we were looking for a strong business partner like LS C&S.” He added, “We believe that this new JV will be a ‘win-win’ opportunity for both companies.”
LS C&S is also anticipating synergy with its affiliated company LS Alsco.
LS Alsco supplies new high-strength aluminum materials for EVs and wind power generators and is the only company in Korea that possesses the aluminum alloy number (AA) required.
LS C&S Expanding New Aluminum Material Business for EV Components
LS C&S is expanding its new aluminum material business with its affiliated company, LS Alsco.
LS C&S said on Jan. 12 that its new high-strength aluminum material has been assigned an alloy number (AA8031) by the Aluminum Association (AA) of the USA.
AA8031 has enhanced strength of over 40 percent compared to the conventional aluminum materials, which have been criticized for their weakness, and improved malleability. Another weakness of aluminum, where conductivity drops when strength is enhanced, has also been improved.
LS C&S projects that aluminum will replace copper in industries where lighter weight is important, such as the auto industry, since aluminum is lighter than copper and the market for aluminum will grow in the future.
Changing the conductor in automobile wiring from copper to aluminum reduces wire weight by more than 40 percent. So the wire weight of approximately 25 kg per vehicle can be reduced to around 15 kg, resulting in improved fuel efficiency.
The company plans to expand its supply of aluminum materials for electric cars and wind power generators through its high-strength aluminum material specialist company LS Alsco.
Researcher Kim Sang-gyeom of the LS C&S Base Technology Research Center said, “Unlike patents, commercialization and the time required for commercialization serves as important review criteria for AA, which makes it difficult to obtain an alloy number.”
He added, “AA8031 has been commercialized for wires in vehicles manufactured by Hyundai and Kia since 2019 and its quality has been proven.”
AA is an institution that provides global standards to corporations and policymakers.
Over 500 alloy numbers have been assigned worldwide, and 20 alloy numbers have been assigned in Asia with Korea, Japan, and China having three, fourteen, and three, respectively. And all the three alloy numbers, including AA8031, that Korea has belongs to LS C&S.
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