The Austrian company Hammerer Aluminium Industries (HAI) and the Korean company LS Cable & System (LS C&S) have agreed to invest a combined 67.5 billion won ($53 million) in the creation of a joint venture that will begin producing battery cases and other EV components made of lightweight, high-strength aluminium in 2025.
Both businesses intend to enter the market for aluminium vehicle components by utilising the respective knowledge they have each gained in Europe and Korea. In 2027, LS C&S anticipates that the joint venture will produce revenues of about 200 billion won.
For the manufacture of Hyundai Motor and Kia automobiles with internal combustion engines, the LS Group subsidiary has provided high-strength aluminium components. The business intends to concentrate more on making components for EVs in light of the foundation of the joint venture.
"We have sought to reform our business model by shifting our focus to renewable energies and EV-related businesses. As we expect the aluminum market to grow rapidly in line with the supply of EVs, we have increased our investments to dominate the market in advance," said LS C&S CEO Koo Bon-kyu.
HAI is recognised as the industry leader in aluminium EV parts. It has provided its goods to Daimler and BMW through its operations in four European nations, including Austria and Germany. The CEO of the Austrian company, Rob van Gils, stated that his business selected LS C&S to acquire the cutting-edge technology required to supply EV components.
As the only Korean company whose aluminium material has been given an alloy number by the U.S. Aluminum Association and as the supplier of its new high-strength aluminium materials for the production of electric vehicles and wind turbines, LS C&S anticipates that its affiliate, LS Alsco, will profit from the recent partnership.
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