LS Cable & System breaks ground on busduct and battery parts factory in Mexico to accelerate North American expansion

"Mass Production in the Second Half of Next Year... High Growth in AI Data Center Related Business"

LS Cable & System is accelerating its entry into the North American market by starting construction of a new factory in Mexico. This follows the recent decision to build an underwater cable factory in the United States and establishes a supply chain for electric vehicle batteries in North America.

On the 2nd (local time), attendees are taking a commemorative photo at the groundbreaking ceremony of the bus duct factory in the industrial complex of Corregidora City, Quer?taro State, Mexico.
From the left, third is Kim Ki-nam, LS EVM Management Officer; Koo Bon-gyu, CEO of LS Cable & System; Mauricio Kuri, Governor of Quer?taro State; Marco del Prete, Minister of Development; Adolfo Colin, Mayor of Corregidora City.
[Photo by LS Cable & System]

On the 2nd (local time), LS Cable & System announced on the 4th that it had begun construction of a busduct factory, a large-capacity power distribution system, and an electric vehicle battery parts factory in Mexico.

The factory is being built on a site of approximately 126,000㎡ in an industrial complex in Quer?taro, central Mexico, with a total floor area of 16,800㎡. Mass production of products will begin in the second half of next year.

LS Cable & System plans to develop the Mexico factory as an export hub targeting the North American market. Mexico is considered an optimal location due to its low labor costs and benefits from the United States-Mexico-Canada Agreement (USMCA).

The busducts from the Mexico factory are expected to be supplied to electric vehicle, battery, semiconductor factories, and artificial intelligence (AI) data centers. The Mexico factory will become LS Cable & System’s fourth busduct production base, following the Gumi plant in Gyeongbuk, the Wuxi plant in China, and the Ho Chi Minh plant of its affiliate LS Eco Energy in Vietnam.

Battery parts will also be produced at the Mexico factory. Along with the Poland factory, it will be developed as a core production base for the battery parts business.

An LS Cable & System official said, "We will expand our business by combining the experience and technological capabilities we have accumulated with Mexico’s industrial infrastructure and manufacturing competitiveness. In particular, we expect the busduct market to show high growth as the AI data center market expands."