LG Electronics & Magna start EV joint venture
LG Electronics and Magna have announced a joint venture to manufacture electric motors, inverters and onboard chargers. The joint venture, tentatively named ‘LG Magna e-Powertrain,’ will also manufacture complete electric drive systems for automobile manufacturers.
The new company combines Magna‘s electric drive system and automotive manufacturing capacities with LG’s technical expertise in developing components for electric motors and inverters, creating a starting point for accelerated growth of both partners in the electric drive market, the two companies have said.
The joint venture is planned to employ more than 1,000 people working at LG sites in the US, South Korea and China. The establishment of the joint venture is expected to be fully completed by July 2021, once approved by LG shareholders and all necessary regulatory approvals have been granted.
“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio,” said Magna President and incoming CEO Swamy Kotagiri.
“Manufacturers need to be disruptive to maintain leadership positions in electrification and, through this deal, LG is entering a new phase in its automotive components business, a growth opportunity with enormous potential” added Dr Kim Jin-yong, President of the LG Electronics Vehicle Component Solutions Company. “We believe that the combination of our in-house prowess and the experience and extensive history of Magna will transform the EV powertrain space faster than if we proceed alone.”
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