LG Electronics and automotive supplier Magna International will establish a joint venture, tentatively named LG Magna e-Powertrain, with an investment of US$1 billion to produce electric motors, inverters and on-board chargers.
According to LG Electronics, the joint venture is tentatively named LG Magna e-Powertrain, with an investment of US$1 billion and will produce electric motors, inverters and on-board chargers. This cooperative operation expands the wave of integration among suppliers and aims to occupy the growing market for electric vehicles and electric drive shaft systems. Earlier this year, gear manufacturer BorgWarner Inc. (BorgWarner Inc.) acquired rival Delphi (Delphi), Japanese manufacturers Aisin Seiki Corp (Aisin Seiki Corp), Denso Corp. (Denso Corp) and Toyota Motor Corporation ( Toyota Motor Corp.) established a new electric shaft joint venture called BluE Nexus. Many companies are deploying the future electric vehicle parts field.
LG will own 49% of the new company and Magna will hold 51%. According to a press release, the transaction is expected to be completed in July 2021, subject to approval by LG shareholders, and the company will employ approximately 1,000 employees in the United States, Seoul and LG China.
LG previously provided motors, battery packs and other components for GM's Chevrolet Bolt EV. Magna has produced electric car gears for companies including Volkswagen. Magna’s incoming CEO Swamy Kotagiri said in an interview with foreign media before the announcement on Tuesday, but gaining more initiative in the production of high-value core parts for electric vehicles has always been part of our strategy to move forward.