LG has announced a joint venture with Magna International Inc. (Magna) called LG Magna e-Powertrain. Together, the companies will begin manufacturing e-motors, inverters and onboard chargers for a variety of car manufacturers.
In its announcement, LG said that the joint venture will couple Magna’s abilities in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters. The two hope that LG Magna e-Powertrain will give them both an advantage in the electric powertrain market which is expected to grow significantly this decade.
Commenting on the news, president of LG Electronics Vehicle component Solutions Company Dr Kim Jin-yong said:
“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. 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.”
LG said that the joint venture will include over 1,000 employees located at LG locations in the United States, South Korea and China. It said that the transaction is due to close in July but is subject to several conditions including regulatory approval and LG shareholder approval.