Magna International Inc. and LG Electronics have announced a joint venture to manufacture e-motors, inverters and on board chargers to support the growing global shift toward vehicle electrification.
The new company, tentatively called LG Magna e-Powertrain, combines Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters, accelerating both partners’ growth in the electric powertrain market.
This JV will allow its customers to select from a portfolio of reliable components through to integration of an entire electrified powertrain. It will include more than 1,000 employees located at LG locations in the United States, South Korea and China.
Magna President and incoming CEO, Swamy Kotagiri, says: “This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio. By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market.”
Dr. Kim Jin-yong, President of the LG Electronics Vehicle Component Solutions Company., adds: “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 has established experience in the development of electric vehicle components most notably for the Chevrolet Bolt EV and Jaguar I-PACE.