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LG Magna e-Powertrain has started construction on its “groundbreaking” new inverter, motor, and charger plant in Mexico.
The new plant in Ramos Arizpe, around 40 miles west of Monterrey, will create products for General Motors’ electric cars.
LG Magna e-Powertrain, founded last year as a joint venture between electronics manufacturing giant LG and automotive manufacturer Magna International, hopes that the 260,00 square-foot plant will be finished as early as next year.
“Strengthening our JV’s ability to develop and produce advanced EV sub-assemblies, the Ramos site represents one of the key pillars of LG’s long-term strategy to become the auto industry’s go-to innovation partner,” said Eun Seok-hyun, president of the LG Vehicle Component Solutions Company.
The groundbreaking event was attended by executives from the joint venture and its two parent companies, as well as local government officials who expect the site will create around 400 new jobs.
“This new facility demonstrates the continuing growth of LG Magna e-Powertrain,” said Cheong Won-suk, chief executive officer of LG Magna e-Powertrain. “The JV’s ongoing success will enable us to better support our customers with best-in-class components for the next generation of electric vehicles, and help us to expand our presence in the fast-growing global EV market.”
The plant is expected to play a “key role” in GM’s journey to build a “strong, scalable, sustainable and North America-focused EV supply chain.” However, while LG Magna e-Powertain says that GM will be the “foundational customer for the new facility,” the plant will not be for the Detroit automaker’s exclusive use forever.
“In the space of just over one year, we’ve added an expansion agreement, identified a strategic location to support our customer, and are now in the process of realizing our plans,” said Tom Rucker, president of Magna Powertrain. “The building of a new facility is a true testament to the strength of this collaboration and commitment to delivering innovative solutions to customers to meet their challenges. It also reinforces our active participation in the electrification transformation whether by eDrive sub systems or full systems.”