LG Magna e-Powertrain

History

2020: Creation of the company on equipment manufacturing for electric vehicles

At the end of December, 2020 announced LG Electronics creation of the enterprise, joint with the Canadian producer of the automobile Magna International components, for development of the equipment for electric vehicles. The project is estimated at $1 billion.

Part of the business on production of component parts for cars intends to separate LG and to create the new company which is completely belonging to it under the name LG Magna e-Powertrain. Magna will purchase 49% of the new company, the Canadian producer will pay for actions $453 million 51% of the joint venture will be at LG.

LG and Magna created the company on equipment manufacturing for electric vehicles for $1 billion

The LG Magna e-Powertrain joint venture officially will begin work in July, 2021 after receiving approval of shareholders of LG in March. The new company will be based in Incheon, about one thousand employees of LG will be transferred there. LG Magna e-Powertrain will also work in China and the USA, it will make electric motors, inverters, chargers and the systems of the electric drive. Clients of the new company will be able to order the complex electrified power platforms or to purchase only necessary components for the electric vehicles.

Producers should show determination to save the leading positions in the field of electrification, and thanks to this transaction LG enters a new phase in the business on production of automobile components, with a possibility of growth with a huge potential, - the representative of division of LG Electrtonics on production of component parts for cars Kim Gene Yong told. - We consider that the combination of our own skill, experience and the extensive history of Magna will change the sector of power units of electric vehicles quicker than if we acted alone.

The LG company created the business on production of automobile component parts in 2013. In 2018 it purchased the Austrian company on production of the ZKW headlights for 1.1 billion euros.^[1]

Electric vehicles

Notes