LG Electronics Partners with Canadian-Based Magna International to Create Electric Car Components Business
As an increasing amount of attention continues to be diverted towards the EV market, numerous automobile makers and suppliers are better positioning themselves to take advantage of the forthcoming growth in electric cars. As a result, Magna International Inc, a Canadian company that produces mobility technology for automakers, has partnered up with LG Electronics to produce an assortment of parts for electric vehicles.
According to a LG company filing, the South Korean company has entered into a joint venture worth US$453 million with Magna, and will own a 51% stake in the unit. The partnership will see the two companies work together to manufacture inverters, e-motors, and electric-drive systems in South Korea and China. The new company, currently being called LG Magna e-Powertrain will predominantly produce orders for Magna and its clients, while EV components for those orders will be sourced from LG, including its battery heater unit and power relay assembly division.
According to a joint media release, LG’s expertise is expected to speed up Magna’s time to market and increase its economies of scale for electrification components, while Magna will bring its competencies in software and systems integration to the partnership. LG Magna e-Powertrain is anticipating to employ over 1,000 workers across LG locations in China, South Korea, and the US. Following the news, Magna shares soared by more than 13% to the company’s highest price on record.
Information for this briefing was found via LG Electronics Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
