LG and Magna have announced a joint venture to manufacture e-motors, inverters, onboard chargers and related e-drive systems. The new company, tentatively called LG Magna e-Powertrain, combines Magna’s experience in automotive manufacturing with LG’s expertise in component development for e-motors and inverters.
LG has plenty of experience in developing electric vehicle components, most notably for the Chevrolet Bolt EV and Jaguar I-PACE. LG will help accelerate Magna’s time to market and scale of manufacturing for electrification components, and Magna will bring its skills in software and systems integration to the joint venture.
“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,” said Magna President Swamy Kotagiri.
“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,” said LG President Dr. Kim Jin-yong. “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.”