LG Electronics and Magna International recently announced a joint venture to manufacture electric motors, inverters, on-board chargers and, for certain automakers, related e-drive systems to support the growing global shift toward vehicle electrification.
Tentatively called LG Magna e-Powertrain, the new company fuses Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters.
The companies say that the JV enables both parties to continue to grow their electric powertrain product offerings by leveraging existing technologies, engineering capabilities and global footprints. The market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030, and the JV will target this fast-growing global market “with a world-class portfolio”.
Magna is a big auto parts supplier and the parent of Magna Steyr, the famous contract manufacturer. Currently, the latter’s Austrian plant rolls out the Mercedes G-Wagen and G29 BMW Z4/A90 Toyota Supra among other models, while notable past products include the Aston Martin Rapide, Peugeot RCZ, first-gen Mini Countryman and the original E83 BMW X3.
Meanwhile LG has established experience in the development of EV components most notably for the Chevrolet Bolt EV and Jaguar I-Pace; the latter is put together by Magna Steyr in Graz.
LG will help accelerate Magna’s time to market and scale of manufacturing for electrification components, while software and systems integration are competencies that Magna brings to the table. The JV will allow customers to select from a portfolio of reliable components through to integration of an entire electrified powertrain.
The LG-Magna JV will include more than 1,000 employees located at LG locations in the US, South Korea, and China. The transaction is expected to close in July 2021, subject to usual conditions such as LG shareholder approval and necessary regulatory approvals.
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