LG, Magna Form Joint Venture to Focus on EV Power Trains
AURORA, ON—LG Electronics and Magna International Inc. have formed a joint venture to manufacture e-motors, inverters, on-board chargers and related e-drive systems to support the growing global shift toward vehicle electrification. LG Magna e-Powertrain will combine Magna’s strength in electric power train systems and world-class automotive manufacturing with LG’s expertise in component development for e-motors and inverters.
“The joint venture will enable [our] two companies to continue to grow [our] electric power train product offerings by leveraging existing technologies, engineering capabilities and global footprints,” says Swamy Kotagiri, president of Magna. “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.”
According to Kotagiri, LG has established experience in the development of electric vehicle components—most notably for the Chevrolet Bolt EV and Jaguar I-PACE.
“LG will help accelerate [our] time to market and scale of manufacturing for electrification components, while software and systems integration are competencies that [we] bring to this venture,” explains Kotagiri. “This JV will allow customers to select from a portfolio of reliable components through to integration of an entire electrified power train.
“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio,” claims Kotagiri. “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 power train market.”
“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,” adds Kim Jin-yong, president of the LG Electronics Vehicle Component Solutions Co. “We believe that the combination of our in-house prowess, and the experience and extensive history of Magna, will transform the EV power train space faster than if we proceed alone.”
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