Canada’s Magna International and LG Electronics announced this morning a new joint venture to manufacture e-motors, inverters and on board chargers and, for certain automakers, related e-drive systems.
The joint venture, tentatively named LG Magna e-Powertrain, is an attempt to leverage the strengths of each of the companies to support the global shift toward electrification.
“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio. 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 and incoming CEO Swamy Kotagiri in a statement.
As part of the deal, Magna will purchase a 49% stake in the new company for $582 million CAD ($453 million USD), with LG holding the other 51%. (via Bloomberg)
The deal is expected to close in July 2021 and will include more than 1,000 employees at various LG locations in the US, South Korea, and China.
This isn’t the first deal in the EV market for Magna International. In October Fisker announced it was entering into an agreement with Magna to build its upcoming Fisker Ocean SUV.