Magna and LG announces a billion dollar joint venture in electric car gear.
This joint venture is tentatively refered to as LG Magna e-Powertrain.
the one billion dollar venture, will see both companies manufacture e-motors, inverters, and onboard chargers.
automotive supplier Magna International Inc is a South Korea-based company, which went into a joint venture with LG Electronics Inc as announced recently.
LG will own 51% of the new company and Magna will own 49%, LG said.
LG is a large conglomerate, that deals with the production electronics, smartphones and home appliances.LG Group’s major affiliates include LG Display Co Ltd, which counts Apple Inc as its customer, as well as LG Chem Ltd, whose wholly owned LG Energy Solution subsidiary provides EV batteries to Tesla Inc.
According to the press release, the transaction which is expected to close in july 2021 will create massive employment in LG locations at the united states,Seoul and China.
Before now LG has supplied motors, battery packs and other components.
Although Magna already produces electronic vehicles, one of their major goals is to achieve market dominance in terms of production of electric cars. according to the incoming CEO, gaining more control over production of the high-value parts of an electric car “has always been part of the strategy as we move forward,” Magna’s incoming CEO, Swamy Kotagiri said in an interview with Reuters on Tuesday ahead of the announcement
“With combined synergies of both companies together I think we’ll be able to address not only our existing customers, but all the major audiences and preferably the new entrances looking for electric platforms,” he said.