LG and Magna enter joint venture agreement in powertrain electrification market

LG Electronics and Magna International Inc. announced a Joint Venture (JV) to manufacture e-motors, inverters and on board chargers and, for certain automakers, related e-drive systems to support the growing global shift toward vehicle electrification.

The new company, tentatively called LG Magna e-Powertrain, marries Magna's strength in electric powertrain systems and world class automotive manufacturing with LG's expertise in component development for e-motors and inverters, accelerating both partners' growth in the electric powertrain market.

The JV enables the two companies 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.

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 Magna's time to market and scale of manufacturing for electrification components, while software and systems integration are competencies that Magna brings to this venture.

This JV will allow customers to select from a portfolio of reliable components through to integration of an entire electrified powertrain.