This file image, provided by LG Electronics Inc. on Dec. 23, 2020, shows a concept for a future vehicle using parts from LG and Magna International Inc. The two sides agreed to set up a joint venture to make auto parts, including e-motors and inverters.
SEOUL, July 1 (Korea Bizwire) — LG Electronics Inc.’s electric vehicle (EV) powertrain joint venture with Canadian auto parts maker Magna International Inc. was launched Thursday as the tech giant eyes to expand its presence in the future mobility industry.
LG Magna e-Powertrain Co. was established after LG spun off its EV parts business covering high power distribution modules and battery heaters following its board meeting.
Under the agreement, Magna will acquire a 49 percent stake in the joint venture for US$453 million.
Headquartered in Incheon, 40 kilometers west of Seoul, LG Magna e-Powertrain will have about 1,000 workers to produce powertrain products, like motors and inverters, for EVs.
It will have two subsidiaries — LG Magna Nanjing e-Powertrain Vehicle Components Co. and LG Magna e-Powertrain USA Inc.
LG and Magna are looking to create big synergy with the joint venture as the EV industry grows sharply.
Local analysts predict LG Magna e-Powertrain’s revenue to top 500 billion won (US$441 million) this year and surpass 1.2 trillion won in 2023. LG previously said it expects the joint venture to post annual sales growth of 50 percent from 2022 to 2025.
The move is part of LG’s efforts to beef up its competitiveness in the future mobility sector with three main pillars — infotainment, powertrain and auto lighting system.
The company earlier launched a joint venture called Alluto with Swiss-based software firm Luxoft, which will develop solutions for a digital cockpit, in-vehicle infotainment, passenger-seat entertainment and ride-hailing systems based on LG’s webOS Auto platform.
In the automotive lighting business, LG pins high hopes on ZKW Group, an Austria-based firm, which the company acquired in 2018.
It also expects more collaboration with LG Group’s other affiliates, such as LG Energy Solution Ltd., which makes EV batteries, and LG Display Co., which manufactures automotive display panels.
(Yonhap)
