Partnership with World's Third-largest Auto Parts Maker
LG Electronics will set up a one-trillion-won electric vehicle parts joint venture with Magna International, the world's third-largest auto parts maker.
LG Electronics announced on Dec. 23 that it will establish LG Magna Powertrain (tentative name), a joint venture for electric vehicle powertrains with Canada's Magna International.
The company’s board of directors endorsed a plan to set up the joint venture after splitting off part of the green business from the VS Division, which is in charge of the company’s automotive electronics business.
LG Electronics will establish the joint venture through a split-off, and Magna will acquire a 49 percent stake in the new company for US$453 million. The joint venture will have 30 billion won in capital.
LG Electronics will officially launch the joint venture on July 1, 2021 if shareholders approve the plan in a general meeting scheduled for March 24, 2021.
The new company plans to produce motors, inverters, vehicle chargers, battery heaters, drive systems and battery pack components for electric vehicles. LG Electronics’ sales in the new business sector amounted to 143.3 billion won in the latest business year.