LG Electronics (LG), Seoul, South Korea, and Magna International Inc. (Magna), Aurora, Ontario, Canada, have signed a transaction agreement which establishes a joint venture between the two companies. The new company, called LG Magna e-Powertrain, is headquartered in Incheon, South Korea, and will manufacture e-motors, inverters and onboard chargers and related e-drive systems.
The creation of the joint venture is expected to leverage Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters. LG Magna e-Powertrain will be made up of more than 1,000 employees in the US, South Korea and China.
Cheong Won-suk will lead the new company as CEO, having been employed by LG for twenty years and most recently as vice president and head of the LG Vehicle component Solutions Company’s Green Business. Prior to LG, Cheong spent nearly a decade with Daewoo Motors R&D.
Javier Perez, who has been with Magna since 2016, will be the new company’s COO. In this role, he will be responsible for overseeing the day-to-day operations of the joint venture. Perez brings nearly twenty-five years of automotive manufacturing and quality control experience to LG Magna e-Powertrain, eighteen of those based in Asia.
“Partnering with Magna enables LG to scale-up its global production, provide additional business opportunities and offer synergies in procurement and technological innovation,” stated Cheong. “The integrated and collaborative approach is expected to deliver quickly for customers and capitalise on the rapid growth of the worldwide electric powertrain market.”
The design, engineering and manufacturing synergies created by LG Magna e-Powertrain is expected to enable both companies to quickly react to market trends and capitalise on the growing global shift toward vehicle electrification. The new company will develop powertrain components that offer automakers a scalable portfolio, from complete solutions enabling electrification and functionality to integrating intelligent operating software and controls in new e-drive systems.
Perez commented, “The market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030. Our joint venture company brings together experts from Magna and LG to deliver a world-class portfolio of electric solutions. Leveraging existing technologies, engineering capabilities and global footprints, LG Magna e-Powertrain seeks to enable advancements that help automakers achieve some of the biggest challenges ahead in electrifying their full vehicle lineups.”