LG electronics and Magna will form a joint venture to produce electric vehicle parts

According to the reports, LG Electronics and Canadian auto parts manufacturer Magna announced plans to invest 1 billion US dollars to establish a joint venture to produce electric vehicle parts.

LG Electronics stated in a document that Magna will hold a 49% stake in the joint venture, while LG Electronics will hold the remaining 51% of the joint venture.

The company said that the joint venture will be named LG Magna e-Powertrain tentatively and will produce electric motors, inverters, onboard chargers, and electronic drive systems at its factories in Incheon, South Korea, and Nanjing, China.

The transaction is expected to be completed in July 2021, but a series of conditions must be met, including approval by LG shareholders and all necessary regulatory approvals.

LG Electronics is South Korea’s second-largest electronics company after Samsung. In addition to smartphones, it is also involved in a range of industries, including white goods and home appliances.

It is reported that the company is in a leading position in 4G LTE and 5G patents. According to data from a US patent consulting company, the company obtained the most LTE and LTE-Advanced patents in the US for five consecutive years from 2012 to 2016.

Magna is an auto parts supplier with expertise in vehicle engineering and OEM manufacturing. Its product capabilities include the manufacture of body, chassis, exterior, seats, powertrain, electronics, autonomous driving assistance, mirroring, locking and car Top system has electronic and software engineering capabilities in multiple fields. The company is a supplier to Tesla and supplies interior panels to Tesla.

(Source)