South Korea-based LG Electronics has agreed to set up a $1 billion joint venture (JV) with automotive supplier Magna International.
The JV, tentatively called LG Magna e-Powertrain, will manufacture e-motors, inverters and onboard chargers, according to LG Electronics.
LG has experience in the development of electric vehicle components most notably for the Chevrolet Bolt EV and Jaguar I-PACE.
“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio,” said Magna president and incoming CEO Swamy Kotagiri.
“Manufacturers need to be disruptive to maintain leadership positions in electrification and, through this deal, LG is entering a new phase in its automotive components business, a growth opportunity with enormous potential,” said Kim Jin-yong, president of the LG Electronics Vehicle component Solutions Company.
The JV will include more than 1,000 employees located at LG locations in the United States, South Korea and China.