• LG Electronics intends to target the electric vehicle power train market by teaming up with Magna International.
• The joint venture will be officially launched in July and will be headquartered in Incheon, South Korea.

The European Commission has approved the joint venture between South Korea’s LG Electronics and Magna International, the Canadian manufacturing company. According to reliable sources, the apparent joint venture will be officially launched in July this year.

LG Electronics had earlier revealed its plans of separating the electric vehicle powertrain business from its vehicle component solutions. Sources confirmed that the electronics giant intends to target the electric vehicle power train market by teaming up with Magna International.

For those unaware, Magna International is a mobility technology company that primarily supplies to the automotive industry. The company was founded in 1957 by Frank Stronach and is headquartered in Aurora, Canada.

LG Electronics will combine it's motor and inverter technologies expertise with Magna International’s powertrain engineering capability to acquire a competitive lead in this business space. The capital for establishing this new venture is likely to be around USD 26.7 million and will be headquartered at Incheon, South Korea.

Moreover, this joint venture will manufacture and sell electric vehicle power trains which can generate 250 kilowatts of power. Some experts have also claimed that the joint venture will surpass USD 178.2 million in terms of annual sales.

According to LG Electronics, the electric vehicle parts market size had reached a valuation of USD 9.23 billion in the year 2020 and is likely to expand at a 35% annual growth rate through 2025.

The Seoul-based multinational conglomerate expects collaboration with Magna International can potentially allow it to capture a prominent share in this market space, cited sources close to the company.

Source Credits –

https://www.business-standard.com/article/international/lg-electronics-magna-international-jv-gets-eu-nod-set-for-july-launch-121053100288_1.html