The JV enables the two companies to continue to grow their electric powertrain product offerings by leveraging existing technologies, engineering capabilities and global footprints. The market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030. The JV is designed to target this fast-growing global market with a suitable portfolio.
LG has established experience in the development of electric vehicle components most notably for the Chevrolet Bolt EV and Jaguar I-Pace. Against this background, LG sees good chances to accelerate the JV’s time to market and scale of manufacturing for electrification components, while software and systems integration are competencies that Magna brings to this venture.
“By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market”, said Magna President and incoming CEO Swamy Kotagiri.
The JV will include more than 1,000 employees located at LG locations in the United States, South Korea and China.
The transaction is expected to close in July of 2021, subject to a number of conditions including obtaining LG shareholder approval and all necessary regulatory approvals.
More information: www.lgnewsroom.com