LG Electronics and Magna International Inc. have signed an agreement which establishes a joint venture between the two companies on Thursday. The companies in a press release said that the new company will be called LG Magna e-Powertrain, and its headquarters will be in Incheon, South Korea and will be led by a strong management team.
The creation of this joint venture will blends Magna’s strength in electric powertrain systems and world-class automotive manufacturing with LG Electronic's expertise in component development for e-motors and inverters.
This collaboration of leading companies marks a milestone for the new company that will manufacture e-motors, inverters, on-board chargers and for certain automakers, related e-drive systems. Chief Executive Officer Cheong Won-suk will lead the joint venture company who was most recently the vice president and head of the LG Vehicle component Solutions Company’s Green Business.
Javier Perez was with Magna since 2016 and now will be the Chief Operating Officer of the joint venture company and will be responsible for overseeing the daily operations of the joint venture.
The new joint venture company is expected to enable both companies to quickly react to market trends and capitalize on the growing global shift toward vehicle electrification.
The new LG Magna e-Powertrain 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. CEO Cheong said, “The integrated and collaborative approach is expected to deliver quickly for customers and capitalize on the rapid growth of the worldwide electric powertrain market.”
COO Perez said, “The market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030." Perez also said, "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."
According to the release the joint venture company, LG Magna e-Powertrain will be made up of more than 1,000 employees in United States, South Korea and China.