Mobility technology firm Magna International’s (NYSE: MGA) and technology company LG Electronics announced a joint venture on Tuesday evening that will see them manufacture e-motors, inverters, on board chargers and, for some automakers, related e-drive systems.
The new company will be called LG Magna e-Powertrain and is designed to combine Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters, accelerating their growth in the electric powertrain market.
The companies said they recognise the growing global shift towards vehicle electrification and the venture allows them to continue to grow their electric powertrain product offerings by leveraging existing technologies, engineering capabilities and global footprints.
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LG Magna e-Powertrain becomes the latest company to move into the electric-vehicle space, although, LG has established experience in developing 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 Swamy Kotagiri.
The venture will see more than 1,000 employees located at LG sites in the US, South Korea and China.
The transaction is expected to close in July 2021.
Investors have been buoyed by the news as Magna International’s stock price has jumped 29.60% premarket to $86 per share.