LG Electronics and Magna International have signed the transaction agreement which establishes a joint venture between the two companies.
The new company, to be called LG Magna e-Powertrain, is based in Incheon, South Korea.
Heading the new company will be CEO Cheong Won-suk, a 20-year LG veteran who was most recently VP and head of the LG Vehicle component company’s green business. Prior to LG, Cheong spent nearly a decade with Daewoo Motors R&D.
Javier Perez, who has been with Magna since 2016, will be COO responsible for overseeing operations of the joint venture. Perez brings nearly 25 years of automotive manufacturing and quality control experience to LG Magna e-Powertrain, 18 based in Asia.
The creation of the joint venture unifies Magna’s electric powertrain expertise with LG expertise in e-motor and inverter component development.
The JV will manufacture e-motors, inverters, on-board chargers and related e-drive systems.
The new company will develop powertrain components, integrated intelligent operating software and e-drive system controls.
“Partnering with Magna enables LG to scale-up its global production, provide additional business opportunities and offer synergies in procurement and technological innovation,” said Cheong.
“The market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030,” said Perez.
The new JV will have 1,000 workers in the US, South Korea and China.