LG and Magna join forces to create a new company dedicated to electric propulsion. The joint venture will be called E-Powertrain, and aims to accelerate the development of components for electric driving.
LG Magna E-Powertrain: a joint venture for electric propulsion
A settlement agreement is born for the establishment of a joint venture between LG Electronics e Magna International. The new company will take the name of LG Magna E-Powertrain and will be headquartered in Incheon, South Korea. Leading the new brand will be the CEO Cheong Won-suk, with twenty years of experience in LG. Prior to the Korean brand, Cheong spent nearly a decade with Daewoo Motors R&D. The role of COO will instead be entrusted to Javier Perez, who has worked with Magna since 2016, and who will oversee the operations of the joint venture.
The collaboration combines the strength of Magna in electric propulsion systems and LG’s experience in the development of components and inverters. E-Powertrain will produce electric motors, on-board computers and electric driving systems for various car manufacturers. The joint venture will therefore allow both to capitalize on the growing market trend, which is moving towards the electrification of vehicles.
Satisfaction on both sides
“The partnership with Magna allows LG to increase its global production, reach new business opportunities and offer synergies in procurement and technological innovation,” said the CEO Cheong. “The integrated and collaborative approach will make it possible to quickly satisfy consumers and take advantage of the rapid growth of the world market for electric engines ”.
Enthusiasm also shared by COO Perez, which states:
“We expect the market for electric motors, inverters and electric drive systems to see significant growth now and into 2030. Our joint venture brings together experts from Magna and LG to offer a portfolio of global electrical solutions. Leveraging existing technologies, engineering capabilities and global presence, LG Magna e-Powertrain seeks to deliver projects that help automakers overcome some of the biggest challenges ahead of time to electrify their entire range of vehicles. “
LG Magna e-Powertrain will include more than 1,000 employees in the United States, South Korea and China.