Magna and LG Electronics announced that they’ll be forming a join venture to manufacture components for electric vehicles. The goal is to support the growth of the electric vehicle industry and the increased demand for components worldwide.
Called LG Magna e-Powertrain, the combined venture is expected to add 1,000 new jobs at its locations in the United States, South Korea, and China.
The partnership with LG will improve Magna’s time to market and scale of manufacturing. A client will be able to choose from a catalog of reliable components when developing its electric product and basically have it read to go.
“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 and incoming CEO Swamy Kotagiri. “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.”
This is all a roundabout way of saying new electric vehicles can be developed quicker, with reliable components, at controlled pricing. As the industry as whole moves this way, this investment early on will likely help Magna be at the forefront of this electric future.
Updated (12:35 pm EST, 12/23/2020): Headline updated.